Today, Labour is introducing new workplace rights to put an end to unfair employment practices and help drive sustainable economic growth.

The Employment Rights Bill will ban exploitative zero-hours contracts, end “fire and rehire” tactics, and provide core employment rights from day one—including paternity and parental leave, bereavement leave, and protection from unfair dismissal.

This Bill modernises outdated employment laws, raising wages, improving productivity, and ensuring businesses thrive with legislation fit for today’s economy. It represents the most significant overhaul of workers’ rights in a generation, advancing our goal to make work fair and rewarding for all.

Basic Rights from Day One

Employees will gain access to key workplace rights from their first day in a new role, ensuring greater security and fairness.

• Stronger protections against unfair dismissal will ensure job security is no longer a privilege for the few but a standard for everyone.
• A new statutory probation period will apply to new hires, giving employers time to assess suitability while ensuring employees enjoy basic protections immediately. We will consult on the appropriate length of this period, with a preferred duration of nine months.
• Rights to bereavement leave, paternity leave, and parental leave will also take effect from day one.
• Statutory sick pay will be strengthened by removing the lower earnings limit and eliminating the waiting period before payments begin.

Ending Exploitation in the Workplace

The Bill will put a stop to exploitative practices like zero-hours contracts and “fire and rehire” schemes:

• Workers on zero-hours contracts who regularly work set hours will have the right to switch to a guaranteed-hours contract. For those who prefer flexible work arrangements, zero-hours contracts will remain an option.
• The Bill will close loopholes that allow companies to abuse fire-and-rehire tactics, ensuring fairer treatment for workers during business restructuring.

A Fairer and More Flexible Workplace

We’re committed to creating workplaces that better align with people’s lives, promoting fairness and flexibility for employees and employers alike:

• Flexible working will become the default wherever practical, giving more people access to better work-life balance.
• Large employers will be required to develop action plans for gender equality, including support for employees going through menopause.
• Stronger protections will be introduced for pregnant workers and those returning from maternity leave, safeguarding them from unfair dismissal.

A New Era of Fair Work Enforcement

To ensure these new rights are upheld, we will establish a Fair Work Agency. This new body will bring together existing enforcement agencies to:

• Protect workers’ rights—including holiday pay and sick pay.
• Support employers with clear guidance on legal compliance.

This transformative Bill marks a major step forward for workers and businesses alike. It delivers fairer workplaces, helps employees thrive, and lays the foundation for a stronger, more prosperous economy. With these reforms, we’re making work fair, flexible, and rewarding—and ensuring that work truly pays for everyone.