In October 2024, the UK government unveiled the Employment Rights Bill, fulfilling its promise to act within its first 100 days. Branded as the most significant shake-up of workers’ rights in a generation, the bill-backed by the Next Steps to Make Work Pay plan, sets out a bold agenda to modernise UK employment law.
With over 30 reforms packed into nearly 300 pages, the bill signals a clear shift toward stronger protections fairer workplaces, and greater job security. While many details are still to be finalised through consultation, most changes are expected to roll out from 2026 – giving employers time to prepare.
These reforms, alongside rising wage and tax costs will reshape how businesses operate. In this article, we break down the most important elements of the Employment Rights Bill, comparing the current legal framework with the proposed changes—and outlining what employers need to do now to prepare.
1. Unfair dismissal: Day-one rights
Current situation: Employees must complete two years of continuous service before gaining protection from unfair dismissal
What’s changing: The bill proposes to grant unfair dismissal protection from day one, with a nine-month probationary period allowing for a simplified dismissal process
Implications for employers:
Update employment contracts and probation policies
Train managers on fair dismissal practices from the outset
Keep detailed records of performance and conduct during probation
2. Collective redundancy: New thresholds for multi-site employers
Current situation: Employers must consult collectively if 20 or more redundancies are proposed at one establishment with in a 90-day period
What’s changing: The bill introduces site-specific thresholds and proposed new rules for multi-site redundancies, though exact thresholds are still pending
Implications for employers:
Monitor redundancy numbers across all locations
Prepare for more complex consultation requirements
Engage legal support early in restructuring plans
3. Fire and rehire: Stricter rules and tribunal penalties
Current situation: Employers can dismiss and rehire staff on new terms with limited regulation
What’s changing: Employers will be required to explore all alternatives before using fire and re-hire tactics. Employment tribunals may apply a 25% compensation uplift for non-compliance
Implications for employers:
Review change management and contract variation procedures
Document all efforts to avoid dismissal
Ensure transparent and meaningful consultation with staff
4. Flexible working: A day one right
Current situation: Employees must wait 26 weeks before requesting flexible working, and employers have three months to respond
What’s changing: Employees will be able to request flexible working from day one, and employers must respond within two months
Implications for employers:
Update flexible working policies and request forms
Train HR teams to handle requests fairly and efficiently
Assess operational capacity for increased flexibility
5. Zero-hours and low-hours contracts
Current situation: Not guaranteed hours; shifts can be cancelled without notice or pay
What’s changing: Workers will gain the right to request a contract with guaranteed hours if they work regular patterns. Employers must give reasonable notice and compensate for cancellations
Implications for employers:
Review use of zero-hours contracts
Offer stable contracts where patterns exist
Implement fair scheduling practices
6. Statutory sick pay: Expanded access
Current situation: Employees must earn above the lower earnings limit to qualify for statutory sick pay (SSP)
What’s changing: The lower earnings limit will be removed, making statutory sick pay available to more low-paid workers
Implications for employers:
Adjust payroll systems
Budget for increased sick pay costs
Communicate changes to affected staff
7. Family rights: Day-one leave and broader access
Current situation: Paternal, paternity and bereavement leave often requires a qualifying period
What’s changing: These rights will become available from day one, with expanded eligibility for bereavement leave
Implications for employers:
Update leave policies and systems
Prepare for more frequent and varied leave requests
Ensure compliance with new eligibility rules
Strategic takeaways for employers
To stay ahead of the curve and mitigate risk, employers should begin preparing now. Here are five strategic actions to consider:
1. Audit and update polices
Review employment contracts, handbooks and HR policies to ensure they align with the proposed changes – especially around dismissal, redundancy and flexible working
2. Train managers and HR teams
Equip line managers and HR teams with training on the new legal standards, particularly around fair dismissal, consultation processes and handing flexible work requests
3. Strengthen documentation practices
With increased scrutiny on dismissals and contract changes, maintaining clear, consistent documentation will be essential for legal compliance and tribunal defence
4. Engage legal and HR advisors early
Seek expert guidance to interpret the evolving legislation and implement compliant practices. Early engagement can help avoid costly missteps and ensure smooth transitions.
5. Foster a culture of fairness and transparency
These reforms reflect a broader societal shift toward fairer, more secure work. Embracing this ethos can enhance employee trust, reduce turnover and strengthen your employer brand.
The employment rights bill is set to transform the hiring landscape. With new legal obligations around dismissal, flexible working and contract fairness, your pre-employment screening processes need to be more robust, transparent and compliant than ever.
Our experts can help you align your pre-employment checks with the new legal framework – browse our product directory or get in touch today to learn more.