Employment Rights Bill: Countdown To launch

The UK’s Employment Rights Bill roadmap has been announced, ushering in major employment reforms that could herald the most significant uplift in workers’ protections in a generation.

Part of the ‘Make Work Pay’ plan, it aims to modernise employment law, improve job security, and raise working standards.

As the Government moves through the final legislative stages, now is the time for businesses and employees to get informed and be prepared.

WHAT’S CHANGING?

The Employment Rights Bill includes:

Day‑one employment rights: Employees gain immediate protections like unfair dismissal claims, parental leave, sick pay, bereavement leave, and the right to request flexible working
Zero‑hours contract overhaul: Workers on gig-style contracts must now be offered guaranteed hours and fair shift-notice rights – including agency staff – to curb exploitative practices
Ban on “fire and rehire”: Employers may no longer unilaterally terminate and rehire staff on inferior terms, except in truly exceptional circumstances

WHEN DOES IT START?

Late 2025

Royal Assent (expected post summer recess 2025) – Immediate or near-immediate effect:

Repeal of Strikes (Minimum Service Levels) Act 2023.
Repeal of most of the Trade Union Act 2016.
Removal of 10-year ballot renewal requirement for political funds.
Simplified industrial action ballot notice requirements.
Protection from dismissal for participating in industrial action.

Measures that will take effect in April 2026 include:

Maximum collective redundancy protective award doubled (90 → 180 days’ pay).
Service requirement removed for paternity leave and unpaid parental leave – making them a day one right for employees.
New whistleblowing protection for sexual harassment disclosures.
Fair Work Agency
SSP: Removal of lower earnings limit and waiting period – employees will be entitled to sick pay from day one rather than day four.
Trade union recognition and balloting reforms.

Measures that will take effect in October 2026 include:

Fire-and-rehire restrictions (permitted only in limited circumstances).
Establishment of Fair Pay Agreement body for adult social care.
Mandatory notice to employees of their right to join a union.
Employer obligation to prevent third-party harassment and sexual harassment.
New protections for union reps and expanded access rights.
Employment tribunal time limit extended (3 → 6 months).
Extended detriment protections for industrial action.

Measures that will take effect in 2027 include:

Mandatory gender pay gap and menopause action plans.
Stronger pregnancy and maternity protections.
Statutory probation period of what we believe will be 9 months and removal of 2-year qualifying period for unfair dismissal.
Regulation of umbrella companies tightened.
Stricter collective redundancy thresholds and new consultation rules.
Requirement to explain rejections of flexible working requests.
Introduction of unpaid bereavement leave (including miscarriage before 24 weeks).
Right for zero-hours/agency workers to request a guaranteed-hours contract.

FACTORS THAT COULD DELAY IMPLEMENTATION

Parliamentary congestion or delays in secondary legislation.
Complex consultation outcomes requiring extended drafting or revision.
Stakeholder resistance, particularly from employer groups or opposition benches.
Economic changes potentially prompting government reprioritisation.

HOW WILL THIS IMPACT EMPLOYERS?

➡️ Increased costs
Projections suggest up to £5 billion annually in employer expenses driven by upfront sick pay, expanded rights, parental or bereavement leave, and tribunal risk.

➡️ Increased administration
Businesses must upgrade their HR policies and workplace processes, from the recording of leave and sick days to menopause and harassment action plans.

➡️ Unfair dismissal claims from Day One
There are concerns that new recruits (especially those under the old two-year qualification) could more easily bring dismissal claims. Businesses should implement effective statutory probation policies to manage these risks.

➡️ Training and management challenges
Managers will need upskilling to deal with the changes, which takes time and resources.
Consistent application of policies across teams will be essential to avoid claims of discrimination or unfairness.

WHAT ARE THE BENEFITS FOR EMPLOYERS?

✅ Improved staff retention
Stronger protections and enhanced rights (like Day One sick pay or parental leave) can boost employee loyalty and reduce staff turnover. Retaining experienced staff means lower recruitment and onboarding costs for businesses.

✅ More engaged and productive workforce
Providing fairer, clearer entitlements including flexible working, can help improve employee wellbeing. Happier staff are typically more motivated and productive.

✅ Stronger employer brand
Adopting these reforms can position an employer as a fair, responsible, modern workplace, which is increasingly valuable in attracting high-quality candidates in a competitive market.

✅ Encouragement of good management practice
Many reforms will push businesses to invest in proper training for managers, improving skills around performance management, fair treatment, and inclusion, which is a benefit for long-term business culture.

WHERE TO START

Watch our webinar on Changes to Employment law for insights into:

The key deadline every employer should know
How the changes will affect existing policies and employee contracts
Practical steps to ensure compliance

WATCH ON-DEMAND

Audit policies and contracts:

Review dismissal, flexible working, family leave, and union access policies.
Begin assessing the use of zero-hours contracts and umbrella company arrangements.

Strengthen HR practices:

Prepare for day-one unfair dismissal protection and enhanced whistleblowing rules.
Ensure grievance, misconduct, and redundancy procedures are robust and adaptable.

Train line managers

Ensure managers understand new statutory entitlements and are aligned on fair dismissal and flexible working protocols.

Track developments

Monitor consultation periods and draft Codes of Practice (esp. from Acas).
Engage with sector bodies or trade associations responding to consultations.

Prepare financial impact

Budget for potential staff absences, tribunal claims, agency costs, and penalties. Factor these into financial planning.

At TC Group, our dedicated HR Advisory team and financial planning specialists are here to guide you through every stage of these employment law changes – helping you stay compliant, protect your business, and support your people.

SUMMARY

The Employment Rights Bill promises a landmark shift in UK labour law, enhancing fairness and protections for workers, but also imposing new duties on employers.

Change is coming fast.

Businesses should act now to align systems, policies, and training, ensuring they’re compliant and ready once reform takes effect.

Our team at TC Group is ready to help you navigate these upcoming reforms, with practical HR advice and financial planning expertise to keep your business prepared and resilient. Contact us for more information or to book a free, no-obligation consultation.