Insights

Employment Rights Bill: Latest developments​

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

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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.

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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.

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Creation of the Fair Work Agency

A new enforcement body, the Fair Work Agency​.

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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.​

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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.

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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.​

What's happening next?

End of 2025

Trade union reform including enhancing rights and protections (political funds, balloting, industrial action, recognition, and access to workplaces).​

April 2026​

Statutory sick pay (SSP) to be paid from day one at 80% of weekly earnings or flat rate, whichever is lower.​

April 2026

Parental and paternity leave to become a day one right.​

April 2026

Establishment of a new Fair Work Agency.​

April 2026

Increase maximum protective award in tribunal cases for failing collective consultation.​

October 2026

Ban on “bullying” fire and rehire practices.​

October 2026

Extended time limit for tribunal claims.​

October 2026

Employers required to take all reasonable steps to prevent sexual harassment.​

October 2026

Employers liable for third-party harassment.​

October 2026

Trade union statement requirement.​

2027

Unfair dismissal protection from day one (with statutory probation period).​

2027

New right to bereavement leave (min. 1 week from day one).​

2027

Flexible working made default (unless employer proves unreasonableness).​

2027

Collective redundancy procedures extended.​

2027

More protection from dismissal for pregnant employees, on maternity leave, or within 6 months of returning.​

2027

Zero hours workers (including agency workers) entitled to reasonable notice of shifts/changes, and compensation for cancelled/shortened shifts.​

2027

Zero hours / low hours workers entitled to offer of guaranteed hours contract reflecting actual hours worked.​

2027

Large employers required to create menopause support and gender pay gap action plans.​

Our specialists

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.

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