Employment Rights Bill – What It Means For The Agricultural Sector

What is the Employment Rights Bill?

On 10 October 2024, Labour introduced the Employment Rights Bill as part of its pledge to “Make Work Pay.” The Bill contains 28 major reforms to the UK’s employment laws – including day one unfair dismissal rights, limits on zero-hours contracts, and a ban on fire-and-rehire practices.

The Bill has now reached its third reading and is expected to receive Royal Assent by Autumn 2026 (no later than October 2026). The changes will roll out in stages during 2026 and 2027.

While these reforms will touch every sector, some industries will feel the impact more than others. For agriculture, with its seasonal work, flexible staffing models, and demanding conditions, the changes could be significant. Here’s what you need to know:

Day one unfair dismissal rights

Now, employees need two years’ service before they can claim unfair dismissal. That means employers can usually dismiss newer staff with relative ease.

The Bill would change that. From day one, employees will be protected, and employers will need to show a fair reason for dismissal and follow a proper process.

There’s talk of a statutory probationary period of 6-9 months, but whether that will make it into the final version remains to be seen. Either way, agricultural employers should review contracts, policies, and training now. Dismissing a “protected employee” without care could prove risky, and expensive.

Zero-hours contracts and shift rights

Zero-hours contracts won’t be banned outright, but the Bill will restrict their use. That’s a big deal for agriculture, where seasonal labour often depends on these flexible contracts.

In practice, hours worked will need to be reviewed every 12 weeks. Employers will then have to offer a contract (or amend an existing one) to reflect the actual hours worked. The aim is to give workers predictable schedules and security.

This means agricultural employers will need to rethink recruitment practices, moving towards guaranteed hours, more stable contracts, and fairer notice on shift changes or cancellations.

Statutory sick pay (SSP)

The Bill also reforms sick pay:

• SSP would start from day one of sickness (not day four).
• The current three-month qualifying period for workers would be removed, making SSP available to all workers immediately.

In agriculture, many employees are entitled to Agricultural Workers’ Sick Pay (AWSP) instead, provided they’ve worked continuously for 52 weeks with the same employer. AWSP is unaffected by the Bill, and it remains the better option for those eligible (full pay for up to 13 weeks, compared to SSP at £118.75 a week).

Still, because all workers will now qualify for SSP from day one, this change could increase costs for agricultural businesses.

The Employment Rights Bill is set to bring the most sweeping employment reforms in decades. For agriculture, the combination of stricter dismissal rules, changes to zero-hours contracts, and enhanced sick pay provisions will require careful planning.

If you’d like advice on how these changes could affect your business, our specialist Employment Team is here to help.

All information is correct at the time of writing. Please check the latest legislation or Government guidance for up-to-date details.