Employment Rights Bill 2025: Key Changes Employers Need to Know

The Employment Rights Bill 2025 is one of the most significant workplace law reforms in recent decades. First introduced to Parliament in October 2024, the Bill is currently progressing through debate and is expected to receive Royal Assent in autumn 2025.

For UK employers, the Bill introduces wide-ranging changes to dismissal rights, trade union rules, zero-hours contracts, family leave and sick pay. These reforms will be introduced gradually, with implementation scheduled across 2025, 2026 and 2027.

Understanding the Bill and preparing ahead of time will be vital for employers who want to remain compliant and avoid disruption.

Employment Rights Bill 2025: Key Dates and Provisions

Autumn 2025 – Initial reforms

Once the Bill receives Royal Assent, a number of measures will take effect immediately, including:

• Repeal of the Strikes (Minimum Service Levels) Act 2023.
• Protection from dismissal for employees participating in industrial action, dismissals will be treated as automatically unfair.
• Simplified rules for trade unions, including electronic voting, reduced notice periods and longer strike mandates.

April 2026 – Day-one rights for parents and sick pay reforms

April 2026 marks a major shift in family leave and sick pay entitlements:

• Day-one rights to paternity and unpaid parental leave: Employees will no longer need a qualifying period of service to access these benefits. Entitlement will begin from the first day of employment.

• Statutory Sick Pay (SSP): SSP will become payable from day one of illness (currently the fourth day) and the lower earnings threshold will be removed. And the lower earnings limit will be removed. Currently, workers must earn a minimum amount to be eligible for statutory sick pay

Additional changes in April 2026 include:

• Stronger whistleblowing protections, recognising sexual harassment as a protected disclosure.
• Mandatory Equality Action Plans, focusing on gender pay gap reporting and menopause support.
• Establishment of the new Fair Work Agency to oversee compliance and enforcement.

October 2026 and beyond – Workplace protections extended

By late 2026, further reforms are scheduled, including:

• “Fire and rehire” practices: These will be deemed automatically unfair dismissal, unless the employer can prove genuine financial hardship.
• Preventing harassment: Employers will be required to take all reasonable steps to protect staff from harassment, including by third parties such as customers.
• Tips and gratuities: Employers must consult staff and review policies regularly.
• Employment tribunal deadlines: Extended from three months to six months for all claims.
• New obligations for public sector outsourcing under a two-tier code, and the creation of a dedicated Adult Social Care Negotiating Body.

2027 – Day-one dismissal rights and zero-hours protections

By 2027, two of the most far-reaching reforms will be introduced:

• Day-one unfair dismissal rights: Removing the current two-year qualifying period. This will fundamentally change how employers manage probationary periods and dismissals.
• Zero-hours and agency worker protections: Workers will gain the right to guaranteed hours after a 12-week reference period.

Why the Employment Rights Bill 2025 Matters for Employers

The phased reforms will require employers to adapt their contracts, HR policies and management practices. Key areas to consider include:

• Probation and dismissal policies – preparation for day-one rights.
• Family leave policies – updating entitlement to paternity and unpaid parental leave.
• Sickness absence procedures – aligning with SSP from day one of illness.
• Equality and harassment policies – ensuring proactive measures are in place.
• Contracts for zero-hours staff – planning for guaranteed hours obligations.

Employers who fail to prepare could face increased risk of employment tribunal claims, reputational damage, and financial penalties.

How BPHR Can Support Your Business

At BPHR, we work closely with employers to ensure they are fully prepared for the Employment Rights Bill and other legislative changes. Our support includes:

• Policy and contract reviews to identify areas requiring updates.
• Compliance roadmaps outlining when reforms will take effect and how to prepare.
• Manager training on handling probation, dismissal, and sickness absence under new rules.
• Practical guidance on implementing Equality Action Plans and preventing workplace harassment.

Preparing for the Employment Rights Bill 2025

The Employment Rights Bill will reshape the UK workplace, introducing stronger employee protections and stricter obligations for employers. With phased changes across 2025, 2026 and 2027, now is the time to start planning.

Contact BPHR today to discuss how these reforms may impact your business and to ensure you are ready for the future of work.