Expected to become law in late 2025, the Employment Rights Bill and its extensive reforms will have a significant impact on employers across the country.
With many changes scheduled to be phased in throughout 2026 and 2027, understanding what’s already in effect, and what’s coming later, can ensure that your business remains fully compliant.
Fortunately, our straight-talking team has cut through the legal jargon to create a clear, practical Employment Rights Bill guide – designed to help businesses plan ahead.
The Employment Rights Bill 2025: what is it and when does it become law?
Introduced on October 10 2024, the Labour government’s Employment Rights Bill aims to overhaul employment law in the UK, focusing on boosting flexibility and getting the economy moving again.
However, the Bill has received some criticism and is still making its way through Parliament, with changes due take effect gradually to allow employers sufficient time to adapt.
Some related reforms have already taken effect through separate pieces of legislation introduced ahead of the Bill’s implementation.
Employment law reforms for 2025
April 2025 changes
Day one flexible working
In line with the government’s aim of making flexible working the default where practical, as of April 2025, employees have the right to request flexible working arrangements from the first day of their job.
What this means for employers: As an employer, you’ll only be able to deny an employee’s request for flexible working arrangements if you can prove that the request is unreasonable.
To ensure employers have fairly considered the request, they will also be required to consult with staff before refusing it.
Neonatal care leave
As of April 6, 2025, parents of babies who are hospitalised for at least seven days within 28 days of birth can take up to 12 weeks of paid leave.
Prior to this, there was no statutory right to neonatal care leave in the UK.
What this means for employers: Employers must allow eligible parents to take this leave, ensuring that they receive pay and benefits in line with statutory requirements. Policies and HR processes may also need updating to accommodate this change.
Increased statutory pay
April 2025 saw increases to the National Minimum Wage and National Living Wage, with the latter now at £12.21 per hour for workers aged 21 and over. Statutory sick pay and statutory family-related pay also increased.
What this means for employers: As an employer, you must update payroll systems to reflect the new rates and ensure compliance with statutory pay obligations.
Higher employer National Insurance
Employers’ National Insurance contributions increased from 13.8% to 15% in April 2025. This rise is partially offset for small businesses by an expanded employment allowance.
What this means for employers: Budgets and payroll calculations will need to be reviewed in light of these higher insurance contributions, while eligible small businesses should also take advantage of the expanded employment allowance to help offset costs.
November/December 2025 changes
Immediate repeal of the Strikes Act 2023
The government plans to repeal the Strikes (minimum service levels) Act 2023 and the majority of the Trade Union Act 2016. This will remove trade union restrictions, allowing unions to take full industrial action without being forced to maintain minimum service coverage.
What this means for employers: Employers currently operating in one of the affected sectors, such as health, transport, or education, can enforce minimum staffing levels during strikes. Upon the passing of this Bill, however, you will no longer be able to issue ‘work notices’ requiring employees to work during a strike.
Protections against industrial action dismissal
This reform affords workers greater protection against dismissal following industrial action, ensuring they can exercise their right to strike or protest without fear of losing their jobs.
What this means for employers: Employers should review their disciplinary and dismissal procedures, ensuring employees cannot be dismissed or penalised solely for participating in lawful industrial action.
Employment law reforms planned for 2026
April 2026 changes
Increased collective redundancy protective award
From April 2026, the maximum penalty an employer must pay for failing to follow the collective redundancy consultation process is doubling to provide stronger financial security for workers.
What this means for employers: As an employer, if you mishandle a mass redundancy process, workers could now receive twice as much compensation as before.
Day one paternity and unpaid parental leave
In contrast to the current 26-week qualifying period, families will now be entitled to take paternity leave and unpaid parental leave from the first day of working for an employer.
What this means for employers: Employers will need to update their family leave policies, provide HR training, and adjust onboarding procedures to ensure employees are aware of these rights and that the organisation is able to accommodate them.
Greater whistleblowing protections
In April 2026, enhanced whistleblowing protections will be introduced to encourage reporting of wrongdoing without fear of retaliation.
What this means for employers: As an employer, you should review and strengthen your internal whistleblowing policies and ensure HR teams are appropriately trained on whistleblowing, helping workers to utilise the relevant reporting channels.
Establishment of Fair Work Agency (FWA)
The FWA will be created to promote fairness in the workplace, enforce labour rights, and investigate and act on a wide range of employment issues, becoming a place where both workers and employers can seek help and guidance.
What this means for employers: Once the FWA is operational, employers can utilise the organisation for guidance and resources on their workplace practices. To avoid potential investigation or enforcement action, employers should also update their employment policies and procedures in line with legislation.
Statutory Sick Pay (SSP) amendments
In April 2026, the lower earnings limit and waiting period for SSP will be removed. This means workers will be entitled to receive SSP from the first day of illness and those who previously didn’t earn enough to qualify for SSP will now be eligible.
What this means for employers: Employers should update both their payroll systems and sickness policies in line with these adjustments to SSP. Currently, SSP is only paid from the fourth working day of the employee’s sickness absence.
