The Employment Rights Bill, introduced in Parliament on October 10, 2024, represents a significant step forward in the UK government’s commitment to enhancing worker protections and creating a more equitable labor market.

The bill is expected to come into effect in stages, with some key provisions being implemented as early as October 26, 2024, and others anticipated by April 6, 2025. Among the key reforms, employers will soon be under a new duty to take reasonable steps to prevent workplace sexual harassment. The removal of the two-year qualifying period for unfair dismissal claims is also slated to take effect in April 2025.

While some provisions are still under consultation, and full implementation may take time, this bill promises far-reaching changes that will shape the UK employment landscape for years to come. Both employers and employees are advised to keep abreast of these changes and prepare for their rollouts.

For umbrella employees like you, understanding these changes is important to know how your rights and protections are evolving. This blog outlines the key elements of the Bill and how they impact you.

Greater Flexibility in the Workplace

One of the main pillars of the Employment Rights Bill is improving access to flexible working. While flexible working options have been a hot topic for years, the pandemic fast-tracked their adoption. Many employees, including contractors and freelancers, now value the ability to choose when and where they work.

What’s Changing?

Under the new Bill, all workers now have the right to request flexible working from day one of their employment. Previously, employees had to wait six months before submitting a request. For umbrella employees, this means greater control over their assignments, making it easier to balance work with personal commitments. While your ability to work flexibly might depend on the end client’s needs, having this right allows more negotiation power for flexible arrangements.

Comment: This change is important for umbrella workers, as it provides an additional layer of flexibility when moving between assignments. Umbrella companies are now required to adapt to these new regulations, ensuring that employees can request flexible working arrangements from the start, although the final decision will always depend on the client’s business needs.

Easier Resolution of Workplace Disputes

The Bill introduces measures to ensure that disputes between employees and employers are resolved more easily and efficiently. This is particularly relevant for umbrella workers, as you technically have two key parties involved in your work life: the umbrella company (your employer) and the end hirer (client). When disputes arise, they can be complex to navigate.

How Does This Benefit You?

The new laws simplify how disputes are handled and resolved. Whether it’s around pay, working conditions, or holiday entitlements, you can now expect disputes to be addressed more quickly, reducing potential stress or downtime between contracts. This enhanced protection when dealing with conflicts at work provides more security, particularly in a fluid contracting environment.

Comment: With stricter requirements for resolving disputes, umbrella companies now need to ensure that clear processes are in place for contractors. This change will help you, as an umbrella worker, resolve issues more efficiently, provide more security, and ensure disputes are less disruptive to your working life.

Stronger Protections for Pregnant Employees and New Parents

For umbrella workers expecting a baby or planning to start a family, the Employment Rights Bill provides stronger protections. In the past, many workers, especially those on temporary contracts, faced challenges related to maternity and paternity leave.

New Rights for Parents

With the introduction of this Bill, umbrella employees now enjoy enhanced rights to maternity and paternity leave. The Bill expands protections against redundancy for pregnant employees and new parents, meaning your job security is better protected, reducing fears about being replaced or overlooked for future assignments.

Comment: This is a key benefit for umbrella employees, as it means increased job security for those on parental leave. With these changes, umbrella companies are now obligated to provide more robust protection against redundancy, ensuring that new parents are safeguarded during a vulnerable time in their employment journey.

Fairer Treatment for Agency Workers

Although umbrella workers are technically employed by umbrella companies, many of your contracts are obtained through recruitment agencies. The Bill focuses on improving transparency and treatment for agency workers, which positively affects the terms you receive.

Key Change: Transparency on Contract Terms

The Bill strengthens the requirement for clear communication on contract terms and conditions. Agency workers, including those who operate through umbrella companies, are now entitled to receive clear information about pay, holiday entitlement, and job roles from day one. This added transparency helps you make more informed decisions when taking on assignments, ensuring you’re fully aware of your rights and benefits before accepting a contract.

Comment: This increased transparency is crucial for contractors working through umbrella companies. By ensuring all details about pay and conditions are communicated upfront, contractors can feel more confident and empowered when accepting new assignments. It also helps eliminate potential misunderstandings later down the line.

Enhanced Rights for Workers in Non-Traditional Roles

The modern workforce is increasingly diverse, with more workers now employed in flexible, freelance, or gig roles. The Bill introduces a series of provisions to safeguard the rights of workers in these non-traditional roles.

How This Impacts You as an Umbrella Worker

As someone working under an umbrella company, you’re already familiar with the balance of employment rights and flexible contracting. The Bill strengthens these rights by ensuring that umbrella employees are treated fairly across various sectors. With increased protection for workers in non-standard roles, you now benefit from stronger support if your working conditions or rights are challenged.

Comment: With these new protections in place, umbrella companies must now ensure that all contractors, regardless of the sector they work in, are provided with the same level of legal protection. This creates a more equitable environment for umbrella employees, aligning their rights with those of traditional workers.

Expanded Redundancy Protection

Redundancy is a concern for many employees, particularly those working on short-term contracts. The Bill extends redundancy protection to more workers, including those who may not have been previously covered by standard employment law.

What This Means for You

As an umbrella worker, you now enjoy enhanced protection in cases of redundancy, especially if you’re on parental leave or facing discrimination based on your employment status. This provides a stronger safety net, ensuring that you aren’t unfairly dismissed or sidelined from potential opportunities.

Comment: The enhanced redundancy protections introduced by the Bill are especially valuable for umbrella employees. Now, umbrella companies are required to offer the same level of security against redundancy as traditional employers, ensuring that you are protected during uncertain times or economic downturns.

Next Steps for the Make Work Pay Plan

Alongside the legislation, the government has published a ‘Next Steps’ document for the Make Work Pay Plan, outlining its vision for economic growth and job creation. This roadmap, subject to consultations, introduces several key initiatives to further support workers and businesses. These include:

• A move towards simplifying employment status, transitioning to a two-part framework that consolidates worker classifications.
• A Right to Switch Off policy, allowing employees to disconnect from work outside of regular hours, ensuring they have the rest and recuperation necessary to perform their best during shifts
• A strong commitment to end pay discrimination is also part of the plan, expanding the Equality (Race and Disparity) Bill to make it mandatory for large employers to report their ethnicity and disability pay gaps.
• A review the parental and carers leave systems to ensure they are adequately meeting the needs of employers, workers, and their families.

The aim of these forward-looking initiatives, alongside the Employment Rights Bill is reinforce the government’s dedication to creating a fair and inclusive workforce.

Conclusion: A More Secure Future for Umbrella Employees

The Employment Rights Bill represents a significant step forward for the UK’s workforce, particularly for those in non-traditional employment setups like umbrella workers. By expanding flexible working rights, improving dispute resolution, and strengthening protections for parents and agency workers, the Bill offers more security and clarity in your working life.

These changes create a more robust legal framework for umbrella companies to operate in, ensuring that contractors under their employment receive the same protections as other workers. By being aware of these new rights, you can make more informed decisions and feel more secure in your employment arrangements.

At SmartWork, we believe in keeping you informed of these changes helping you navigate the evolving employment landscape. As your umbrella company, we’re committed to ensuring that you receive all the benefits and protections available to you under the law.

For more details or if you have any questions about how these new employment rights affect you, feel free to get in touch with us today.