A New Era for Working Britain | The Employment Rights Bill Passes!

The long-debated Employment Rights Bill has finally cleared Parliament and is set to become the Employment Rights Act 2025 before Christmas. After months of political ping-pong, late-night negotiations and several dramatic U-turns, the future of work in the UK is officially changing. 

The much-anticipated new legislation will see the introduction of a new qualifying period of employment for employees to claim unfair dismissal (six months) with a newly announced unlimited compensation removing the current arrangement of being awarded up to 52 weeks’ salary or £118,000. The new legislation will also see day one sick pay and paternity leave combined with greater provisions and protections for pregnant employees and new parents.

Employees on zero‑hours or variable‑hours contracts are set to gain rights to guaranteed hours that reflect their normal working patterns, where employers must also provide proper notice of shifts and pay for last‑minute cancellations. Additionally, we will see a crackdown on fire-and-rehire principles.

The passing of the Employment Rights Bill marks a real change in how workplaces will operate, some would say, something that has been a long time coming given employment laws have not been changed on such a fundamental scale for over a decade.  

So, what is next?

Although Royal Assent will formally transform the Employment Rights Bill into an Act of Parliament, most of its provisions will not take effect immediately. The Government has made clear the new changes will be implemented in phases, with different elements coming into force across 2026 and 2027 through a combination of primary provisions and secondary legislation. Currently, it is suggested that day one rights to statutory sick pay, paternity leave and unpaid parental leave are expected from April 2026, with the reduction to the qualified period of employment for claiming unfair dismissal, set to be introduced in 2027. 

For employers, the challenge is no longer uncertainty about legislative intent, but readiness for implementation. The phased introduction provides an opportunity to review and rewrite HR policies, consider their onboarding and use of probation, adapt workforce strategies and manage legal risk. Employers that engage early with the implications of the Employment Rights Bill will be best placed to navigate the transition once the legislation formally comes into force.

If you have any queries about the first wave of changes expected from April 2026, please don't hesitate to contact our Employment Team.