Employment Rights Bill: What It Means for Agricultural Employers
The Employment Rights Bill is a proposed piece of UK legislation that aims to enhance workers’ rights. The Labour Government have promised a “new deal for working people” under their motto of "Make Work Pay". The Bill is currently being scrutinised in the House of Commons, working towards royal assent. Once implemented, this bill will represent the biggest update in employment rights for a generation. This article will summarise the changes that will have the greatest influence on agricultural employers.
- These changes will impact all employers, regardless of their size. It is important that employers understand what is being proposed and prepare accordingly.
- These changes will come into force gradually. For the changes that relate most closely to agriculture, changes will be noticed from April 2026 and run into 2027.
Ban on Exploitative Zero-Hours Contracts
Zero-hours contracts are often used on sites with distinct seasonal activity. If the ban goes ahead as is proposed, employers will need to offer a guaranteed hours contract to all eligible workers reflecting the hours they regularly work over a reference period. It is expected the reference period will be 12-weeks. Individuals will be able to reject an offer of guaranteed hours and remain on a zero hour contract if they wish This change will also require employers to provide reasonable notice of hours/shifts or cancellations of hours. The specifics of what will be deemed ‘reasonable’ for notice is awaited.
The concern is that if the 12-week reference period fell at a seasonal peak such as lambing or harvest then the average numbers of hours could easily end up artificially high. Therefore, farming businesses may wish to look at alternatives such as minimum hours contracts, average hours contracts or temporary contracts. The current road map indicates the ban is due to be released in 2027.
Probationary Periods
These typically cover the first three to six months of employment and can be extended once if required to encourage employees to improve while still protecting the business. The Employment Rights Bill wants to limit probation to a maximum of 9 months. Under a probationary period, the employer needs to give fair notice of any issues to the employee and written notification if the period needs extended. During probation, notice periods are just one week for both employer and employee. This makes termination of a contract much easier compared with out with the probation period. With the other changes coming in under the bill, this nine-month probation period will be a key protection for employers against unfair dismissal claims and all agricultural employers should ensure they have probationary periods included in their contracts.
Unfair Dismissal
If an employer does not follow the fair and reasonable process for dismissal, generally an employee cannot raise an unfair dismissal case at tribunal unless they have worked with the employer for two years barring some exceptions due to the nature of the dismissal. This has been in place to protect employers. The Labour Government feels this is too much protection for employers and proposes the right to unfair dismissal claims from day one. This is why the 9-month probation period mentioned above will be critical protection for an employer.
Labour is proposing this is changed via statute, which means it would be difficult to reverse under future Governments. The change is planned for 2027. When a claim is made, the employer needs to provide records and evidence in great depth. Therefore, it is vital that employers keep written records including contracts and notifications of notice/issues. The best practice to follow when a dismissal is required can be found at ACAS.
Flexible Working
Since April 2024, employees have had the right to request flexible working from their first day of employment and may submit two requests per year. The employer is under a duty to try and adjust be able to meet the request but is not required to agree to the request. Under the Employment Rights Bill, expected in 2027, any rejection must be based on one (or more) of the eight legal reasons that you can refuse a flexible working request. Where the employer wishes to reject, they will need to consult with the employee and follow a specified process which will be set out in secondary legislation. It would be advised to ask for all requests in writing, take notes in meetings and have a formal letter to outline the confirmation, rejection, or alternative offer.
Parental Rights
The bill is looking to enhance parental rights by making paternity and maternity pay a day one right from April 2026. This means there would be no minimum weeks that would need to be worked before a worker was entitled to maternity pay. Statutory paternity pay is two weeks leave at the statutory rate.
Statutory Sick Pay
Currently, Statutory Sick Pay (SSP) is paid from the fourth day of absence and employees are entitled to 28 weeks. The bill will change that to the first day of the absence from April 2026. Within agriculture, Agricultural Sick Pay (ASP) applies. The criteria for ASP is stricter in that an employee must have continuously worked with that employer for at least 52 weeks. If applicable, this entitles employees to 100% of their wage for 13 weeks. This is inclusive of the employees right to SSP. For example, when a worker runs out of ASP, the SSP can then continue for another 15 weeks. Any workers who do not meet the criteria for ASP are still entitled to SSP from day one under the proposed change.
5 Top Tips
- Be prepared for the changes ahead of schedule.
- Ensure probation periods are included within contracts.
- Keep thorough written records– contracts; logging issues with employees; meeting notes. Verbal agreements and records do not carry the same weight in law.
- Familiarise yourself with the eight legal reasons for refusing a flexible working request.
- Ensure that workers receive the correct sick pay – whether under ASP or SSP.
Mhairi Dalgliesh, Agricultural Consultant, Mhairi.Dalgliesh@sac.co.uk
Unearthed is the exclusive SAC Consulting members' monthly newsletter. Unearthed offers insights and tips from our experts on what we think is in store for farming and crofting in the coming months in order to protect and enhance your business.
Posted by Unearthed News on 19/08/2025
