With the Employment Right Bill expected to become law later in 2025, Emma-Louise Hewitt, partner and head of Employment Law at law firm Sydney Mitchell, outlines the key aspects of the Bill, and sets out practical tips to help employers prepare for the changes.
What is the Employment Rights Bill
The Employment Rights Bill is one of the most significant overhauls of UK employment law in decades. Introduced on 10 October 2024, it is the cornerstone of Labours ‘Plan to Make Work Pay’.
The Employment Rights Bill represents a major shift in the balance of workplace protections. Its main aims are to modernise and strengthen the UK’s employment law framework, focusing on areas seen as outdated or unfair, such as “zero-hours” contracts, “fire and rehire” practices, and lengthy qualifying periods.
It is also intended to improve job security, strengthen protections for vulnerable workers, and modernise workplace rights for today’s economy.
What key provisions are in the Employment Rights Bill?
The Bill covers many areas. Of these, there are seven changes will potentially have the greatest impact for employers. However, it should be noted that the Bill contains many other specific measures, many of which will be detailed in secondary legislation and regulations:
Zeros hour contracts
The Bill aims to end traditional “zero hours” models and will create rights to guaranteed hours for workers who regularly work set patterns, require reasonable notice of shifts and provide pay for short-notice cancellations. Agency workers are explicitly within scope of these protections.
Fire and rehire practices
Employers who dismiss workers simply because they refuse contractual changes and then offer re-engagement on lessor terms (“fire and rehire”) will face new limits. Dismissals for refusing such changes are likely to be treated as automatically unfair in many cases, subject to narrow business-necessity exceptions.
Day-one unfair dismissal protection
Currently, employees normally need two years’ service to bring an unfair dismissal claim. The Bill removes that qualifying period so the right to not be unfairly dismissed becomes a day-one protection. To balance this, the government will introduce a statutory probation period employers can use to assess suitability. However, this is still under review with debates ongoing as to whether this will be a day-one right or have a six-month qualifying period.
NDAs and confidentiality
The Bill contains measures to restrict or render void NDAs and confidentiality clauses that are used to silence victims or witnesses of harassment and discrimination, while preserving legitimate commercial confidentiality. Employers will need to review settlement agreements and grievance confidentiality terms.
Family and leave rights
New day-one entitlements to some family leaves, expanded parental leave, and specific protections (for example, proposals on bereavement leave following pregnancy loss) are included. The Bill also aims to modernise flexible working rights.
Trade union and industrial relations rules
The Bill proposes simplifying trade union recognition, strengthening access rights and rolling back some elements of the Trade Union Act 2016 and subsequent measures, with potential implications for collective bargaining and industrial action law. Related protections for employees who take strike action are also being reviewed.
Enforcement, labour market regulation and new duties on employers
The Bill introduces stronger enforcement powers for regulators, new equality duties on employers, and measures targeting supply-chain treatment of workers (for example, in public contracts). It also contains reforms on tips, umbrella companies and the status/treatment of agency workers.
When are the Employment Rights Bill changes expected to happen?
The government has published an implementation roadmap that gives an indicative timetable on when Employment Rights Bill changes are expected to come into effect.
It’s important to note these dates are purely indicative. Timings remain subject to parliamentary amendment, the passage of the Bill into law (Royal Assent), and the completion of secondary legislation and consultations. At the date of writing this article, the debate in the House of Lords on the Bill is ongoing and it has been confirmed that the Bill is being sent back to the House of Commons.
Based on the government’s current roadmap and legal commentary, the broad picture is:
- Autumn 2025 (shortly after Royal Assent): Subject to Parliament, the Bill is expected to receive Royal Assent in autumn 2025. Some measures and structural changes may become legally possible then, but most measures are phased in later.
- April 2026: The government has signalled that an initial tranche of reforms will come into force in spring 2026. These include reforms such as changes to Statutory Sick Pay (“SSP”) eligibility and certain parental leave changes (see official roadmap for detail).
- Late 2026 (around October 2026): A further set of measures such as duties to prevent sexual harassment, tipping protections, and restrictions on fire and rehire, are expected to be implemented around this period, again subject to secondary legislation.
- 2027 and beyond: Major structural reforms, including day-one unfair dismissal protection, flexible working changes, the ban/limits on zero hours contracts, and regulation of umbrella companies, are expected to come into force later, often during 2027. Detailed regulations and consultations will run through 2025/2026 to prepare for these measures.
How should employers prepare for the Employment Rights Bill?
Preparation is essential for employers ahead of the Employment Rights Bill receiving Royal Assent. Employers that act early will both reduce legal exposure and help preserve positive workplace relationships as the reforms roll out in stages between 2025 and 2027.
Below is a practical, prioritised checklist to help employers reduce legal and business risk and to make the transition smoother.
1. Carry out a full contract and policy audit
- Identify any zero-hours, casual and agency arrangements and map who would be affected if guaranteed hours rules apply.
- Review probation clauses, disciplinary/dismissal policies and existing settlement/NDA templates. Make a list of clauses that may become unenforceable (for example, NDAs covering harassment).
- Audit flexible working, family leave, SSP and bereavement policies.
2. Model the cost and operational impact
- Look at the impact of increased guaranteed hours, extra leave, SSP changes and potential tribunal exposure from day one/shorter unfair dismissal rights. Update payroll and budgeting to reflect possible higher headcount or higher paid hours.
- Engage with finance and workforce planners early as guaranteed hours could change rostering and temporary worker strategies.
3. Update HR processes and training
- Undertake training for managers and employees in respect of the changes applicable to them.
- Review and amend grievance, harassment and whistleblowing procedures, ensuring victims can speak up and that confidentiality clauses are lawful.
4. Prepare for probation and performance frameworks
- •Draft or refine statutory probation provisions (content, length, appeal/notice periods) in line with expected rules. Ensure appraisal and capability processes are robust and well documented.
5. Engage with employee representatives and unions
- If you have unionised staff or collective bargaining arrangements, proactively engage to understand how recognition and access changes may affect workplace relations. Build good faith processes for negotiation.
6. Update systems and record-keeping
- Ensure HR systems can track guaranteed hours, family leave from day one, SSP changes and any new reporting duties. Good records will be vital for defending unfair dismissal claims and demonstrating compliance.
7. Get legal and professional advice
- Use specialist employment lawyers or trusted external advisers to interpret the final statute and draft template documents. Monitor official guidance on the government’s factsheets and roadmap.
This article was originally published by The Gazette on 5 November 2025 – see: https://www.thegazette.co.uk/all-notices/content/104415
About the author
Emma-Louise Hewitt is Partner and Head of the Employment Law Department at Midlands law firm Sydney Mitchell LLP. Specialising in all areas of employment law, Emma-Louise acts for both employees and employers in a range of areas, including drafting contracts, handbooks, policies and procedures, advising on potential Employment Tribunal claims, and providing general day to day employment law advice and support to business owners, managers and HR advisors. Emma-Louise is President of The Solihull Chamber of Commerce.
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