The Employment Rights Bill: A new era for UK workplaces is around the corner
Blog • Umbrella Regulations • Oct 29, 2025 3:36:06 PM • Written by: Hamza Imran
The UK is on the verge of one of the biggest transformations in employment law for a generation. The long-anticipated Employment Rights Bill (the “Bill”) is now in the final stages of parliamentary debate, with the House of Commons and the House of Lords at odds over several key provisions. While Royal Assent is still expected, this latest back-and-forth may delay completion.
What’s happening?
After a year of parliamentary back-and-forth, the House of Commons has restored the government’s original version of the Bill, rejecting several proposed changes from the House of Lords. The result keeps the focus squarely on fairer work, stronger worker protections, and clearer employer obligations. However, on 28 October the Lords again voted to amend the Bill, most notably on unfair dismissal rights. The Commons is expected to push back, meaning this point remains unsettled.
Key reforms at a glance
- Fair work and enforcement
A new Fair Work Agency will take charge of enforcing areas like minimum wage and holiday-pay compliance, with added powers to inspect records and issue penalties. Employers will need robust systems to evidence compliance. - Day-one rights and stronger protections
Employees are set to gain stronger protections, but the detail is still being debated. The government and Commons support protection from unfair dismissal from day one, backed by a new statutory probationary framework of up to nine months (subject to consultation). The Lords, however, want to set a six-month qualifying period - shorter than the current two years, but not a true day-one right. - Ending “Fire and Rehire”
Dismissal and re-engagement on poorer terms will become automatically unfair, except in limited financial-survival scenarios. Employers considering contractual changes will need to explore genuine alternatives and ensure consultation processes stand up to scrutiny. - Fairer work for non-permanent staff
Zero-hours and agency workers will gain the right to a guaranteed-hours offer but the details are not final. The Commons favours a clear employer obligation to make such an offer, while the Lords have proposed that workers should instead be notified of the right, with the option to decline current and future offers, and that seasonal work must be taken into account when regulations are made.
- Safer and more respectful workplaces
Employers will face an “all-reasonable steps” duty to prevent harassment, including from third parties backed by potential enforcement action. NDAs attempting to silence discrimination or harassment allegations will be void. - Trade union and industrial relations changes
Notice periods for strikes shorten from 14 days to 10 days, electronic balloting becomes possible, and unions gain new digital and physical access rights to workplaces. The Lords continue to press for amendments on political fund contributions (to remain opt-in) and keeping the 50% turnout threshold for strike ballots, which remain under debate.
When will it all happen?
- April 2026: first wave of reforms (Fair Work Agency, statutory sick pay from day one, collective-redundancy penalties, day-one paternity and unpaid parental leave rights).
- October 2026: anti-harassment duties, fire-and-rehire ban, and expanded union access.
- 2027 onwards:
- 2027 onwards: proposed right to unfair dismissal from day-one of employment (still subject to final parliamentary resolution on qualifying periods and probation rules), proposed right to guaranteed-hours for zero/low-hours workers (details under debate), new rules on flexible-working refusals (employer must justify refusals); and further family-leave and bereavement leave reforms (e.g. neonatal, carers’ leave). Many of the exact definitions, procedures and timescales are still under review, subject to consultation and will be confirmed via secondary legislation.
What employers should do now
- Audit contracts and handbooks for probation, dismissal, sick pay, and zero-hours arrangements.
- Map your contingent workforce; identify where guaranteed-hours obligations might bite.
- Refresh policies on harassment and inclusion, ensuring managers understand new “all-reasonable steps” expectations.
- Strengthen payroll and record-keeping systems ahead of Fair Work Agency enforcement.
- Engage leadership early: incorporate these risks into your 2026 HR roadmap and training plans.
The bottom line
The Employment Rights Bill represents a decisive step towards a fairer, more transparent labour market. The exact shape of some reforms - particularly dismissal rights and guaranteed hours - is still being fought over in Parliament. For employers, it’s not just about compliance, it’s about future-proofing people practices for a world where fairness, flexibility, and accountability are the new norm. With Royal Assent delayed by parliamentary debate, we are closely monitoring the final stages of the Bill. As soon as the legislation is confirmed, Giant will share an updated overview to help our clients and partners understand what it means in practice. 2026 is closer than it looks. The smart move is to prepare now.
Giant continually monitors upcoming legislative and regulatory developments to ensure our business remains fully compliant. We proactively review emerging employment law changes and adapt our processes accordingly, so that our clients and workers can have complete confidence that we operate to the highest standards of compliance and best practice.
