The UK government is proposing ‘the biggest upgrade to employment rights for a generation’, which will introduce significant changes to workers’ rights and employer obligations across everything from sick pay to trade union membership.

Propertymark has rounded up these changes which may impact agents and their businesses.

Flexible Working Rights 

If the Bill becomes law, employees will have the right to request flexible working from their first day on the job, and employers will have an obligation to give valid reasons for refusing requests.

Acceptable grounds for refusal include potential added costs, impact on meeting client demands, or difficulty reallocating work among other staff. For many agents, the shift to greater flexibility could necessitate adjustments in operational planning.

Statutory Sick Pay (SSP) and Family Leave 

The proposals include extending SSP to all employees and removing the current minimum earnings threshold of £123 per week. This means even part-time or lower-wage employees will be eligible for a portion of SSP if they cannot work due to illness.

For family leave, the Bill introduces bereavement leave from day one, with leave length depending on the employee’s relationship with the deceased. Paternity leave eligibility requirements will also be relaxed, enabling employees to take it before Shared Parental Leave.

Unfair Dismissal and Redundancy Rules 

Protections will now be available from day one of employment in specific cases, including dismissal due to pregnancy or family leave. Additionally, redundancy consultations must consider the entire workforce, not just single locations. For large agencies, consultation requirements will apply across all branches if redundancies reach 20 or more across the company.

Trade Union Access 

Employers must provide workers with information on their right to join a trade union. Trade unions will also gain rights to access workplaces to engage with employees.

Zero-Hours Contracts 

The Bill mandates that employees must be given guaranteed weekly hours based on their first 12 week working pattern, with the worker’s agreement. This change aims to bring more stability to employees with unpredictable schedules.

Employers must provide reasonable notice if they require an employee to work additional shifts. If shifts are cancelled or rescheduled, then compensation must be paid so workers are protected from lost income due to last-minute changes.

Sexual Harassment Protections 

Employers must take ‘all reasonable steps’ to prevent workplace sexual harassment, including by third parties, which is a higher standard than the current “reasonable steps” requirement. Employers should be prepared for future regulations that may specify required actions, such as publishing policies and implementing reporting systems.

Promoting Equality and Transparency 

The Bill introduces new equality measures, including requirements for gender pay gap reporting among outsourced workers and the creation of Equality Action Plans. The plans will need to outline how the agency intends to address gender pay gaps and support employees dealing with menopause.

New Fair Work Agency 

The Agency will be set up within the Department for Business and Trade as a one-stop-shop where workers and employers can go for help. It will also take over the enforcement of employment rights and have the power to inspect business premises and documentation.

Next steps 

As the Bill is in the early stages of the Parliamentary journey, it is not expected to come into force until 2026. Public consultations are planned to take place in 2025, and if there are significant amendments to the Bill this may delay the process further. Plus, when it becomes law, it may require further regulations before anything changes for employees and employers.

Nevertheless, the Bill is a comprehensive update to employment law and provides stronger protections for employees while also ensuring employers meet high standards. Agents should start reviewing their current employment policies and begin to make changes now which will help them comply with these new requirements once they come into force.

Support for members 

Propertymark has an Employment Advisory Service which includes legal support from compliance specialists to help Principal, Partner or Director (PPD) Propertymark members understand their responsibilities.