Managing estate workers: key changes in the Government’s Employment Rights Bill

In October 2024, the Government published its Employment Rights Bill which, alongside its Next Steps to Make Work Pay document and the subsequent Amendment Paper, sets out Labour’s plans to implement sweeping employment reforms aimed at prioritising fairness and family-friendly rights. The Bill follows a variety of other employment-focused changes over the past year, including legislation permitting rolled-up holiday pay for holiday years starting from 1 April 2024 (which will be a welcome change to estates with seasonal workers). In this article, we consider some of the key changes and how they may impact the management of estate workers.

Unfair dismissal

One of the Bill’s most significant proposals is to remove the current requirement for an employee to have at least two years’ service before they can bring a claim for unfair dismissal. For a dismissal to be fair, the reason must be one of the potentially “fair” reasons set out in the Employment Rights Act 1996: misconduct, capability, redundancy, a legal reason or “some other substantial reason”, and a fair process must have been followed.

This will seriously impact employers’ ability to dismiss staff (without a fair reason and/or a fair process) within the first two years. There may be some flexibility, as the Bill also proposes an “initial period of employment” of between three and nine months, during which a simplified dismissal procedure may be acceptable. Although more detail is awaited, this is still likely to be more onerous for employers than at present.

These changes are likely to be of particular concern to estates where teams are small and achieving a combination of people who can work together is crucial. Workers may often “live-in” on the estate too, which adds an extra dimension. Increased care will therefore need to be taken during the recruitment process to select the best applicant. New recruits will also need to be managed proactively when they do start, to ensure that the new procedures (whatever they may be) are followed if there are problems. Fixed-term contracts could also be considered, where appropriate, for short-term seasonal work.

Harassment

Since 26 October 2024, employers have been required to take reasonable steps to prevent sexual harassment in the workplace, including by third parties. The Bill plans to strengthen this, making employers take all reasonable steps. Further, if an employee successfully brings a claim for discrimination and is awarded compensation for their losses, they can then be given an additional 25% of that compensation (without proving additional loss) if they show that their employer failed in its duty to prevent sexual harassment. Disclosures regarding sexual harassment will also be considered “protected disclosures” for the purposes of whistleblowing.

Requiring employers to take “all reasonable steps” to prevent sexual harassment, including by third parties (over which the employer may have little control), is a very high bar and particularly challenging for rural estate employers where visitors, guests and contractors may all be present. Appropriate training and policies are vital to protect employers in this area.

Family leave

The Bill will extend current family leave rights in several ways. It will become unlawful to dismiss an employee who has been pregnant within six months of their return to work, except in specific circumstances. Parental and paternity leave will become “day one” rights; at present an employee needs 26 weeks or one year’s service, respectively, before they benefit from them. Additionally, bereavement leave will be extended beyond parents to create a more general right. Again, the detail is yet to be confirmed.

These changes may be particularly significant for smaller rural estates, for whom gaps in staff coverage can be harder to manage than for larger employers, with a larger pool of employees to draw on. It can be difficult to find specialists with the skills required – such as gamekeepers or foresters – to fill gaps, especially where the work may only be seasonal. Regular communication and encouraging staff to give as much notice as possible of any intention to take statutory leave is likely to be helpful for employers.

Flexible working

Since April 2024, the Bill has made the right to request flexible working a day one right for all employees. Employers must respond to requests within two months and consult with employees before refusing a request. Employers must also consider a request properly and will only be able to refuse if it is “reasonable”. Employers will need to explain their reasoning to employees, including reference to one of the eight permitted business reasons for refusal; these include factors such as cost, impact on performance and difficulties hiring extra staff to cover relevant duties.

It is important to remember that the right is for employees to request flexible working, not to be given it. In the context of rural estates, there are many cases where it may well be reasonable to refuse certain types of flexible working request. Clearly, working from home is not practical for a gamekeeper, nor a request to job-share a role which may make the role either financially or logistically unviable due to the lack of suitable workers. Each request should be considered on a case-by-case basis, with reasons for any refusal being fully explained and documented.

Statutory Sick Pay (SSP)

The Bill removes both the waiting period and the previous earnings limit, which required workers to be earning a minimum amount per week before receiving SSP. All workers will now be entitled to SSP from their first day of illness (rather than the fourth day) and there will be a consultation on the rate of SSP. This is likely to increase costs for a business, and it will be important to ensure any sickness and absence policies are up to date and sufficient.

Time limits

The Amendment Paper produced alongside the Bill proposes to increase the time limit for bringing Employment Tribunal claims from three to six months. Taken together with day one unfair dismissal rights, this is likely to create increased uncertainty for employers and a higher number of claims overall. Following the ending of any employment, therefore, estates should be aware of any potential claims and keep records of the circumstances surrounding any termination or exit for at least six months (or longer).

Anticipated timeline and next steps

Although the draft Bill has been published, much of the detail relies on consultation and secondary legislation and is currently unknown. As such, the new laws are not expected to take effect for some time: the majority are expected to come into force by April 2026, with unfair dismissal “day one” rights coming into effect “no sooner” than Autumn 2026 (according to the Government’s factsheet). As with all draft bills, this could change.

That said, starting preparations early and consulting with legal and HR professionals now will help estates ensure a smooth transition when the new obligations do come in. Whilst nothing is set in stone, the general tone of the changing landscape is clear: estates should take steps now to review policies, sure up recruitment processes and assess the future needs of the workforce to put the business in the best position.

This article is part of the Rural Estates Newsletter 2025, click here to read.

This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.

© Farrer & Co LLP, February 2025