The Employment Rights Bill is progressing towards the end of its passage through Parliament (the Lords Report stage starts on 14th July); and the Government has published its ‘roadmap’ for implementing its provisions. We summarise below some of the key issues on the horizon.
Consultations
The Government are going to consult on the following:
Summer 2025
- Consultation on Regulations for day 1 Unfair dismissal right
- Consultation on Regulations for School Support Staff and Adult Social Care bodies.
Autumn 2025
Consultation on Regulations for:
- Trade Union rights.
- Fire and Rehire.
- Zero hours work.
- Umbrella Companies (payment intermediaries) within the scope of the Employment Agencies Act.
- Pregnant worker rights; and
- Bereavement leave
The Roadmap is as follows:
Into Force April 2026
Collective Redundancy Protective Award
Doubling the maximum period of the protective award from 90 days to 180 days.
Paternity Leave and Unpaid Parental Leave
Entitlement is to become a Day 1 right – by removing the requirement to have 26 weeks service to qualify for Paternity Leave; and by removing the requirement to have 12 months service to qualify for Parental Leave.
Whistleblowing Protections
For a disclosure to qualify for protection, a worker who makes a disclosure must reasonably believe that they are acting in the public interest and that the disclosure tends to show a past, present, or likely future relevant failure falling into one or more of the following categories, listed under section 43B of the ERA:
- Criminal offences.
- Failure to comply with an obligation set out in Law.
- Miscarriages of justice.
- Endangering someone’s health and safety.
- Damage to the environment.
- Covering up wrongdoing in the above categories.
Whilst sexual harassment may be covered by the existing list of relevant failures for a qualifying disclosure, as it could be a criminal offence, failure to comply with a legal obligation, or a health and safety issue, the amendment will make clear that a disclosure of information by a worker about sexual harassment can be a qualifying disclosure under s.43B of the ERA.
Statutory Sick Pay
Removing the requirement to earn at or above the Lower Earnings Limit. This will mean the lowest-paid employees will now be entitled to Statutory Sick Pay. For some lower earners, including those earning below the Lower Earnings Limit, their rate of Statutory Sick Pay will be calculated as a percentage of their earnings instead of the flat weekly rate.
The Government consulted on what this rate should be and, taking into account the responses to the consultation and discussions with stakeholders, this rate will be set by the Bill at 80% of normal weekly earnings, or £118.75, whichever is lower. In addition, removing the waiting period meaning all eligible employees can receive Statutory Sick Pay from the first day of sickness absence.
Fair Work Agency Body Established
Whilst most employment rights are currently enforced by individuals presenting a complaint to an Employment Tribunal, a limited number of employment rights are enforced by the state on workers’ behalf (e.g. national minimum wage or protections for agency workers).
The Fair Work Agency (FWA) will bring together existing state enforcement functions (e.g. the Gang masters and Labour Abuse Authority and the Director of Labour Market Enforcement) and, over time, take on enforcement of a wider range of employment rights. This will be a single place where workers and employers can turn for help.
The aim of the FWA is to resolve issues upstream by supporting employers that want to comply with the law; but it will also have strong powers to investigate and take action against businesses that flout the law, to level the playing field for compliant businesses. The FWA will be an Executive Agency of the Department for Business and Trade (DBT), created administratively. It will not have its own distinct legal identity, so the Bill gives the Secretary of State a series of functions to enforce certain employment legislation. Those functions will in practice be discharged through the FWA, including by enforcement officers appointed by the Secretary of State.
Into Force October 2026
Fire and Rehire
Making it automatically unfair to dismiss an employee for refusing to agree to a contractual variation (or to replace them with another employee on varied terms).
Bringing forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body
Allow the appropriate authority to make regulations that, among other things:
- Establish social care negotiating bodies for England, Scotland and Wales, including provision about the appointment of its members.
- Make provision about the remit of the negotiating body (for example, to specify additional matters relating to employment as a social care worker).
- Specify how matters are to be considered by a negotiating body in its negotiations.
- Set out the process for dispute resolution and reconsideration of matters; and
- Ratify a negotiating body’s agreement so that its provisions relating to workers’ pay and terms and conditions are given legal effect.
Tightening Tipping Law
The Bill will strengthen the law on tipping to make it mandatory for employers, when developing their tipping policies, to consult with workers at the place of business. The clause states that this consultation should take place with recognised trade union representatives or other elected representatives where possible, but, if absent, directly with the workers affected. In addition, the clause will also mandate that employers review their policy on tipping at least once every three years. Employers will be required to make an anonymised summary of the views expressed in the consultation available to all workers of the employer at the place of business where the policy applies.
Harassment
Requiring employers to take “all reasonable steps” to prevent sexual harassment of their employees.
Third Party Harassment
Introducing an obligation on employers not to permit the harassment of their employees by third parties.
Into Force 2027
Gender Pay Gap and Menopause Action Plans
Introduced on a voluntary basis in April 2026.
Rights for Pregnant Workers
An additional layer of protection by making it unlawful to dismiss pregnant women, and mothers on Maternity Leave, or in the six months after they return to work – except in specific circumstances. This change is designed to further tackle maternity and pregnancy discrimination and to avoid women leaving the workforce.
