7 Key Family-Friendly Reforms Employers Need to Know

What Labour’s Plan to Make Work Pay means for your HR and compliance strategies.

As part of our commitment to helping organisations stay ahead of change, Axiom GRC is tracking key proposals currently shaping the future of employment law. One of the most significant developments comes from Labour’s Plan to Make Work Pay, which sets out a wide-reaching agenda to reform workers’ rights.

At the heart of these proposals are family-friendly reforms – changes designed to strengthen employee entitlements, introduce new leave rights, and increase job security for working parents and carers.

While many of the proposals are still moving through the parliamentary process via the Employment Rights Bill, others are expected to come into effect through consultations, code updates, and non-legislative routes.

To help you prepare, our experts at WorkNest, part of Axiom GRC, have summarised seven reforms employers should have on their radar.

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1. A new right to bereavement leave

At present, there’s no statutory entitlement to bereavement leave in the UK, except for parents who lose a child after 24 weeks of pregnancy or under the age of 18. Labour is proposing to change this by introducing a day-one right to at least one week of bereavement leave for all employees who lose a loved one.

While further details (such as pay, qualifying relationships and duration) will be set out in secondary legislation, this reform would represent a significant step toward more compassionate and supportive workplace policies.

2. Extending bereavement support for early pregnancy loss

Labour is also looking to extend bereavement leave to cover pregnancy loss before 24 weeks. Whether through miscarriage, ectopic pregnancy, medical termination, or unsuccessful IVF, this reform would acknowledge the emotional toll of early pregnancy loss and provide a much-needed layer of support during a distressing time.

3. Strengthening the right to flexible working

In April 2024, UK law changed to give employees the right to request flexible working from day one. Labour plans to go further – by making flexible working the default and introducing a test of reasonableness that employers must meet if they wish to refuse a request.

While employees will still need to initiate the request, businesses will face greater scrutiny over the grounds for refusal.

4. Parental leave from day one

Currently, unpaid parental leave is only available to employees with 12 months of continuous service. Labour is proposing to remove the qualifying period, allowing eligible employees to take up to 18 weeks’ unpaid leave per child from day one of employment.

Additionally, a full review of prenatal leave is also on the cards, which could lead to further updates down the line.

5. Day-one right to paternity leave

Under existing rules, employees need at least 26 weeks’ service to qualify for paternity leave. Labour intends to make paternity leave available from the first day of employment.

There’s also a proposed tweak to the shared parental leave (SPL) rules. Under the new plan, employees who take SPL will no longer lose their right to take paternity leave – giving families greater flexibility in how they balance time off.

6. Stronger protections for pregnant employees and new mothers

Labour’s plan includes making it unlawful to dismiss a woman during pregnancy, maternity leave, or within six months of returning to work, except in limited circumstances. This is aimed at closing the gap between rights in theory and protections in practice – and will require employers to strengthen their approach to managing maternity-related dismissals and redundancies.

7. Review of carer’s leave – with pay on the horizon

As of April 2024, unpaid carer’s leave became a statutory right. Labour has committed to reviewing this policy – with a view to introducing paid carer’s leave in the future.

This could prove transformative for employees who support loved ones with long-term care needs, and it may prompt significant changes to absence management policies and employee benefits strategies.

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What this means for employers

These proposed reforms – many of which create day-one employment rights – will require employers to review and revise their HR policies, contracts and internal procedures. From managing leave entitlements to handling flexible working requests, your organisation may need to adapt quickly to stay compliant.

Fortunately, our colleagues at WorkNest, Axiom GRC’s employment law and HR compliance experts, have created a clear, practical guide to help employers prepare.

Need support adapting to the proposed reforms?

WorkNest is ready to help you review, update and implement compliant, family-friendly policies that support both your people and your business.