A new Employment Rights Bill is set to introduce some of the biggest changes to UK workplace law in a generation. For NHS staff, while many of your Agenda for Change (AfC) terms are already more generous, this new legislation strengthens your baseline legal protections and brings significant benefits, especially for new starters, bank staff, and those on non-AfC contracts.
What is the new Employment Rights Bill?
The Employment Rights Bill (2024-2025) is a proposed piece of legislation designed to create a more secure and fair working environment for all UK employees. It aims to update existing laws to better reflect modern working patterns and provide a stronger safety net from the very first day of a new job.
The Bill introduces a wide range of changes, focusing on several key areas:
- Day-one rights for protection against unfair dismissal and parental leave.
- Improvements to Statutory Sick Pay (SSP).
- Making flexible working the default arrangement.
- Restrictions on controversial 'fire-and-rehire' tactics.
- Stronger protections for workers on zero-hours contracts.
It's important to remember that this is a Bill, meaning it must pass through Parliament before it becomes law. The changes are expected to be phased in during 2026 and 2027. For the most up-to-date information on when each measure will come into force, always check the official gov.uk website.
A New Foundation: Key Day-One Rights
Perhaps the most significant change is the move to give employees crucial rights from their first day of employment. This removes the long qualifying periods that currently exist for certain protections.
Protection from Unfair Dismissal
Currently, employees generally need two years of continuous service to be protected from unfair dismissal. The new Bill proposes to make this a day-one right. This means that from the moment you start a new role, your employer cannot dismiss you without a fair reason and without following a proper process. The new law will still include a statutory probation period, but it marks a major shift in providing job security from the outset.
Parental and Paternity Leave
The right to take paternity leave and unpaid parental leave will also become a day-one right. At present, employees often need to have worked for their employer for a set number of weeks to qualify. This change will provide immediate support for new parents, allowing them to take time off regardless of how long they've been in their job.
How does this compare to the NHS?
For most staff on Agenda for Change contracts, these changes reinforce rights you may already have. The NHS generally has robust procedures for managing performance and conduct, meaning new starters are already well-protected in practice. Similarly, occupational parental leave schemes are often available from day one.
However, this new legislation raises the *statutory floor*—the legal minimum every employer must adhere to. This is vital for staff who aren't on AfC contracts, such as those working for outsourced service providers or on some bank agreements. It ensures everyone has a guaranteed level of security.
Changes to Sick Pay: More Inclusive Support
The Bill proposes two crucial updates to Statutory Sick Pay (SSP), the minimum amount employers must pay to sick employees.
- Ending the three-day wait: SSP will become payable from the first day of sickness, rather than the fourth.
- Removing the earnings threshold: The Lower Earnings Limit (LEL) will be removed, meaning even the lowest-paid workers will be entitled to SSP.
The removal of the LEL is particularly important. It ensures that part-time staff, who might work only one or two shifts a week and fall below the current earnings threshold, will now receive financial support when they are unwell.
For NHS staff on AfC contracts, your right to Occupational Sick Pay is far more generous than SSP. However, these changes to the statutory scheme are an important backstop. They will be most beneficial for bank staff who may only be entitled to SSP, or for new starters during the initial months before they qualify for full occupational sick pay benefits.
Sick Pay: Statutory vs NHS Occupational
The table below shows how the proposed SSP rules stack up against typical NHS terms.
| Feature | Current SSP Rules | Proposed SSP Rules | NHS Occupational Sick Pay (Typical AfC) |
|---|---|---|---|
| Waiting Days | 3 days (unpaid) | 0 days | 0 days |
| Earnings Threshold | Must earn above the Lower Earnings Limit | No minimum earnings threshold | Based on contract, not an earnings limit |
| Pay Rate | Flat statutory weekly rate | Flat statutory weekly rate | Full pay, then half pay (duration depends on service length) |
Flexible Working Becomes the Default
The new legislation will change the dynamic around flexible working. Instead of an employee having the right to *request* it, flexible working will become the default. This means employers will be legally required to grant requests unless they can provide a reasonable and robust business case for why it isn't feasible.
This shift puts the onus on the employer to justify a refusal, rather than on the employee to justify their request. For the NHS, an organisation already promoting flexible working through the NHS People Promise, this law will formalise and strengthen that commitment.
It could make it easier for staff to arrange compressed hours, adjust shift patterns, or secure part-time roles to improve their work-life balance and help with caring responsibilities.
For example, a Band 5 nurse working 30 hours a week wants to condense their hours into three longer shifts to reduce childcare costs. Under the new rules, their trust would need to accommodate this by default, unless it could demonstrate that doing so would have a genuine, negative impact on patient care or service delivery.
This change has the potential to be a powerful tool for retaining experienced staff who might otherwise leave the health service due to inflexible schedules.
Stronger Protections for Insecure Work
The Bill also takes aim at insecure working practices, which will have a direct impact on many who work in and around the NHS.
Restrictions on 'Fire-and-Rehire'
The practice of 'fire-and-rehire'—where an employer dismisses staff and offers to re-employ them on new, less favourable contracts—will be heavily restricted. The new law will require employers to engage in genuine and transparent consultation before proposing any changes to contracts. This provides greater protection against sudden, imposed cuts to pay or conditions, a particular concern for staff in outsourced services or wholly-owned subsidiaries.
A Better Deal for Zero-Hours Workers
For the thousands of NHS staff who work on the bank, the proposals to strengthen protections for zero-hours workers are welcome news. The changes are expected to give workers the right to request a more predictable and stable contract after a certain period of working regular hours. There may also be provisions for compensation for shifts that are cancelled at short notice.
While many enjoy the flexibility of bank work, others seek more stability. These new rights could provide a clear pathway from a flexible bank agreement to a permanent, substantive post. If you're looking to make that move, our Application Co-pilot can help you craft a compelling supporting statement that highlights your skills and experience.
Key takeaways
- The Employment Rights Bill introduces major upgrades to UK employment law, creating a higher statutory floor for everyone.
- Key changes include day-one protection from unfair dismissal, day-one parental leave, and improved Statutory Sick Pay (SSP).
- Flexible working will become the default, meaning employers must have a good reason to refuse a request.
- For most NHS staff on Agenda for Change contracts, your existing terms for sick pay and leave remain superior to the new statutory minimums.
- The changes will be most impactful for bank staff, new starters, part-time workers, and those in outsourced roles, providing them with much-needed security.
- The new laws are expected to be phased in during 2026-2027; check gov.uk for official commencement dates.