The UK’s employment law landscape is undergoing one of its biggest shake-ups in decades. The Employment Rights Bill, part of the government’s “Make Work Pay” agenda, is moving through Parliament and is expected to receive Royal Assent in autumn 2025, later than originally planned. While some details are still being finalised, the direction of travel is clear: more rights for workers, more responsibilities for employers, and a fundamental shift in how we manage people at work.
At Redway HR, we’ve been tracking these developments closely. Here’s what you need to know.
What’s in the Employment Rights Bill?
– Day One Rights: Employees will no longer need to wait two years to claim unfair dismissal. Protection will start from their first day unless the Lords have their way and a wait of 6 months is agreed.
– Statutory Probation Periods: A new legal framework will define how probation periods work, including notice rights and review processes.
– Fire and Rehire Ban: It will become automatically unfair to dismiss someone for refusing a contractual change. This effectively ends the practice of “fire and rehire” except in extreme financial distress.
– Sick Pay Reform: Statutory Sick Pay will be payable from day one, with the lower earnings limit removed.
– Zero-Hour Contracts: These will be restricted. Anyone working regular hours over a set period will have the right to a contract that reflects those hours.
– Right to Disconnect: Employees will gain the right to switch off outside working hours, with employers required to respect boundaries.
– Flexible Working as Default: Employers must offer flexible working unless they can justify why it’s not practical.
– New Enforcement Body: A Fair Work Agency will be created to enforce rights like holiday pay and sick pay. It will even be able to bring tribunal claims on behalf of workers.
What’s the Timeline on the Employment Rights Bill?
The government has committed to a phased rollout. Some reforms—like day one rights and the fire and rehire ban—could come into force as early as October 2025. Others will follow in 2026 and beyond, with consultations already underway on trade union rights, fair pay in social care, and more. You can download our roadmap which sets out key dates for planning purposes.
What Should Employers Do Now?
Even though not all changes are law yet, the direction is clear. Here’s how to get ahead:
- Review Contracts: Especially if you use zero-hour or casual arrangements. You may need to offer more predictable hours or shift to fixed-term models.
- Plan for Costs: Higher minimum wages, extended sick pay and new leave entitlements could increase your labour costs. Run the numbers now.
- Plan for Increased Admin: the new requirements will certainly generate the need for more paperwork. Check you are adequately resourced.
- Update Policies: From flexible working to the right to disconnect, your employee handbook will need a refresh.
- Engage with Unions: If your workforce is unionised—or might become so—start building constructive relationships now.
- Tighten recruitment and processes to be sure you are making ‘right first time’ hires – reducing risks associated with early dismissals
- Train Your Managers: Many of these changes will require a shift in mindset. Line managers need to understand the new rules and how to apply them fairly and consistently.
- Plan ahead as the changes are implemented over the course of the next few years.
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Final Thoughts
There’s a lot of change coming, and not all of it will feel useful at first glance. But the goal is fairness—and that’s something we can all get behind.
At Redway HR, we’re here to help you navigate this transition. Whether it’s reviewing contracts, updating policies, or training your team, we’ll make sure you’re ready—not just compliant.
If you’d like tailored support or a briefing session for your leadership team, get in touch.