Employment Rights Bill | 2025 Update

The Employment Rights Bill is set to bring major changes to UK employment law. It includes 28 proposed reforms designed to enhance workplace rights and improve employer responsibilities.

As of March 2025, the Bill has passed through the House of Commons and is now under detailed review by the House of Lords. Once passed, this legislation will significantly impact how businesses operate across the UK.

What Employers Need to Know

Employers should start preparing now. Understanding these changes early will help ensure legal compliance and smooth internal transitions.

When Will the Employment Rights Bill Become Law?

The Bill is expected to receive Royal Assent—the final step to becoming law—by late 2025. Some provisions, such as the repeal of the Strikes (Minimum Service Levels) Act 2023, will take effect immediately.

However, most changes will roll out gradually through secondary legislation, starting in 2026 and beyond. These statutory instruments will provide the legal detail needed to enforce the Bill’s core measures.

In short: Businesses have time to prepare—but that time should be used wisely.

Key Changes Proposed by the Employment Rights Bill:  

Looking at some of the more significant changes currently proposed by the Employment Rights Bill. It’s important to note that these are not yet in force, but are suggested proposals that are subject to change:

• Universal day-one rights: The qualifying period for unfair dismissal is set to be removed, meaning employees gain protection from the first day of employment.

• Tribunal limitation periods: The standard three-month time limit for employment tribunal claims is set to be extended to six months for all claim types

• Fire and rehire: Where an employee refuses contractual changes, dismissal in this instance is set to become automatically unfair unless the employer can demonstrate that changes were necessary for genuine business reasons – potentially raising the bar for employers by removing the tribunal’s ability to consider the overall reasonableness of the dismissal.

• Sexual harassment: Employers will be required to take “all reasonable steps” to prevent sexual harassment, raising the requirement for the existing “reasonable steps” duty, including third-party harassment (e.g. clients or customers) being reintroduced as a ground for employer liability. Regulations will likely clarify what this involves.

• Zero-hours and low-hours contracts: Workers are set to gain the right to request guaranteed hours based on their working patterns, and compensation would be payable for cancelled or curtailed shifts, as well as reasonable notice of working hours.

• Agency workers: Agency workers are set to benefit from comparable protections to the zero-hours/low-hours contract workers.

• Statutory Sick Pay (SSP): The lower earnings limit and current waiting period for SSP is set to be removed, and to become a day one right for all eligible workers.

• Fair Work Agency: A new statutory enforcement body is set to be implemented with powers to issue underpayment notices, fines and other enforcement tools surrounding minimum wage, agency work, holiday pay etc.

• Family leave: Stronger family leave rights, including more flexible parental leave, bereavement leave is now set to include additional family categories, together with broader access to unpaid parental leave and fewer qualifying restrictions.

This list is not exhaustive but does represent some of the most immediate concerns for employers.

What Employers Should Do Now

Although most reforms won’t take effect until 2026 or later, employers must act now to prepare. Proactive steps can reduce risk and ensure smoother compliance later.

Immediate Action Points:

• Review and Update Documentation: Contracts, handbooks, and policies should be reviewed and revised to reflect new legal obligations.

• Improve Record-Keeping: Accurate records—especially for zero-hours and agency staff—will be essential. Employers must be ready to process guaranteed-hours requests and demonstrate compliance

• Deliver Training: HR teams and managers will need updated training on all relevant changes to avoid legal missteps.

• Plan for Increased Litigation: Longer tribunal claim windows and enhanced rights may lead to more employment disputes. Employers should prepare for potential claims.

How We Can Help: 

At Bright Solicitors, we help employers stay ahead of legal changes. Whether you need support with contracts, policies, HR procedures, or legal advice, our expert team is here to guide you with confidence.

The Employment Rights Bill marks a major shift in employment law. While the changes will roll out over time, employers should prepare now to avoid risk and protect their business.

Need Support?

Contact our team today for tailored advice on preparing for these upcoming reforms.