A paradigm shift in workplace protections

The Employment Rights Bill is nearing its final stages in Parliament and is on track to become law by the end of the year. Arguably the most significant upgrade to workers’ rights in a generation, the bill introduces sweeping reforms aimed at improving job security, fairness, and working conditions that will affect millions across the country.

Key Legislation

Day-One Rights for Employees

One of the most significant changes being proposed is the introduction of day-one protection against unfair dismissal, reversing the Lords' proposal for a six-month qualifying period. Previously, employees needed two years of continuous service to claim unfair dismissal.

However, dismissals may still be permitted under certain conditions. Thespecific framework for early dismissals has yet to be defined.

Reform of Zero-Hours Contracts

The bill requires employers to offer contracted hours to workers who consistently work regular hours. This provision is designed to give more stability to those in precarious employment under zero-hours contracts. Employers will be required to proactively offer guaranteed hours contracts to zero-hours staff based on actual hours worked, rather than just allowing a 'right to request'.

Fire-and-Rehire

The controversial practice of “fire and rehire,” where employees are dismissed and rehired on less favorable terms, will face stricter consultation requirements. The Bill will ban dismissals used to force contractual changes across a broad range of terms.

Expanded Trade Union Rights

Trade union officials will gain greater access to workplaces. Employers will also be required to inform new hires of their right to join a union in their day-one employment particulars. The 50% turnout requirement for industrial action ballots will go, despite the Lords’ attempt to retain it.

Statutory Benefits from Day One

Employees will now be entitled to statutory sick pay, parental leave, and bereavement leave from the start of their employment.

Whistleblowing Protections

Proposed enhancements, including a duty on employers to investigate protected disclosures, will not proceed.

Right to Be Accompanied

Remains limited to trade union representatives or work colleagues; no extension to 'certified professional companions'.

Next Steps

The Bill now returns to the House of Lords for further consideration. Royal Assent is expected by late October 2025, though most reforms (e.g. unfair dismissal, zero-hours contracts) won’t take effect until 2026 or 2027.

What This Means for Employers and Workers

For employers, the bill introduces new compliance obligations and may increase the risk of tribunal claims. For workers, it promises stronger protections and more predictable working conditions. However, the complexity of some provisions—especially around zero-hours contracts and fixed-term arrangements—means that clear guidance and robust enforcement will be essential.

In Summary

The Employment Rights Bill marks a bold step toward modernizing UK employment law. While its full impact will depend on how it’s implemented and enforced, it undeniably shifts the balance toward greater worker protections in an evolving labour market.

References

• The Lawyer

• Morning Star

• The HR Digest

• Browne Jacobson

• CIPD