Background

The Employment Rights Bill, first introduced to Parliament in October 2024, is a key part of the Government’s pre-election Plan to Make Work Pay. When it does come into law, it will bring a wide range of changes to employment law that will impact organisations across Great Britain. We had thought it could achieve Royal Assent prior to Parliament’s summer break, between late July and early September. However, there are now reports that this will not happen and we will have to wait until later this year.

Whilst the Bill is not expected for a few months yet, it was promised during the House of Lords debate that an implementation road map will be published imminently, setting out the Government’s planned timetable for future consultations and implementation of the Bill’s reforms. It is hoped that the road map may give some clarity for employers and help to inform their business planning, despite delays in the Bill’s progress through Parliament. Below, we set out what areas of their practice employers can start reviewing ahead of the roadmap being published and the Bill becoming law.

1. Review probation periods

The Bill will bring in the right for employees to claim unfair dismissal from day one of employment, subject to an “initial period of employment”. Based on what we know, this is anticipated to last for nine months and during it employers will be able to take a “lighter touch” approach to fairly dismiss someone. It’s expected this will involve at least one meeting and resemble the probation periods that employers currently use.

Ahead of this, it’s recommended that employers:

• review recruitment processes to ensure they are effective in finding the best candidates, as dismissal processes will be more complex and subject to more restrictions once the Bill comes into force

• review current probation period policies and processes, including contractual length — if the new initial period of employment is nine months, then a six-month probation period will give flexibility to extend. Giving thought to developing these processes now to ensure they are robust as possible will put employers in a better position when the law does change and enable managers involved in putting them into practice are comfortable with the requirements.

2. Assess plans on making changes to terms and conditions

Reforms on “fire and re-hire” will make dismissing an employee for failing to agree to a variation of terms automatically unfair unless limited financial criteria has been met. Businesses that anticipate needing to make any changes to their terms and conditions, for reasons other than maintaining the financial viability of the business, should consider the alternatives to using such methods. Instead, they should focus on consultation and gaining agreement from their workforce to their plans. Fire and re-hire should be a last resort and with the changes coming into force, this will be reinforced.

3. Strengthen absence management

The removal of the three-day waiting period and the requirement to earn at least the lower earnings limit to be eligible for Statutory Sick Pay (SSP) will make sickness absence more costly, as more people will become entitled to it from their employer. Strong absence management processes will be key to mitigating this.

To prepare, employers should:

• review their sickness policy, or create one if they don’t currently have one in place

• ensure absence management processes are robust and followed consistently

• review any company sick pay eligibility — if eligibility says it matches the criteria for SSP, the employee will also become eligible for company sick pay from day one of absence. Should the decision be to change this, consultation will need to take place with affected employees.

4. Review how third-party harassment is managed

Currently, employers are not liable for third-party harassment but the Bill will change that. It will also bring in the requirement for employers to take “all” reasonable steps to prevent it — a step up from the current requirement to take just “reasonable steps”. This will bring the law in this area in line with other forms of harassment, such as race-based harassment. As a result of these changes, employers should consider what they must do to extend their current processes to include this liability.

5. Train managers

The management of people will be key to implementing any changes because of the Bill and to prevent anything going wrong and the organisation being left exposed to the risk of claims. Employers should review the skill level and capabilities of their line managers and ensure they have the ability and knowledge to manage people and processes efficiently and in line with the law. From holding probation review meetings, to managing sickness absence and dealing with harassment issues, line managers will be on the frontline of dealing with the implications of the Bill.

Takeaway

Now is the time to start making plans for what needs to comply with this new law. Remember, the Bill will also extend the time-limit for individuals to make a tribunal claim from three months to six months. This means failing to prepare and understand how the Bill will impact businesses could leave employers open to legal action against them.

