The UK is on the cusp of the most significant upgrade in employment rights in a generation. The Employment Rights Bill, part of the government’s wider Plan to Make Work Pay, promises to raise living standards, strengthen job security, and modernise workplace protections.
With millions of workers trapped in insecure or low-paid roles, the Bill directly addresses issues like zero-hours contracts, poor enforcement of workplace rights, and weak protections against unfair dismissal. The changes are designed not only to support workers but also to boost productivity, reduce workplace conflict, and create a fairer economy.
Key Reforms in the Employment Rights Bill
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Tackling Insecure Work
- Ending exploitative zero-hours contracts by introducing guaranteed hours, reasonable notice of shifts, and compensation for short-notice cancellations.
- Protecting agency workers with the same security measures as permanent employees.
- Banning ‘fire and rehire’ practices, except where there is no genuine alternative.
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Stronger Protections at Work
- Unfair dismissal rights from day one, replacing the two-year qualifying period.
- Statutory probationary periods, ensuring employers can still assess suitability fairly.
- New redundancy consultation rights, closing loopholes around collective redundancies.
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Fair Pay and Sick Pay
- Statutory Sick Pay strengthened, with the lower earnings limit and waiting period removed.
- Fair Pay Agreements for the adult social care sector, raising standards in one of the UK’s lowest-paid sectors.
- Tipping reforms, ensuring workers benefit fully and fairly.
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Family-Friendly and Flexible Work
- Bereavement leave introduced as a statutory right.
- Day-one rights for parental and paternity leave.
- Stronger protections for pregnant women and new mothers, extending six months beyond maternity leave.
- Day-one right to request flexible working, with employers required to give clear, reasonable grounds for refusal.
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Safer, Fairer, More Equal Workplaces
- Stronger protections against harassment, including third-party harassment.
- Employer duty to address the gender pay gap and support employees through menopause.
- Stronger whistleblowing rights, particularly around sexual harassment.
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Trade Unions and Enforcement
- Repeal of restrictive laws (including parts of the Trade Union Act 2016).
- Simplified union recognition and digital access rights.
- Creation of the Fair Work Agency, a new regulator to enforce rights, combat exploitation, and tackle non-compliance.
What This Means for Workers and Employers
For workers, the Bill means greater security, fairer pay, and improved wellbeing. From sick pay reforms worth an estimated £400 million a year to day-one unfair dismissal rights for nine million employees, the changes promise to make jobs safer and more rewarding.
For employees these changes will make a lot of difference
For employers, the reforms do carry costs, estimated at 0.1%–0.4% of the national wage bill. However, these are outweighed by the benefits of reduced turnover, improved wellbeing, and fewer conflicts. The government estimates workplace conflict alone costs businesses £30 billion annually; reforms could significantly reduce that burden.
How Employees Will Benefit from Changes in Employment Laws
Stronger Protection Against Unfair Treatment
- Employees now have greater safeguards against unfair dismissal, discrimination, and workplace harassment.
- This means a safer, more respectful working environment where grievances are taken seriously.
Enhanced Parental and Family Rights
- Improved maternity, paternity, shared parental leave, and flexible working rights allow employees to better balance work and family life.
- Parents can take the time they need without fear of losing their job or income.
Better Pay and Benefits Transparency
- New rules on pay reporting and equality help close wage gaps and ensure fair compensation for all roles.
- Employees can more easily see that their pay is equitable compared to colleagues doing similar work.
Increased Job Security
- Stronger protections around redundancy and contract changes reduce the risk of sudden job loss.
- Employees have clearer rights when facing organisational restructuring or role changes.
Support for Mental Health and Well-being
- Laws are increasingly recognising the importance of mental health in the workplace.
- Employees may benefit from policies around stress management, flexible hours, and well-being initiatives.
Greater Flexibility at Work
- More rights to request flexible working and hybrid arrangements help employees tailor their schedules to personal needs.
- This supports a better work-life balance and reduces commuting stress.