Harassment
Introducing a power to enable regulations to specify steps that are to be regarded as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment.
Collective Redundancy – Collective Consultation Threshold
The changes the Government is putting forward in the Employment Rights Bill will provide that collective redundancy obligations will be triggered where:
- 20 or more redundancies are proposed at one establishment (as is the case under the existing law); or
- A threshold number of employees are proposed to be made redundant across the employer’s organisation.
- This threshold number will be set in regulations following detailed consultation with all those with a stake in good employer-employee relations.
Similarly, amending notification requirements so that employers must also notify the Government when they are proposing to make employees redundant across their business when they meet this new threshold.
Flexible Working
Tweaking the existing Flexible Working legal framework so that:
- Employers can only reject a flexible working request where it is reasonable to do so on the grounds of one (or more) of the eight business reasons already set out in primary legislation.
- If an employer wants to reject a request, they will need to consult with the employee (as they currently do), but in doing so follow a specified process, to be set out via secondary legislation.
- If an employer rejects a request, they must explain to the employee why their decision is reasonable.
Into Force 2027
Bereavement Leave
Introducing a day one right to protected time off for employees to grieve the loss of a loved one. It will provide a clear baseline for employers and protect those employees who might not have otherwise received time off from their employer).
Ending the exploitative use of Zero Hour Contracts (ZHC) and applying ZHC measures to Agency Workers.
Right to Guaranteed Hours
The measures set out in the Bill will require employers to offer eligible workers guaranteed hours reflecting the hours they regularly work over reference period, which will be set in regulations and is expected to be 12 weeks. Individuals will be able to reject an offer of guaranteed hours and remain on a zero hours contract if they wish.
Right to Reasonable Notice of Shifts
The Bill will require employers to provide workers with reasonable notice of shifts. If an employer schedules shifts with unreasonable notice, the worker can bring a tribunal claim. The tribunal will decide whether the worker was given reasonable notice of the shift. The Government will use regulations to state how much notice should be ‘presumed reasonable’. This will be the tribunals’ starting point. The Government will also set out the factors the tribunals should look at when determining whether the notice was reasonable or not. Such issues will be part of the Government’s consultation on implementing regulations.
Right to Payment for Shifts Cancelled, Curtailed, or Moved at Short Notice
The Bill will require employers to make payments to workers if they cancel, move or curtail a shift at short notice.
Agency Workers
The Government recognises that due to the complex relationship between an agency worker, agency and hirer, the zero hours contracts rights may need to apply differently to agency workers.
‘Day 1’ Right – Protection from Unfair Dismissal
The Government is repealing the two-year qualifying period for employee protections against unfair dismissal, ensuring that every employee is protected from day one of starting work. Existing rights that already provide protection without any qualifying period will not be affected. These changes will not prevent employers fairly dismissing employees.
To ensure businesses can operate probationary periods fairly and transparently, they will establish a ‘statutory probation period’ (described as an “initial period of employment”) to ensure that employers retain the ability to ensure that the job is a good fit for both the employee and the employer.
The Government’s preference is that this period lasts for the initial nine months of employment. During this period, a less onerous process with lighter touch standard will allow businesses to fairly dismiss someone who is not right for the job.
The two-year qualifying period for the right to written reasons for dismissal on request will also be repealed, with employees qualifying for this right instead after the initial period of employment has concluded.
If an employee who was dismissed during the initial period of employment because they were not right for the job successfully brings a claim for unfair dismissal, there may be a lower cap on the compensatory award that an employment tribunal can make. As usual, the tribunal will consider what is fair in determining the award, taking into consideration the financial amount lost by the claimant, with a reference to salary and benefits.
TRADE UNION REFORMS
In addition to the above, the following Trade Union reforms are on the horizon:
Coming into Force Upon Royal Assent:
- Repeal of the Strikes (Minimum Service Levels) Act 2023.
- Repeal of the great majority of the Trade Union Act 2016 (some provisions will be repealed via commencement order at a later date).
- Removing the 10-year ballot requirement for trade union political funds.
- Simplifying industrial action notices and industrial action ballot notices.
- Protections against dismissal for taking industrial action.
Into Force April 2026
- Simplifying trade union recognition process.
- Electronic and workplace balloting.
Into Force October 2026
- Duty to inform workers of their right to join a trade union.
- Strengthen trade unions’ right of access.
- New rights and protections for trade union reps.
- Employment tribunal time limits.
- Extending protections against detriments for taking industrial action.
- Procurement – two-tier code.
Into Force 2027
- Blacklisting.
- Industrial relations framework.
- Regulation of umbrella companies.
And finally…..
List of Amendments Published
This week the government published a ‘running list’ of proposed amendments to the Bill some of which are backed by the government (and some of which may not be).
These include:
- Banning Non-Disclosure Agreements (NDAs) (including in settlement agreements) which cover harassment and discrimination at work.
- Softening the ban on fire & rehire.
- Major changes to whistleblowing laws.
- Changes to the complex zero hour worker rules.
We will have to wait and see whether the Government will support these changes and whether any more proposed amendments emerge!
We will, of course, keep you up-to-date on the above reforms, as and when more detail is available.
