What You Need to Know About the Employment Rights Bill
The Employment Rights Bill represents one of the most significant updates to UK employment law in decades. Expected to become law later in 2025/2026, it aims to modernise and strengthen workplace protections while improving job security and fairness across the employment landscape.
Introduced in October 2024, the Bill is designed to reform practices considered outdated or unfair, such as zero-hours contracts, “fire and rehire” arrangements, and long qualifying periods for employment rights. It also seeks to modernise leave entitlements, enhance flexible working options, and provide stronger enforcement measures to ensure fair treatment for all workers.
Key provisions
Several reforms within the Bill are expected to have a substantial impact on employers:
- Zero-hours contracts: Introduction of guaranteed hours for regular workers, fair notice of shifts, and pay for short-notice cancellations.
- Fire and rehire: Dismissals arising from refusal to accept contractual changes may be deemed automatically unfair, with limited exceptions.
- Day-one unfair dismissal rights: Employees will gain protection from unfair dismissal from their first day of employment, supported by new probation period rules.
- Confidentiality clauses: Restrictions on the use of non-disclosure agreements to prevent victims or witnesses of harassment and discrimination from speaking out.
- Family and leave rights: Day-one eligibility for family and parental leave, expanded bereavement provisions, and greater flexibility in working arrangements.
- Trade-union relations: Simplified recognition procedures and enhanced protections for employees participating in industrial action.
- Employer duties: Stronger enforcement powers, new equality obligations, and clearer responsibilities for fair treatment within supply chains.
Preparing for change
The Bill is expected to receive Royal Assent in autumn 2025, with phased implementation through 2026 and 2027. To prepare effectively, employers should take proactive steps to ensure compliance and reduce potential risk.
Below is a practical, prioritised checklist to help employers reduce legal and business risk and make the transition smoother:
- Carry out a full contract and policy audit – Identify zero-hours, casual, and agency arrangements; review probation clauses, disciplinary procedures, and NDAs; audit flexible working and leave policies.
- Model cost and operational impact – Assess implications of guaranteed hours, leave changes, and shorter unfair dismissal rights; update payroll and workforce planning.
- Update HR processes and training – Train managers, review grievance and whistleblowing procedures, and ensure lawful confidentiality clauses.
- Prepare for probation and performance frameworks – Define probation terms, notice periods, and performance reviews.
- Engage with employee representatives and unions – Maintain open communication to manage upcoming legislative changes.
- Update systems and record-keeping – Ensure HR systems can monitor guaranteed hours, family leave, and new reporting duties.
- Seek legal and professional advice – Consult experts to interpret final legislation and adjust documentation accordingly.
Early preparation will help organisations remain compliant, minimise disruption, and foster a positive working environment as the new employment landscape takes effect.