Employment Rights Bill approved – key changes ahead for employers

Employment Rights Bill approved – key changes ahead for employers
The Employment Rights Bill has now been approved by the House of Lords and is expected to receive Royal Assent before Christmas, becoming the Employment Rights Act 2025. The new law will apply in England, Scotland and Wales and represents one of the biggest changes to employment law in decades.

While a small number of changes may take effect soon, most reforms will be introduced during 2026 and 2027, giving employers time to prepare.

Key changes to be aware of
The Act introduces stronger protections and more day-one rights for workers, including:

• Fairer contracts for zero-hours and shift workers, with guaranteed hours reflecting actual working patterns, better notice of shifts and compensation for late cancellations
• Tighter restrictions on fire and rehire practices
• A new Fair Work Agency to enforce employment rights
• Unfair dismissal rights extended sooner, with the qualifying period reducing from two years to six months (expected from 2027) and the removal of the compensation cap
• Day-one parental and paternity leave and extended bereavement leave rights
• Statutory Sick Pay payable from day one, with no lower earnings limit (expected April 2026)
• Stronger pregnancy and anti-harassment protections, including third-party harassment
• Simplified trade union access and collective bargaining rules

What employers should do now
Although many changes are still to come, employers should start planning by:

• Reviewing contracts, probation periods and dismissal processes
• Preparing for SSP and family leave changes
• Strengthening anti-harassment policies and training
• Checking HR and payroll systems can handle new requirements

Further details will be confirmed once the Act is published, including start dates and any transitional arrangements. We’ll continue to share updates and practical guidance as the new rules take shape.

Please get in touch if you have any questions regarding the issues discussed in this article. 

E: help@jma-hrlegal.co.uk / T: +44 (0)1252 821792