The UK is approaching one of the most significant transformations in employment law in decades. The Employment Rights Bill is in the final stages of its parliamentary journey and is expected to receive Royal Assent very soon. Once this happens, the countdown toward implementation begins, and employers will face a fundamental shift in the legal framework governing workplace rights and employment practices.
Although many of the key measures will roll out gradually over the next two years, the direction is already clear. The new Bill represents a deliberate move toward greater employee protection and increased accountability for employers. Forward-thinking businesses are already reviewing their practices and planning ahead. Those who wait until commencement dates are announced may find themselves struggling to adapt in time.
If you would like to speak to our employment law team about preparing your business, you can visit our contact page for support and guidance.
A New Era of Workplace Rights
This Bill marks more than a procedural update to employment law. It represents a modern rebalancing between flexibility for employers and security for employees. The changes are wide-ranging and will touch every stage of the employment relationship. From the moment an individual starts work to the way their employment ends, almost every aspect of the journey will be affected.
Among the most notable changes are the introduction of day-one unfair dismissal rights, new restrictions on the practice often referred to as fire and rehire, stronger stability and predictability protections for zero-hours workers, and extended time limits for bringing Employment Tribunal claims. The creation of a new public enforcement body, the Fair Work Agency, will also add a layer of regulatory oversight across core workplace rights.
Why Employers Need To Prepare Now
The government has made clear that implementation will begin in phases. Some provisions are expected to take effect from April 2026, including making parental and paternity leave available from day one, removing lower earnings thresholds and waiting periods for statutory sick pay, establishing the Fair Work Agency, and simplifying trade union recognition procedures. By October 2026 further measures, including the prohibition of fire and rehire practices and increased time limits for tribunal claims, are expected to be in place. There will also be reinforced obligations on employers to take proactive steps to protect employees from sexual harassment at work.
In practice, employers have less than a year to begin preparing. While some details are still being finalised and secondary regulations will provide further clarity, the broad legal landscape is already set. Businesses that do not plan early may face operational disruption, legal risk and potential claims.
Day-One Unfair Dismissal Protection
The removal of the current two-year qualifying period for unfair dismissal protection is one of the most impactful changes in the Bill. Employees will be protected from unfair dismissal from the very first day of employment. A statutory probation period is expected to apply, likely around nine months, however employers will be legally required to follow a formal statutory dismissal process even during probation if they wish to end employment lawfully.
This means casual performance assessments or informal notes will no longer be sufficient. Employers will need transparent and structured probation procedures, clear expectations, documented reviews and evidence that employees have been given a fair opportunity to succeed. Businesses should begin reviewing their onboarding and probation frameworks now to ensure compliance.
New Rules On Changing Terms And Conditions
The Bill also seeks to bring an end to the practice commonly labelled fire and rehire. The future standard will be that dismissing employees in order to impose less favourable contractual terms will be considered automatically unfair except in extremely limited circumstances where a business would face collapse without the change.
Consultation, transparency and genuine engagement will be essential. Employers will be expected to communicate openly about business needs, consider employee feedback and document the process thoroughly. Organisations that rely on contractual flexibility clauses or informal change practices will need to reassess their approach.
Greater Predictability For Zero-Hours Staff
Workers on zero-hours or low-hours contracts will be entitled to greater certainty about their working patterns. Employers will be required to offer contracts that reflect average hours worked across a reference period, anticipated to be twelve weeks. There will also be new obligations relating to notice of work schedules and compensation where shifts are cancelled or altered at short notice.
These changes do not remove flexibility entirely, but they do require more structured workforce planning. Employers who rely on ad-hoc scheduling should consider how to align operational needs with upcoming legal duties. Clearer contracts and more consistent communication strategies will be key.
Longer Claim Periods And New Enforcement Powers
The time limit for many Employment Tribunal claims will increase from three months to six months, giving employees more time to obtain advice and consider legal action. Alongside this extended window, the new Fair Work Agency will have powers to enforce key employment rights, including minimum wage and statutory sick pay. This shift signals a more proactive enforcement environment and highlights the importance of thorough record-keeping, compliance and internal audit processes.
How Employers Can Get Ahead
While guidance and formal processes will continue to emerge, employers should not remain passive. This is the ideal time to review recruitment, onboarding, disciplinary and termination processes, as well as employment contracts and workforce policies. It is also sensible to assess areas such as staff scheduling, record-keeping, performance management and employee communication.
Employers who take a proactive approach protect themselves legally and position their business positively in a changing labour market. A transparent and fair workplace culture not only reduces litigation risk but also improves retention, supports recruitment and strengthens brand reputation.
A Strategic Moment For UK Employers
Some may view these changes as additional obligations and administrative burden. Others will recognise that the shift reflects a wider cultural movement toward fairness, stability and good employment practice. Businesses that embrace the transition will be more competitive, attract a stronger talent pool and experience fewer disputes.
Employers who prepare early can make the changes with confidence rather than under pressure. The Employment Rights Bill represents a new landscape for employment law, and success will depend on readiness and adaptability.
To discuss how these reforms affect your business and to receive expert legal support in updating your policies and contracts, visit our services page or contact our employment law team.