Empowered to Raise Concerns Safely
- Enhanced whistleblower protections and grievance procedures allow employees to speak up without fear of retaliation.
- This creates a more accountable and transparent workplace culture.
When Will the Changes Happen?
When parliamentary business resumes in mid-October, the final stage, the consideration of amendments (which is also called ping-pong) will be resolved. A date has now been set for the Lords to vote on amendments of the bill – the 28 October. The Lords can either accept Commons amendments or reject them. Either way, the bill will then pass through the Lords and proceed to Royal Assent, at which point it becomes law.
Most measures will not come into force until 2026 at the earliest, with detailed regulations and guidance to be consulted on in the meantime. This gives employers time to prepare and adapt, while workers can begin planning for stronger rights in the years ahead.
What these changes will mean in real terms
The Employment Rights Bill isn’t just a set of new regulations, it’s a promise of change that could transform the daily reality of millions of people.
Imagine a care worker who no longer has to accept last-minute shifts without notice, or a parent who can take paternity leave from day one and spend precious time with their newborn. Think of the employee who, for the first time, feels secure knowing they can’t be dismissed unfairly simply because they haven’t yet reached two years of service. These are not abstract legal changes, they are real protections that shape lives, families, and futures.
For businesses, the journey may involve challenges revising policies, allocating resources, and embedding fairer practices. But the rewards are clear: healthier, more motivated teams, lower staff turnover, and a stronger reputation as an employer who does the right thing.
This Bill signals a turning point: fair treatment at work is no longer a privilege, but a standard expectation. The question for leaders and organisations is not whether to adapt, but how quickly they will embrace this shift. Because those who do will not only meet the law, they’ll build workplaces where people thrive, stay, and succeed.
What HR Managers Should Do Now
- Audit Your Policies – Review contracts, handbooks, and internal policies to ensure everything is up-to-date and legally compliant. Tighten up your return to work interviews and ensure you have good process for impact assessments. Further ensure any reasonable adjustments can be implemented quickly and effectively. Don’t wait, spot gaps now before they become issues.
- Stay Ahead of Legal Changes
Sign up for GOV.UK updates, ACAS guidance, and trusted HR newsletters. Being proactive keeps your team safe from costly missteps. - Train Your Managers
Run refresher sessions on employment rights, cover pay, leave, flexible working, and disciplinary processes. Knowledgeable managers reduce risk. Talk to us about our disability impact assessment training to empower and protect your staff. - Identify Risk Areas
Conduct a compliance check and spot where your organisation could face disputes. Focus first on contracts, redundancies, and grievance procedures. Aim to mitigate any potential Employment Tribunal Claims by tightening policies and processes. - Communicate Clearly
Keep employees informed about their rights and any policy updates. Clear communication builds trust and prevents misunderstandings. - Document Everything
Record contracts, communications, training sessions, back-to-work interviews and HR decisions. Good documentation is your best defence in case of disputes. - Get Expert Support
Don’t go it alone on complex issues. Employment lawyers or specialist HR advisors can guide you through tricky situations. - Plan Proactively
Schedule regular compliance audits and policy reviews. Build an HR strategy that keeps your organisation ahead, not just compliant.
Last Thoughts
The Employment Rights Bill represents a turning point in UK employment law. By ending exploitative practices, improving conditions, and modernising protections, the Bill aims to create an employment market that is not only fairer but also more productive and sustainable.
For businesses, the challenge will be to adapt, but the rewards are a healthier, more motivated, and more loyal workforce. For workers, it’s a long-overdue recognition that fair treatment at work is not a privilege but a right.
Stay Ahead of the Change
Employment law in the UK is evolving rapidly. Don’t wait for issues to arise, review your policies, train your managers, and ensure your organisation is fully compliant.
The Dept of Business and Trade have published a series of useful factsheets about many of the changes in the Employment Rights Bill – check out the Factsheet: Employment Rights Bill – Overview
Start today, get informed and protect your team and your business.