Employment Rights Bill – Background & Current Status
The Employment Rights Bill, first proposed in 2010, is a significant piece of UK legislation designed to create a fairer, more equitable workplace. It seeks to address key issues present within employment laws existing landscape. As part of the government’s broader “Plan to Make Work Pay”, the Bill is designed to enhance worker protections, boost living standards, and support economic growth across the country.
As of 1st July 2025, the Employment Rights Bill has undergone significant revision to strengthen workers’ rights and has very recently completed its Committee Stage in the House of Lords. The Bill is set to enter the Report Stage around mid-July 2025 and will be reviewed further before moving toward Royal Assent.
Some key proposed reforms include:
When Do Employees Gain Protection from Unfair Dismissal Under the New Employment Rights Bill?
From Autumn 2026, employees will be entitled to unfair dismissal protection from the “day 1” of employment, removing the current 2-year qualifying period. Alongside this, statutory probationary periods will be introduced, allowing employers to terminate employment or issue up to three months’ notice during this initial phase. These changes mark a significant shift in employee rights, meaning more workers will likely challenge their dismissal. As a result, it will be essential for employers to include clear probation terms in employment contracts, closely monitor performance, and provide regular feedback from the outset. Employers must also review their existing disciplinary and dismissal procedures, ensuring HR professionals and managers are fully trained to manage performance concerns in line with the new legal framework.
To find out more about unfair dismissal and your rights please visit our Unfair Dismissal web page or contact us to discuss your unique situation with one of our unfair dismissal experts.
What Do the 2026 Fire and Rehire Law Changes Mean for Employers Under the New Employment Rights Bill?
From October 2026, employers will lose the ability to dismiss staff who refuse contractual changes. Any attempt to alter terms and conditions will require clear justification. With fewer options to enforce changes, some employers may turn to redundancies instead. Dismissing an employee to replace them or rehire them on new terms will also be classed as automatically unfair, unless there is a clear justification. To prepare, employers should prioritise drafting employment contracts that offer maximum flexibility from the outset.
What Must Employers Do to Comply with the 2027 Zero-Hour Contract Reforms?
From 2027, workers on zero-hours contracts will be entitled to greater job security. If a casual worker regularly works more hours over a 12-week reference period, they will have the right to request a contract that reflects those established hours. Employers will be required to consider this request reasonably. Although zero-hours contracts will remain legal, these reforms aim to ensure that casual workers with regular patterns are not left in uncertainty.
In addition, workers must be given reasonable notice of their shifts. If a shift is cancelled or changed at short notice, the worker will be entitled to compensation. What counts as “reasonable notice” is still under discussion, but this requirement is intended to discourage last-minute changes that disadvantage workers.
These changes will require employers to monitor casual work arrangements closely and identify when a worker becomes eligible for a regular-hours contract to avoid frequent compensation costs.
These changes are a small part of a much wider update to UK employment law. Employers should begin reviewing their practices to prepare for upcoming changes.
Redundancy Rights UK: What are my rights in a redundancy situation?
If you are an employee about to be consulted, or you are in the process of being consulted about a potential redundancy, it is important you know your rights.
To find out more about your redundancy rights, read our article “Redundancy Rights UK. Read more…
Speak to Our Employment Law Specialists Today
If you have concerns about unfair dismissal, contract changes, zero-hour arrangements, or any of the upcoming reforms to employment law, the employment law experts at Edwards Duthie Shamash can help.
Contact us today for clear, practical advice tailored to your workplace needs.
New Employment Rights Bill Frequently Asked Questions
The Bill is currently progressing through Parliament and is expected to receive Royal Assent after completing its remaining stages in 2025. Key reforms will be phased in from 2026 and 2027.
From Autumn 2026, employees will gain protection against unfair dismissal from the first day of employment, removing the current two-year qualifying period. Statutory probationary periods will also be introduced.
From October 2026, dismissing staff to rehire them on new contractual terms will be automatically unfair unless there is clear justification. Employers will need to ensure contracts are flexible from the outset.
Yes, zero-hour contracts remain legal. However, from 2027, workers will have the right to request a contract reflecting their regular working hours, and employers must provide reasonable notice of shifts or pay compensation for last-minute cancellations.
Employers should begin reviewing contracts, policies, and HR practices to ensure compliance with the upcoming reforms. Training managers, updating dismissal and redundancy procedures, and monitoring casual work arrangements will be essential.