October 2026 changes
Enhanced trade union measures
Set to be introduced in both April and October 2025, these measures will include new rights for trade union representatives, a simplified trade union recognition process and making electronic and in-person workplace balloting more accessible.
What this means for employers: As an employer, it’s likely these measures will increase trade union activity and membership, so focusing on strengthening employee relations and learning how to fairly and lawfully recognise and handle union engagement will be essential.
Ban on fire and rehire practices
Expected to become law in October 2026, is the ending of fire and rehire practices, where employees are fired then rehired often on new, less favourable terms.
This reform would allow for the fairer negotiation of contract changes without workers being concerned about the threat of dismissal.
What this means for employers: Employers should ensure that contractual changes are managed through lawful consultation, negotiation, and mutual agreement.
Fair pay agreement for adult social care
As of October 2026, regulations will be introduced to establish the fair pay agreement adult social care negotiating body in England, with a view to improving pay, working hours, and training in this industry.
What this means for employers: Relevant for all employers operating in the adult social care sector, these organisations should be prepared to abide by any potential new pay and employment standards.
Mandatory tipping consultations
Currently, there’s no legal requirement for employers to consult with staff when making decisions about how tips are shared. When this reform is introduced, tipping consultations will be made mandatory.
What this means for employers: If your business operates in the hospitality and service industry, you will be legally required to conduct formal consultations regarding the distribution of tips, gratuities, and service charges moving forward.
Duty to protect against sexual harassment
This reform would involve the introduction of strengthened protections against sexual harassment, including a new duty to prevent harassment by third parties, such as clients.
What this means for employers: Employers will need to take “all reasonable steps” to prevent sexual harassment of their employees and in the event of an incident, should be able to prove that they took these steps and fulfilled their legal duty.
Responsibility for preventing harassment
As of October 2026, there will be an obligation on employers to prevent the harassment of employees by third parties, extending protection to all workplace environments, including public-facing roles.
What this means for employers: Employers should take proactive steps to identify and mitigate risks of harassment from third parties through strengthened anti-harassment policies, staff training, and clear reporting procedures.
Employment law reforms set for 2027
April 2027 changes
Gender pay gap and menopause action plans
Introduced on a voluntary basis in April 2026, these measures aim to promote gender equality and support women’s health in the workplace through the implementation of action plans that address the gender pay gap and offer support for employees experiencing menopause.
What this means for employers: Employers can play a proactive role in addressing gender pay discrepancies and helping those experiencing menopause by introducing policies and initiatives that support affected individuals.
Enhanced protections for pregnant women and new mothers
This reform would ensure new mothers and pregnant women receive stronger legal protection from dismissal, supporting job security during pregnancy, maternity leave, and the return-to-work period.
What this means for employers: To ensure compliance with these enhanced protections, employers should review and update their maternity and redundancy policies, giving pregnant employees or new mothers priority consideration for suitable alternative roles during any redundancy process
Further harassment protections
Building on the October 2026 sexual harassment protection reforms, these regulations will specify the “reasonable steps” that determine whether an employer has taken appropriate action to prevent sexual harassment.
What this means for employers: As an employer, you must check that your policies and procedures clearly outline the proactive measures you’ve implemented to prevent sexual harassment and ensure full legal compliance.
Modern framework for industrial relations
A modern framework for industrial relations aims to create a fairer and more collaborative approach between employers, employees, and trade unions, ensuring more positive workplace relationships.
What this means for employers: Employers will need to review how they engage, consult, and negotiate with employees and trade unions, with the aim of making workplace policies and decision-making a more collaborative and transparent process.
Enhanced bereavement leave
Currently, the only bereavement leave that is mandatory in the UK is two weeks for parents who have lost a child, as per the Parental Bereavement (Leave and Pay) Act 2018.
While some employers may offer paid or unpaid compassionate leave for bereavements, the reform proposes a day one right to unpaid bereavement leave for employees who experience the loss of a loved one.
What this means for employers: With the introduction of this reform, employers would be required to provide unpaid bereavement leave to all employees from their first day of work, regardless of their length of service, without fear of being dismissed.
New regulations for zero hours contracts
Set for introduction in 2027, these new regulations are designed to offer workers more stable hours and predictable income through a series of rights – including the right to guaranteed hours, reasonable notice of shifts, and payment for shifts cancelled, curtailed, or moved at short notice.
What this means for employers: If you currently offer zero hours contracts, you’ll need to update them to include minimum guaranteed hours, formal scheduling processes, and staff compensation for last-minute shift changes.
Day one right to unfair dismissal protection
Currently, there is a two-year qualifying period for unfair dismissal claims in the UK. This reform would ensure all workers are able to make an unfair dismissal claim from the start of employment.
What this means for employers: As an employer, you’ll need to review your dismissal procedures and training, ensuring that all terminations are fair, well-documented, and made for valid reasons.
Need help understanding the Employment Rights Bill 2025?
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With no legal jargon to grapple with, you’ll get quick access to clear advice and support when you need it most.
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