The Employment Rights Bill 2024: What UK Small Businesses Need to Know

By Rosie Campbell, Thrive. 27th December 2024

As a small business owner, staying on top of employment law changes can feel like just another thing to juggle in an already packed schedule. But understanding the Employment Rights Bill 2024 isn’t just about compliance — it’s about safeguarding your business and supporting your people.

The new legislation brings significant changes aimed at strengthening employee protections and modernising workplace practices. For small businesses, these changes can feel daunting, but they’re also an opportunity to enhance your workplace and stand out as an employer of choice.

Let’s break it down, so you know exactly what you need to do and how Thrive. can help you every step of the way.

What Is the Employment Rights Bill 2024?

The Employment Rights Bill, introduced in October 2024, is designed to improve worker protections across the UK. Key reforms include:

• Day-One Employment Rights

• Restrictions on Zero-Hours Contracts

• Tighter Controls on Fire and Rehire Practices

• Enhanced Redundancy Protections

• Expanded Family Leave Provisions

These changes mean updates to your policies, processes, and contracts, but they also provide a framework for building trust and loyalty within your workforce.

Key Takeaways for Small Business Owners

1. Day-One Employment Rights

Employees now have access to core employment rights from their very first day, including:

• The right to request flexible working.

• Protection from unfair dismissal.

• Entitlement to sick pay and holiday pay [1].

What This Means for You:

Your onboarding process needs to be watertight. Employees must understand their rights from day one, and your contracts and policies should clearly reflect these entitlements.

2. Restrictions on Zero-Hours Contracts

The bill introduces stricter regulations on zero-hours contracts, requiring businesses to:

• Guarantee minimum working hours after a set period of employment.

• Provide compensation for last-minute shift cancellations [2].

What This Means for You:

If you rely on zero-hours contracts, you’ll need to review your workforce planning. Offering predictable hours can improve employee satisfaction and reduce turnover, but it requires careful scheduling and planning.

3. Fire and Rehire Practices

The bill heavily restricts the practice of dismissing employees and re-engaging them on less favourable terms. Employers must demonstrate genuine business reasons for contractual changes and consult with employees [3].

What This Means for You:

Transparent communication is crucial. If you need to make changes to contracts, involve employees early and document the process thoroughly.

4. Enhanced Redundancy Protections

Redundancy processes are becoming more employee-focused, with measures including:

• Priority redeployment for parents and carers.

• Extended consultation periods for those at risk of redundancy [4].

What This Means for You:

Redundancies will require more planning, clear documentation, and sensitivity to employee needs. Mishandling this process could lead to legal challenges and damage your reputation.

5. Family Leave Provisions

The bill introduces expanded leave entitlements, including:

• Paid leave for miscarriage or fertility treatment.

• Improved parental leave provisions for all employees [5].

What This Means for You:

You’ll need to update your leave policies and ensure managers are trained to handle sensitive requests with empathy and compliance.

How Thrive. Can Help Your Business Adapt

At Thrive., we understand how overwhelming legislative changes can feel, especially when you’re already managing the day-to-day challenges of running a small business. That’s why we’re here to take the stress out of compliance.

1. Policy Updates and Compliance Checks

We’ll review your contracts, handbooks, and policies to ensure they meet the new requirements. From zero-hours contracts to family leave provisions, we’ll make sure your business is compliant.

2. Manager Training

Your managers play a key role in implementing these changes. Thrive. provides practical training to help them navigate flexible working requests, redundancy consultations, and more.

3. Workforce Planning

If your business relies on flexible contracts, we’ll help you develop a strategy to maintain operational efficiency while complying with new restrictions.

4. Documentation Support

We’ll draft legally compliant templates for contracts, redundancy consultations, and family leave requests, so you’re always prepared.

5. Ongoing Advice

Employment law doesn’t stand still, and neither do we. Our ongoing support ensures you’re always ahead of the curve, ready for any future changes.

Why This Matters for Your Business

Complying with the Employment Rights Bill isn’t just about avoiding fines or tribunals. It’s about creating a workplace where employees feel valued, respected, and protected. Businesses that embrace these changes are more likely to see benefits like:

50% lower turnover rates [6].

23% higher productivity from engaged employees [7].

A stronger reputation, making it easier to attract top talent [6].

Take the Stress Out of Compliance with Thrive.

Navigating the Employment Rights Bill 2024 doesn’t have to be a headache. At Thrive., we’re here to help you turn compliance into an opportunity to strengthen your business and build trust with your team.

Contact us today to find out how we can help your business thrive under the new legislation. Together, we’ll make sure you’re ready for whatever comes next.

Let Thrive. take the complexity out of employment law so you can focus on growing your business. Contact us today!

References

[1] GOV.UK. Employment Rights Bill Overview. Available at: https://www.gov.uk

[2] Acas. Managing Zero-Hours Contracts Guide. Available at: https://www.acas.org.uk

[3] CIPD. Fire and Rehire Practices Report 2024. Available at: https://www.cipd.co.uk

[4] HR Review. Redundancy Rights for UK Employees. Available at: https://www.hrreview.co.uk

[5] Personnel Today. Family Leave Entitlements Expanded. Available at: https://www.personneltoday.com

[6] Engage for Success. Employee Engagement and Retention Insights. Available at: https://engageforsuccess.org

[7] Deloitte. Workplace Productivity Report 2023. Available at: https://www.deloitte.com