The new Employment Rights Bill is one of the biggest shifts in UK employment law in years. While it’s still working its way through Parliament, Royal Assent is expected by Autumn 2025, and once it’s passed, businesses will need to move quickly to implement the required changes.
At Ignition Law, we’ve been following the legislation closely. In our February webinar, we outlined the Bill’s key proposals and the changes we expect to have the biggest impact on growing businesses. In this blog, we revisit those areas, predict likely implementation dates, and share some practical steps you can take now to stay ahead.
Whether you’re an employer scaling your team, hiring flexibly, or reviewing contracts, our team of employment law solicitors is here to support you. Explore our employment law services for more information.
Employment Rights Bill summary
The Employment Rights Bill 2024 introduces a wide range of measures designed to update and modernise UK employment law. It spans everything from fire-and-rehire restrictions and sick pay reforms to paternity leave, harassment protections, and a ban on zero-hours contracts.
Many of the new rights will be phased in gradually, some through automatic commencement, others via detailed secondary legislation. Here’s an overview of the most relevant elements for business owners and people teams:
- Statutory Sick Pay from day one
- Day-one rights for unfair dismissal
- Stronger protection from harassment (Clause 18)
- Extended time limits for Tribunal claims
- Wider flexible working protections
- Reforms to paternity, parental and bereavement leave
- New whistleblowing categories
- A ban on zero-hours contracts
You can read the full factsheets and updates from the UK Parliament Bill page or the official gov.uk legislation factsheets.
When will the Employment Rights Bill become law?
The Bill is currently progressing through Parliament and is expected to receive Royal Assent by Autumn 2025. Once passed, only a few provisions will take effect immediately; most changes will require formal commencement orders and additional regulation before coming into force.
While the rollout will happen in stages, the direction of travel is clear. Now’s the time for forward-thinking employers to prepare.
How will the Employment Bill change the existing laws and what is the timeline?
Fire and Rehire – Likely Implementation: Autumn 2025
The Employment Rights Bill fire and rehire reforms mean that dismissal will be automatically unfair where an employer tries to force new contract terms on an employee, then re-engages them (or someone else) under different conditions for the same job.
Suggested action points:
- Audit and update employment contracts.
- Ensure variation clauses are clear and enforceable.
- Build flexibility into contracts now to avoid disputes later.
Statutory Sick Pay (SSP) Reform – Likely Implementation: Autumn 2025
Under the Employment Rights Bill 2024 sick pay proposals, SSP will be payable from day one of absence, with the three unpaid waiting days scrapped. The lower earnings limit will also be removed.
Suggested action points:
- Update sickness policies and payroll systems.
- Ensure employment contracts reflect the changes.
Paternity, Parental and Bereavement Leave – Likely Implementation: Autumn 2025
These reforms include:
- Day-one rights for paternity and parental leave.
- Bereavement leave Employment Bill updates introducing one week’s paid leave for close bereavements and maintaining two weeks for child loss.
Suggested action points:
- Review and refresh family leave policies.
- Train line managers on the upcoming entitlements.
Third-Party Harassment Protections – Likely Implementation: During 2026
Clause 18 of the Employment Rights Bill legislation introduces employer liability for harassment by third parties unless the employer can show it took all reasonable steps to prevent it.
Suggested action points:
- Update anti-harassment policies to include third-party incidents.
- Complete risk assessments and implement prevention strategies.
- Link these updates to the positive duty to prevent sexual harassment, which came into effect in October 2024.
Day-One Unfair Dismissal Rights & Tribunal Extension – Likely Implementation: Autumn 2026
The Bill removes the two-year qualifying period for unfair dismissal. During a new “initial period” (likely to be nine months), a lighter-touch test will apply, and compensation may be reduced.
Tribunal claim time limits will also be extended to six months for most claims.
Suggested action points:
- Align probation periods with the proposed 9-month window.
- Review internal dismissal processes and documentation.
- Make sure managers are aware of the increased risk of Tribunal exposure.
Flexible Working – Likely Implementation: Autumn 2026
The Employment Rights Bill flexible working proposals will still allow refusals on one of the eight statutory grounds, but now require employers to give a reasonable explanation. Compensation for non-compliance may rise.
Suggested action points:
- Train managers on how to assess and justify refusals fairly.
- Update flexible working policies to reflect the new duty.
Expanded Whistleblowing Protection – Likely Implementation: Autumn 2026
Sexual harassment will be added as a protected disclosure category under whistleblowing law.
Suggested action points:
- Amend whistleblowing policies to include harassment.
- Cross-reference policies between grievance, harassment, and whistleblowing procedures.
Ban on Zero-Hours Contracts – Likely Implementation: 2026–2028
The Employment Bill proposes that workers who consistently exceed contracted hours must be offered guaranteed contracts. It also mandates at least seven days’ notice for shifts and introduces compensation for cancellations.
This is one of the most complex areas of the legislation and will likely face delays or refinements.
Suggested action points:
- Start reviewing use of zero or low-hours contracts now.
- Monitor future regulations closely.
Final thoughts
The UK Employment Rights Bill marks a significant shift in employee protections, and planning ahead now gives employers the chance to stay in control. We suggest using this time to fine-tune your processes, refresh your documentation, and equip your managers with the tools they’ll need.
Need a sounding board? We’re here to help.
Contact our employment law solicitors today
We’re fast, commercially focused, and already working with businesses preparing for the changes in the Employment Bill.
If you have questions or want support, please contact Nicky Cranfield, Head of Employment at Ignition Law.
