Employment Rights Bill – What we know now

On 1st July 2025, the Government published its official roadmap for implementing the Employment Rights Bill, a major reform package that will reshape employment rights and responsibilities across the UK.

This article provides a clear overview of the proposed changes, their implementation timeline, and what employers should be aware of as they prepare for the months ahead.

Purpose of the Employment Rights Bill

The Employment Rights Bill is part of the Government’s “Make Work Pay” strategy. It is designed to:

• Address insecure and low-paid work,
• Strengthen individual and collective employment rights,
• Modernise existing protections,
• Improve enforcement of employment law.

The Bill will be introduced in phases between late 2025 and 2027, giving employers time to prepare. The following summary sets out the key changes in each phase.

Phase 1, Upon Royal Assent (Expected Late 2025)

These changes will take effect immediately once the Bill becomes law:

Repeal of Previous Legislation

• The Trade Union Act 2016 and the Strikes (Minimum Service Levels) Act 2023 will be repealed in full.

Protection for Industrial Action

• Employees participating in lawful industrial action will be protected from dismissal.

Phase 2, April 2026

Statutory Sick Pay (SSP)

• The three-day waiting period for SSP will be removed,
• The lower earnings limit will be abolished, allowing low-paid workers to qualify.

Parental Leave Reforms

• Paternity leave and unpaid parental leave will become day-one rights, removing the previous minimum service requirements.

Trade Union Reforms

• A simplified process for union recognition will be introduced,
• Electronic and workplace ballots will be permitted,
• Unions will have the right to access workplaces in specific circumstances.

Collective Redundancy

• The maximum protective award for failing to consult in a collective redundancy situation will be doubled.

Establishment of the Fair Work Agency

• A new enforcement body will be created to promote fair working practices and address underpayment, poor conditions, and non-compliance.

Phase 3, October 2026

Fire and Rehire Restrictions

• Employers will be prohibited from using dismissal and re-engagement to enforce contractual changes unless all reasonable alternatives have been considered.

Sexual Harassment Prevention

• Employers will be under a legal duty to take all reasonable steps to prevent sexual harassment, including harassment by third parties such as clients or customers.

Fair Pay Agreement for Adult Social Care

• A national pay agreement will be introduced for the adult social care sector, setting minimum terms and conditions.

Tipping Practices

• Employers will be required to pass on all tips to workers in full and distribute them fairly, supported by transparent record-keeping.

Additional Trade Union Protections

• Union access rights will be strengthened, and protections around ballots and representation will be expanded.

Phase 4, From 2027 (Expected April)

Reform of Zero-Hours and Insecure Work

• Workers will have the right to request a predictable work pattern where their current hours lack consistency,
• Restrictions will be placed on the future use of zero-hours arrangements to ensure fairness and predictability.

Day-One Protection from Unfair Dismissal

• The qualifying period for protection from unfair dismissal will be removed, making it a day-one right,
• Employers will be able to use a statutory probationary period. Details will be confirmed following consultation.

Flexible Working Requests

• The right to request flexible working will apply from the first day of employment,
• Employers will be expected to follow a strengthened process for handling these requests.

New Leave Entitlements and Workplace Protections

• A statutory right to bereavement leave will be introduced for all workers,
• Enhanced protections for pregnant women and new mothers, particularly during redundancy or dismissal procedures,
• Employers with 250 or more employees will be required to publish a workplace menopause action plan alongside their gender pay gap data.

Consultation and Guidance

The Government has confirmed that formal consultations will take place on many of these changes. These will run throughout 2025 and early 2026. Areas expected to be covered include:

• Day-one unfair dismissal,
• Zero-hours and insecure work,
• Bereavement and pregnancy-related leave,
• Sexual harassment prevention,
• Tipping and flexible working practices.

Following these consultations, official guidance and Codes of Practice will be issued to support employers in understanding and implementing the new requirements.

Summary of Key Measures

Change	Effective From	Applies To
Removal of SSP waiting period	April 2026	All employees
Day-one rights to parental leave	April 2026	All employees
Fire and rehire restrictions	October 2026	All employers
Day-one unfair dismissal protection	2027	All employees
Flexible working from day one	2027	All employees
Statutory bereavement leave	2027	All workers
Menopause action plans	2027	Employers with 250+ staff
Right to request predictable hours	2027	Workers on atypical contracts

The Employment Rights Bill represents the most significant set of changes to UK employment law in decades. While the phased implementation gives employers time to adjust, many of the changes will require careful planning and updates to contracts, policies, and internal procedures.

Redwing Solutions will continue to monitor developments and provide guidance as consultations close and final regulations are confirmed. If you have any questions about these changes, please don’t hesitate to contact us on 01527 909436.

We have an Employment Rights Bill Webinar on 30th July 2025 at 7 p.m. To join register here.