The UK’s Employment Rights Bill is a landmark piece of legislation aimed at modernising working practices, enhancing worker protections, and supporting the Government’s wider Plan for Change; a mission focused on increasing productivity, raising living standards, and driving inclusive economic growth.
Following extensive consultation with businesses, unions and wider society, the Bill is currently progressing through Parliament and is expected to become law by October 2025.
Travers Smith, a leading UK law firm, provides a comprehensive analysis of the Employment Rights Bill, highlighting its significant implications for employers and the anticipated timeline for implementation.
For an in-depth understanding, you can read their full briefing here: Employment Rights Bill – What does it mean for employers?
Lewis Silkin, a prominent UK law firm renowned for its expertise in employment law, offers a detailed analysis of the Employment Rights Bill, outlining its key provisions and implications for employers.
For a comprehensive understanding, you can read their full briefing here: What's in the Employment Rights Bill?
Here’s a look at what’s coming, and what hiring managers in particular should be considering now.
Day 1 Unfair Dismissal Rights
What’s changing
Employees will gain protection against unfair dismissal from their first day of employment. The existing two-year qualifying period will be removed. Consultations have proposed a statutory probation period (up to nine months) where a lighter-touch dismissal process could apply.
Hiring manager considerations
- Review your probation policies and ensure structured reviews happen early.
- Focus recruitment efforts on quality hires to avoid costly early dismissals.
- Clarify expectations and feedback during probationary periods
Reforming Zero-Hours Contracts with More Security for Workers
What’s changing
Workers on zero-hours contracts will be entitled to a guaranteed hours contract after 12 weeks of regular work. Employers must provide reasonable notice for shift changes and pay compensation for last-minute cancellations.
Hiring manager considerations
- Audit the current use of flexible and casual contracts.
- Ensure shift patterns and notifications are fair and predictable.
- Budget for possible compensation costs if shifts are cancelled at short notice.
Recent development
The Employment Rights Bill now encompasses agency workers in its crackdown on exploitative zero-hours contracts, ensuring that agency work does not become a loophole. (The Guardian, March 2025)
Enhanced Family Leave and Statutory Sick Pay Rights
What’s changing
New employees will have immediate access to parental leave and statutory sick pay from day one, removing previous waiting periods. Statutory sick pay will also become a legal right for low-wage workers, helping up to 1.3 million employees.
Hiring manager considerations
- Update onboarding materials to reflect new family and sick leave rights.
- Plan for potential early-stage absence in workforce management.
- Make sure payroll systems are ready to handle immediate sick pay eligibility.
Recent development
The Bill introduces the right to two weeks' bereavement leave for parents experiencing early miscarriage before 24 weeks of pregnancy. (The Guardian, March 2025)
Ending 'Fire and Rehire' Tactics
What’s changing
Dismissals aimed at forcing employees to accept worse terms will become automatically unfair if the employee refuses the changes.
Hiring manager considerations
- Ensure all contract negotiations are transparent and consensual.
- Work with HR before proposing any changes to employment terms.
- Communicate openly to build trust and avoid disputes.
Strengthening Workplace Harassment Protections
What’s changing
Employers will have a proactive legal duty to take reasonable steps to prevent sexual harassment at work, including from third parties such as customers or clients.
Hiring manager considerations
- Provide anti-harassment training as part of induction.
- Create a visible culture of respect and zero tolerance.
- Establish clear reporting mechanisms for complaints.
Recent development
New obligations include protections from harassment by third parties, reinforcing employer responsibilities. (The Guardian, October 2024)
New Equality Duties and Pay Gap Reporting
What’s changing
Larger employers (over 250 employees) must publish Equality Action Plans, and gender pay gap reporting will extend to include contract workers.
Hiring manager considerations
- Track diversity and inclusion data through your recruitment processes.
- Contribute actively to your organisation’s equality action planning.
- Ensure external contractors and agency staff are included in reporting processes.
The Wider Government Ambition: Boosting the Economy Through Fairer Work
The Employment Rights Bill forms a core part of the Government’s Plan for Change; an economic strategy to Make Work Pay, boost productivity, and create a more stable economy.
The Government highlights that many successful British companies already apply best practices that the Bill will now extend across the economy. According to their impact assessment, the reforms could have a “positive but small direct impact on economic growth” by improving living standards and workforce stability.
Critics, however, have warned about the potential cost burden to businesses, particularly in terms of administrative changes and compliance challenges. (The Independent, March 2025)
The Bill also introduces the creation of a Fair Work Agency to ensure compliance, tackle rogue employers, and support businesses who already invest in fair treatment and strong employee relations.
Early Preparation is Key - Are You Ready for the Employment Rights Bill?
This legislation represents the most significant upgrade to workers’ rights in a generation. While many businesses already operate in line with these standards, the Bill formalises expectations and raises the bar for everyone.
Hiring managers have a crucial role to play
- Reviewing policies now
- Strengthening recruitment and probation processes
- Championing fair, transparent, and compliant hiring practices
October 2025 will arrive faster than you think. The companies already preparing will have a significant competitive advantage.
Ready to future-proof your hiring strategy?
Contact our team today: hello@bigredrecruitment.co.uk
References
Lewis Silkin: What's in the Employment Rights Bill? (April 2025)
Travers Smith: Employment Rights Bill Analysis (April 2025)
GOV.UK News: Employment Rights Bill and Plan for Change (March 2025)
The Guardian: UK Ban on Zero-Hours Contracts for Agency Workers (March 2025)
The Guardian: Bereavement Leave for Early Miscarriage (March 2025)
The Guardian: Employer Duties to Prevent Sexual Harassment (October 2024)
