The UK Government is currently progressing the Employment (Amendment) Bill, first unveiled in October 2024. The Bill proposes a wide-ranging update to existing employment laws, aiming to improve protection and fairness for workers across multiple areas. While these proposals have not yet been passed into law, they signal significant shifts that employers should begin preparing for.
Here are the main changes currently proposed:
1. Statutory Sick Pay for Low Earners
For the first time, statutory sick pay (SSP) could become available to the lowest-paid workers.
Currently, employees must earn above the Lower Earnings Limit (£123/week, rising to £125 in April 2025) to qualify for SSP.
Under the proposal, employees earning below this threshold would be entitled to 80% of their normal weekly earnings in sick pay.
SSP would also start from day one of absence, removing the current three-day waiting period.
HR Considerations:
Employers will need a clear and consistent absence management policy to monitor and manage the potential rise in sick pay costs and ensure all absence records are well documented.
2. Increased Penalties for Unlawful Redundancy and Fire & Rehire
The current maximum penalty for failing to follow correct procedures in a collective redundancy or "fire and rehire" situation is 90 days' pay.
This would double to 180 days' pay under the proposed legislation.
HR Considerations:
Employers must ensure full compliance with consultation and documentation requirements during collective redundancies or contractual changes. Legal advice should be sought where necessary.
3. Stronger Holiday Record-Keeping Obligations
Employers may face new requirements to demonstrate compliance with statutory annual leave entitlements under the Working Time Regulations.
HR Considerations:
Review your current systems for tracking and approving annual leave. Digital HR tools can help ensure accurate record-keeping and compliance.
4. Extended Protections for Zero-Hours and Agency Workers
Zero-hours workers may gain new rights, including:
Minimum notice before shift cancellations
The right to request a contract reflecting their average working hours
These rights are expected to extend to agency workers as well.
HR Considerations:
Check whether agency staff contracts reflect actual working patterns. Contracts may need to be updated to avoid legal risk and ensure transparency.
5. Tribunal Claims Could Be Brought on Behalf of Workers
A proposed new Fair Work Agency would have the power to:
Bring employment tribunal claims on behalf of workers
Provide legal assistance and representation
Enforce statutory payments and other entitlements
HR Considerations:
Employers should ensure they have sound HR procedures and up-to-date policies in place to reduce the risk of claims. Access to legal support will be even more important.
6. Statutory Bereavement Leave After Miscarriage
Employees would gain the right to statutory bereavement leave following a miscarriage before 24 weeks of pregnancy.
Currently, bereavement leave is only available after a stillbirth (24 weeks or more) or the death of a child under 18.
HR Considerations:
Organisations should update their leave and bereavement policies to include this entitlement and ensure employees are aware of the support available.
What This Means for Employers
Although the proposals have not yet become law, they indicate a significant shift toward broader worker protections and more rigorous employer responsibilities. It is advisable for HR teams to:
Review existing policies and employment contracts
Strengthen procedures for sickness absence, redundancy, and leave
Prepare for increased administrative duties, especially around leave tracking
Ensure contracts reflect actual working patterns—particularly for agency and casual staff
Being proactive will help minimise disruption and demonstrate a commitment to compliance and employee wellbeing.
