New workers’ rights shake-up to impact estate agencies

Employees working for property businesses will be able to claim unfair dismissal from day one of a new job, under a new Government Bill.

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A blueprint for improved workers’ rights is set to shake-up the relationship between property firms and employees.

The Government’s new Employment Rights Bill includes 28 measures to improve working conditions, including the right to claim unfair dismissal from day one of a new job.

The existing minimum period of two years before an unfair dismissal claim can be made via an Employment Tribunal will be scrapped. There will though be a probation period of up to nine months for new hires, during which staff can be dismissed under a ‘lighter touch’ process.

Sick pay changes

The measures are not likely to take effect until autumn 2026 at the earliest due to consultations. Other aspects of the bill include statutory sick pay from the first day of illness, ending the current three-day waiting period.

Rights to paid and unpaid paternity leave will be from the first day of employment, as opposed to the current 26 or 52 weeks respectively to receive the benefits. And there will be a new statutory right for bereavement leave.

Flexible work requests

Where employers refuse flexible working requests they will have to demonstrate the decision is reasonable against eight criteria.

And workers on zero or short-hours contracts will have to be offered a contract based on the hours worked in a 12-week period; receive notice of shift patterns and receive pay for short-notice cancellation.

Right to switch off

The ‘right to switch off’ has been left out, with a commitment to consider it at a later date.

Jonathan Reynolds MP
Jonathan Reynolds MP

Business Secretary Jonathan Reynolds says: “The best employers know that employees are more productive when they are happy at work.

“That is why it’s vital to give employers the flexibility they need to grow whilst ending unscrupulous and unfair practices.”

Anthony Hesse, MD, Property Personnel

Anthony Hesse, MD of Property Personnel, told The Neg the bill represented the biggest reform of employment law in the 36 years he has been running his recruitment firm.

“Even though the details of how things will actually change still need to be worked through, it looks like these changes will lead to the improvement in working lives for millions of people which surely has to be a good thing?

These changes will favour employees rather than employers.”

“With regards to the property industry, these changes will favour employees rather than employers, in the same way that the Renters’ Rights Bill favours tenants over landlords,” he says.

“My concern is that some of the changes will disincentivise companies to hire, especially where employees will have protection from unfair dismissal from day one rather than after two years.

“In my opinion, it is essential that this reform has a probation period to give firms the confidence to take a chance on people. In addition, changes in SSP [Statutory Sick Pay] and parental leave, for example, will put huge financial pressures on businesses, especially small ones, so it would be good to see government sharing this cost.”

More on the Employment Rights Bill here. 


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