I wonder how the Employment Rights Act will affect family-friendly leave?

On 10th October 2024, the Employment Rights Bill 2024 (the Bill) was introduced to Parliament, outlining 28 proposed employment law reforms to enhance workers' rights and promote fair treatment in the workplace. Key proposals within the Bill include removing the two-year qualifying period for unfair dismissal claims, extending the time limit for tribunal claims from 3 to 6 months, and implementing stricter regulations around fire-and-rehire practices.

The Bill also suggests significant changes to family-friendly leave regulations designed to provide greater support for employees. This article will explore the current family-friendly leave rules and the proposed updates under the Employment Rights Bill.

Existing Family-Friendly Leave Regulations

As of 2024, UK family-friendly leave policies have evolved to better support employees in balancing work and family responsibilities. These include:

Maternity Leave (ML): Employees are entitled to 52 weeks of maternity leave, split into 26 weeks of ordinary maternity leave (OML) and 26 weeks of additional maternity leave (AML). Maternity pay is provided for up to 39 weeks.

Paternity Leave (PL): Employees are entitled to up to 2 weeks of paternity leave, which can be taken either as separate weeks or as a continuous two-week period.

Shared Parental Leave (SPL): Employees can take up to 52 weeks of shared parental leave following the birth or adoption/surrogacy of a child, allowing parents the flexibility to divide the leave period according to their needs. The total SPL entitlement is 52 weeks, minus any weeks spent on maternity, paternity, or adoption leave.

Parental Leave: Employees are entitled to up to 18 weeks of unpaid parental leave for each child, which can be taken until the child's 18th birthday.

Adoption Leave (AL): Employees adopting through a UK adoption agency are entitled to adoption leave once they are matched with a child and confirm their agreement to the placement. Surrogate parents are also entitled to adoption leave if they meet certain conditions. Only one parent can take adoption leave.

Flexible Working Policies: Flexible working arrangements are also available to help employees achieve a better work-life balance. Employees can request to change their working hours, the days/times they work, or their working location. Employees are allowed to make two requests in a 12-month period and have the right to request flexible working from day one of their employment.

The Employment Rights Act (ERA) and Family-Friendly Leave Reforms

The Employment Rights Bill 2024 proposes several important changes to family-friendly leave policies, including adjustments to parental and paternity leave entitlements:

Parental Leave: Under the Bill, employees will be able to use their parental leave entitlement from the moment they begin employment, eliminating the current requirement to wait until they have worked for their employer for a year.

Paternity Leave: The Bill also removes the 26-week service requirement for paternity leave, granting employees a day-one right to take paternity leave. Additionally, the Bill will allow employees to take paternity leave and receive pay after using shared parental leave, a flexibility not currently allowed under existing laws.

Some more substantial proposed changes include:

Bereavement Leave: The Bill proposes introducing a right to at least one week of unpaid bereavement leave for employees after losing a loved one.

Dismissals: Recent legal changes have prioritised redeployment opportunities for pregnant employees and those returning from family leave. The Bill will allow the government to introduce regulations extending protections against dismissals during pregnancy, maternity leave, and other family leave. Although specifics are still unclear, the explanatory notes suggest that the regulations may eventually ban dismissals for employees who are pregnant or returning to work within six months of family leave.

Overall, the Bill presents a comprehensive review of the UK family leave system and suggests that the current system does not adequately support working parents. While further details are pending, the government has indicated a commitment to ensuring that parental leave reforms provide more substantial support for working families.

The Impact of Family-Friendly Leave Changes on Employers

The proposed changes under the Employment Rights Bill 2024 are expected to significantly impact employers across the UK. One of the primary concerns for businesses is the potential financial burden. If proposals, such as extended periods of family-friendly leave, are passed into law, employers may face increased financial obligations. Businesses will need to plan for higher statutory pay rates and potentially longer durations of leave, which could affect operational costs and profitability.

Additionally, employers must stay informed about new obligations, such as additional forms of leave, updated policies on flexible working, and rules regarding employee returns after leave.

Extended family-friendly leave may also impact workplace productivity. Prolonged employee absences will require employers to plan for temporary work coverage and redistribute responsibilities among remaining staff members. Employers might consider hiring temporary workers or adjusting team structures to manage work during these times.

Despite these challenges, introducing more robust family leave protections could ultimately enhance productivity and benefit the wider economy. When employee well-being is prioritised, it often leads to a more positive work environment, fostering greater job satisfaction and improving overall workplace morale.

Conclusion

The Employment Rights Bill 2024 is set to introduce significant changes to family-friendly leave, and employers must ensure they are fully prepared. Having the right HR policies in place will be essential to maintaining compliance and supporting both employees and business operations.

If you have any questions about how the Employment Rights Bill may impact your organisation, our Peace of Mind Team can provide tailored advice, while our Document Audit Team can assist in drafting and updating workplace policies. Additionally, our Make Work Pay Programme offers a structured, fixed-price solution to help businesses comply with the new legislation. Delivered over six months, this expert-led programme guides employers through the upcoming changes, ensuring they are well-equipped for the future.

For more information, contact our Peace of Mind Employment Team on 023 8071 7717 or email employment@warnergoodman.co.uk.