We touched on the development with the Employment Rights Bill back in our July newsletter, but it’s important to keep updated regularly with progress on the proposed reforms.
Status update: Where the bill stands now
With Parliament resuming after summer recess, we are expecting the Bill to return to the Commons in September and ultimately receive Royal Assent in the autumn.
An implementation roadmap has been published, outlining “phased implementation” of the proposed key measures—some as early as late 2025, but mostly from 2026 through to 2027.
Meanwhile, critics warn the employment tribunal system already faces a record backlog (nearly 50,000 cases by the end of 2024) and claims reportedly rising by 32% in early 2025.
The proposed introduction of day-one rights, and extended claim timelines (from 3 to 6 months) could overwhelm the tribunal system unless capacity is significantly increased.
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As a reminder, here’s a summary of the Bill’s key reforms that may soon become law:
- “Day-one” rights - unfair dismissal protection, parental leave, paternity leave, bereavement leave, statutory sick pay, and flexible working, all from the first day of employment.
- Statutory “probationary periods” - potentially up to nine months - offering employers a lighter-touch dismissal process during that phase.
- Guaranteed hours for zero-hours workers - including calculation methods for annualised-hours contracts, shifts in obligation mechanisms to avoid loopholes, and potential worker-driven requests.
- Enforced protection against sexual harassment including by third parties, and nullifying NDAs related to harassment or discrimination.
- “Fire-and-rehire/re-place” reforms - specifying automatic unfair dismissal when employees are dismissed and replaced with non-employees.
- Role of the Fair Work Agency (FWA) a new single enforcement body to oversee labour law enforcement, collaborating with EHRC on equality-related matters.
- Extended tribunal claim periods - from 3 to 6 months for unfair dismissal, discrimination, redundancy, etc.
- Enhanced rights and union powers, including in maternity return, sick pay, trade union access, fair pay agreements, and more.
Expect increased tribunal claims and longer timelines - plan for higher legal and operational demand. Review internal HR audit processes and consider proactive investment in mediation or alternative resolution.
Although the final shape of the legislation is not yet confirmed, we understand that the upcoming changes may create uncertainty for employers.
Please be reassured that HR Solutions are here to guide you through each stage. Our team are closely monitoring developments and will provide clear, practical advice to help you prepare and adapt as the Bill moves towards implementation.
To support you, we will be launching our Employment Rights Bill Hub, where you will find regular updates, insights, and resources designed to keep you fully informed.
We encourage you to keep an eye out for the Hub and reach out to us directly with any questions or concerns in the meantime.