 Implementation Map as at 1st July 2025:

At Royal Assent or Shortly Afterwards - Autumn 2025

• Repeal of the Strikes (Minimum Service Levels) Act 2023

• Repeal of the majority of the Trade Union Act 2016

• Removal of the 10-year ballot requirement for trade union political funds

• Simplification of industrial action notices and industrial action ballot notices

• Introduction of dismissal protections for taking industrial action

April 2026

• Doubling the maximum collective redundancy protective award – from maximum 90 days’ pay to maximum 180 days’ pay

• Removal of service requirement for paternity leave and parental leave

• Whistleblowing protections for protected disclosures regarding sexual harassment

• Establishment of Fair Work Agency body

• This new regulatory body has been designed to bring together different government enforcement bodies operating within the Government that deal with various issues, enforce holiday pay for the first time and strengthen SSP.

• The Fair Work Agency will have powers to bring employment tribunals on behalf of individuals, provide legal support and assistance to those who have brought a claim themselves and enforce the payment of statutory payments to employees. If this comes into law, it will be a significant development for individual rights.

•  Removal of Lower Earnings Limit (LEL) and waiting period requirements for Statutory Sick Pay

The Government has confirmed it will take steps to include in the Bill the removal of the LEL and allow low-paid workers, for the first time, to get SSP at 80% of their wage if they earn less than the rate of SSP. Currently, there is no statutory pay for them when they are off sick. Overall, the plans for SSP are estimated to cost employers £1.07 billion altogether.

• Simplification of trade union recognition process

• Electronic and workplace balloting reforms

 October 2026

• Restrictions on the use of fire and rehire unless in limited circumstances

• Requirement to inform workers of their right to join a trade union

• Requirement for employers to take “all reasonable steps” to prevent sexual harassment of their employees

• Obligation for employers to not to permit the harassment of their employees by third parties

• Extension of employment tribunal time limits from three months to six months

• Tightening of tip laws

• Strengthening of trade unions’ right of access

• Introduction of new rights and protections for trade union representatives

• Extension of the protections against detriments for taking industrial action

• Introduction of regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body

 2027

• Removal of the two-year service requirement for ordinary unfair dismissal claims and the introduction of a statutory probation period

• Requirement for employers to explain why it was reasonable to refuse a flexible working request

• Introduction of regulations to specify steps that are to be deemed as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment

• Requirement to offer zero-hour, low hour and agency workers a guaranteed hours contract reflecting their usual working hours and notice or compensation for changes to shifts

The original version of the Bill contained provisions to ban exploitative zero-hours contracts. This will be achieved by giving zero hours and low-hours workers the right to be offered a guaranteed-hours contract if they work regular hours over a defined period. It also set out a requirement for zero hours and low-hours workers to be given reasonable notice of changes in shifts and to be paid an amount where shifts are cancelled or changed. 

In February, an amended version of the Bill provided more information on guaranteed-hours contracts and compensation for cancelled or curtailed shifts.

This included a requirement that where a new employee is likely to be later eligible for a guaranteed-hours contract offer, employers must provide them with information on this right within the first two weeks of employment. The amendments also provide that when any offer is made of a guaranteed-hours contract, relevant information must be provided regarding the employee’s rights and why the offer is being made. It also included employees’ entitlement to reasonable notice and compensation for shifts that have only been “requested” by the employer, as well as those “required”.

In has since been clarified that these protections are to be extended to agency workers too.

• Introduction of unpaid bereavement leave, and the extension of parental bereavement leave criteria to cover miscarriages before the 24th week of pregnancy

Currently, employees may be eligible to take statutory parental bereavement leave and pay if they, or their partner, had a child who died under 18 years old or had a still birth after 24 weeks of pregnancy. If eligible, employees can take two weeks' leave, either together or individually, paid at the statutory rate.

• Introduction of new collective consultation thresholds in collective redundancy situations

• Extension of the rights and protections for pregnant workers

• Introduction of an industrial relations framework and blacklisting provisions

• Tighter regulation of umbrella companies

• Mandatory gender pay gap and menopause action plans