How is the Employment Rights Bill Progressing?

In October 2024, the introduction of the Employment Rights Bill marked the beginning of a significant shift in UK employment law. The initial provisions represented wide-ranging reforms, with no confirmed timeline for implementation.

Shortly thereafter a "Next Steps to Make Work Pay" document was released, outlining its longer-term vision.

As of June 2025, the Bill has progressed through Parliament, with several amendments added since its introduction in 2024. This update from Alpha HR Legal Lens offers an updated summary of the current status and what employers and employees should anticipate.

 

Current Status of the Employment Rights Bill:

The Bill has passed it's third reading through the House of Commons on March 12th 2025, where it is now under consideration in the House of Lords.

The various provisions are expected to come into force gradually, with most changes likely to be implemented towards the end of 2025 and throughout 2026. During this time, the Alpha HR Legal Lens will provide timely updates accordingly.

 

Key Provisions of the Bill Updates:

Unfair Dismissal as a "Day One" Right

When the Bill was first proposed, the two-year qualifying period for unfair dismissal claims had been removed. In its revised form, an 'initial period of employment', akin to a probationary period, was introduced lasting between 3 and 9 months. The exact duration will be outlined in future regulations.

During this period, employers are expected to be given a greater deal of flexibility to dismiss for potentially fair reasons, such as poor performance or misconduct.

While the provision is not yet in force, employers should take proactive steps now to review their policies in relation to recruitment and probationary periods to ensure compliance ahead of implementation in 2026.

 

Ending Fire and Rehire

The Bill seeks to prevent employers from using "Fire and Rehire" practices, where it will become automatically unfair to dismiss and reengage an employee on new terms. The one exception is where an organisation faces several financial challenges which would result in liquidation.

Additionally, the Code of Practice on Dismissal and Re-engagement ("fire and rehire") will be updated, with employment tribunals empowered to apply and uplift compensation by 25% where breaches occur.

 

Ending Zero Hour Contracts

The government has confirmed a ban on zero-hour contracts, extending protections to agency workers. Under the revised Bill, agency workers will be entitled to:

• Guaranteed hours contracts ensuring it reflects their regular work patterns,
• Reasonable notice on shift changes, and
• Compensation for cancelled or curtailed shifts, with responsibility falling on the employment agency.

These reforms may present operational challenges for employers relying on flexible staffing models, particularly in industries like retail, hospitality, and healthcare.

 

Statutory Sick Pay (SSP)

Currently, employees earning below the Lower Earning Limits (£125 per week) are not entitled to Statutory Sick Pay (SSP). However, the government have published a response to a recent consultation in relation to how the SSP rate can be adjusted for lower earners.

It has been confirmed that the Lower Earnings Limit should be abolished in relation to SSP and replaced with a payment which reflects either 80% of average weekly earnings or the SSP flat rate (£116.76), whichever is lower.

 

Sexual Harassment Prevention

From October 26th 2025, all employers are legally required to take "ALL reasonable steps" to prevent sexual harassment in the workplace, including harassment from third-parties.

To help employers meet this new duty, Alpha HR developed a comprehensive ' Sexual Harassment Training Pack'. This pack includes all essential information on the legislation and guidance to stay compliant in your workplace.

If your business is interested in our 'Sexual Harassment Training Pack' please contact our team on 0845 450 1561 or alpha@martinkaye.co.uk.

 

Redundancy an Collective Consultation

The Bill proposed when determining whether 20 or more redundancies are proposed, the number of redundancies across the business should be totalled, regardless of the various establishments or individual sites.

Following a consultation, the Government published their response, including the remedy for not following procedure correctly. The key amendment is the maximum protective award for failing to consult on redundancies is set to double from 90 to 180 days' pay.

Due to the increase in the penalty for failing to consult in a collective redundancy, it is essential for employers to seek legal advice in early stages where there is a proposal to dismiss 20 or more employees with a 90-day period.