The Employment Rights Bill: what does it mean for older workers?

Few employment reforms in recent years have attracted as much attention as the Employment Rights Bill. Introduced in October 2024 as part of the government’s Plan to Make Work Pay, it has divided opinion across business, political, and worker’s rights groups.

Supporters say the bill will make work fairer and help people stay in employment for longer. Critics worry it could add costs and paperwork for employers already struggling.  

The bill covers many areas of employment, including sick pay, parental leave, trade union rules, dismissal procedures, and flexible working. But not all changes will happen straight away. Most measures will go through consultation first, with the majority expected to take effect from April 2026, and some not until 2027.

So, which changes matter most for older workers? 

Sick pay

Under the new rules, Statutory Sick Pay will be available from the first day of illness rather than the fourth. The lower earnings limit will also be removed, meaning more workers will qualify.

These changes may be particularly relevant for older workers managing health issues. Removing the lower earnings limit could also benefit part-time and lower-paid workers – groups where older workers are disproportionately represented. 

Menopause action plans

The menopause can have a major impact on wellbeing and work. Recognising this, the bill will require large employers to develop menopause action plans, outlining how they will support affected employees. These plans are not expected to become mandatory until 2027.

As our Age-Friendly Employer Pledge highlights, small steps – like normalising open conversations and offering menopause education for everyone – can make a big difference. The new requirement could help embed these practices more widely, ensuring that support for employees going through the menopause becomes part of workplace culture rather than an afterthought.  

However, since smaller organisations will not be covered by this requirement, government should ensure they have sufficient guidance and resources to encourage them to voluntarily provide greater menopausal support. Failing to do so could risk widening existing differences in support between employers of different sizes. 

Flexible working

Since April 2024, employees have been able to request flexible working from day one in a job. The bill goes a step further. If an employer refuses a request, they will have to give a written reason. The legal reasons for refusal will stay the same, but this change could make the process clearer and fairer.

A consultation this winter will decide how the rule is put into practice, with changes expected in 2027. Flexible working is particularly valued by older workers. Our research shows that it is the number one factor they say would help them stay in work for longer, especially those managing health conditions or caring responsibilities. The Department for Business and Trade’s own impact assessment of the Bill supports this, suggesting that improved flexibility could help more people in this age group stay in or return to work, helping employers to draw from a wider pool of workers.

However, the bill stops short of other changes that could potentially make an even bigger difference. For instance, it does not include any new rights to Carer’s Leave, although the government has said it will review this in the future, both in paid and unpaid form. At the Centre for Ageing Better, ultimately we would want to see employees receive two weeks’ paid carers leave as a guaranteed right.

Zero Hour contracts 

The second-largest group, after those aged 16–24, is people aged 65 and above, many of whom value flexibility but also seek greater income security.

A right to request guaranteed hours could strike a balance between the two, helping them stay in work for as long as they want or need to – though it would also come at a cost for employers, who will need to absorb the administrative cost of the measure as well as the cost of decreased flexibility. 

Other changes

The bill introduces wider reforms, including: 

• A new code of practice on ‘fire and rehire’ and expanded protections from unfair dismissal
• Expanded trade union rights and simplified rules for industrial action
• A new Fair Work Agency to oversee compliance. 

The government expects these measures to help groups who often face disadvantage, including older, female, disabled, and minority ethnic workers. But the results may vary. While stronger enforcement could reduce unfair treatment, age discrimination is still hard to prove. Around 10,000 employment claims each year involve age discrimination, but most are settled early because of the cost and complexity. 

The bill also allows for possible Fair Pay Agreements in sectors such as adult social care, where many workers are older and female. These could improve pay and job security – but only if they receive sufficient funding.

Looking ahead

The Employment Rights Bill is a major step toward more flexible and inclusive work. For older workers, changes to sick pay, menopause support, and flexible working could make it easier to stay in good-quality work for longer.

Supporters, including the government, hope the bill will boost productivity and economic growth, while critics worry it could increase costs and reduce jobs. Research from the Resolution Foundation, the Work Foundation, and others shows the reality is more nuanced. The bill could significantly improve job conditions for those who need it most, although many employers – including many organisations signed up to the Age-Friendly Employer Pledge – already follow similar practices.  

The government estimates that the policies in the Bill could impose additional costs on business between £1 and £5 billion per year, , potentially leading to up to 11,000 job losses – a relatively small number compared with the millions of people in work.

Ultimately, the success of these reforms will depend on clear guidance, adequate funding, and effective enforcement. Most measures won’t take effect until 2026 or later, giving employers and employees time to prepare and participate in consultations.

For now, older workers and employers should stay informed and share their views to help ensure these reforms deliver fairer, more supportive work for everyone.