18.12.2025
The Employment Rights Bill is a landmark reform that will reshape the UK’s workplace culture. While businesses have raised concerns about costs and hiring, for workers it represents greater security, stronger protections, and fairer treatment across industries.
Day-One Rights
- Sick Pay: Employees will now receive statutory sick pay from the first day of illness, removing the previous waiting period.
- Parental Leave: Workers can take unpaid parental leave immediately upon starting a job, instead of waiting 12 months.
Fairer Redundancy and Dismissal Rules
- Unfair Dismissal: The qualifying period for protection against unfair dismissal is being reduced from two years to six months.
- Compensation: The cap on compensation for unfair dismissal claims has been removed, meaning payouts could be significantly higher.
- Collective Redundancy: Stronger consultation requirements will apply when large groups of workers face redundancy.
Family and Equality Protections
- Pregnancy and Maternity: Enhanced protections for pregnant women and new mothers, including safeguards against dismissal.
- Paternity Leave: Improved rights for fathers and partners, with more flexibility in how leave is taken.
- Equality Duties: Employers will be required to implement equality action plans, tackling discrimination and promoting inclusion across workplaces.
Tackling Exploitation
- Zero-Hours Contracts: The Bill curbs exploitative zero-hours arrangements, giving workers more predictable schedules.
- Fire and Rehire: Employers will face restrictions on the controversial practice of dismissing staff and rehiring them on worse terms.
- Employment Agencies: The definition of “employment business” has been updated, tightening regulation of labour supply chains.
Timeline
- The Bill passed the House of Lords on 16 December 2025, after months of debate and amendments.
- Implementation will be phased in across 2026 and 2027, giving employers time to adjust.