Employment Rights Bill: Latest developments as of June 2025 (UK)
Joanna Rose · Posted on: June 30th 2025 · read
The UK Employment Rights Bill is currently making its way through Parliament and is expected to receive Royal Assent by mid-2025, with implementation projected for 2026.
This legislation represents one of the most comprehensive reforms to employment law in decades, encompassing 28 major changes designed to modernise the workplace and strengthen protections for workers.
Key measures within the bill
More detailed information on the below is available in our March 2025 Newsletter.
- Day-One Rights
- Employees will gain immediate protection from unfair dismissal and be entitled to statutory sick pay and parental leave from day one of employment.
- Zero-Hours Contracts
The Bill proposes a ban on exploitative zero-hours contracts. Employers will be required to offer contracts with guaranteed minimum weekly hours and provide compensation for cancelled shifts at short notice. These provisions are also extended to agency workers.
Fire and Rehire Practices
The Bill introduces a new category of automatically unfair dismissal for employees who refuse to accept contract changes imposed under fire-and-rehire tactics.
- Collective Redundancy Obligations
The penalty for failing to consult during collective redundancies is set to increase from 90 days to 180 days’ gross pay per affected employee.
- Strengthening Trade Union Rights
Provisions include the simplification of processes for union recognition, enhanced rights for collective bargaining, and the formal recognition of digital ballots and communications.
- Creation of the Fair Work Agency
A new enforcement body, the Fair Work Agency
Recent updates and amendments
The Bill passed its Third Reading in the House of Commons on 12 March 2025, and is now under review in the House of Lords.
Recent amendments include:
- Extension of minimum wage protections to unpaid work experience placements.
- Posthumous protections for workers on zero-hours contracts, ensuring unpaid wages and rights transfer to their estate.
Industry reaction
A coalition of over 120 facilities management businesses has expressed serious concern over the potential cost implications of the Bill, warning it may result in job losses and reduced flexibility.
Additionally, a survey by the Institute of Directors found that:
- Nearly half of business leaders believe the Bill could make them less likely to hire.
- Over a third are considering outsourcing roles abroad to manage new compliance burdens.
Trade unions and employee rights organisations have welcomed the reforms, hailing them as a much-needed shift towards fairer working conditions, better job security, and increased accountability.
How MHA HR Solutions can support employers
Navigating such wide-ranging legislative reforms can be complex, particularly for organisations seeking to ensure both compliance and operational continuity. MHA HR Solutions is well-positioned to support employers through this transition in several key ways:
- Policy Review and Development
- We can review your current employment policies and procedures to ensure they reflect the forthcoming legal changes, and assist in drafting new documentation to align with best practice and the updated legislative framework.
- Workforce Planning and Restructuring Advice
Our consultants can provide strategic guidance on managing changes to contracts, working arrangements, and redundancy processes in line with new legal obligations now and when they come in to force.
To discuss how the Employment Rights Bill may affect your organisation — and the tailored support available — please get in touch with our HR Solutions team.
