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 finally approaching the finish line, with Royal Assent expected within weeks.
For recruitment agencies, umbrella companies, and other intermediaries in the supply chain, the message is clear: the next two years will demand more structure, more transparency, and stronger compliance systems than ever before.
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.
The government has confirmed that further consultations will follow on several detailed areas including trade-union balloting, “fire-and-rehire” restrictions, the proposed right for zero-hours and agency workers to receive a guaranteed-hours offers after a qualifying period, day-one unfair-dismissal rights, and new safeguards for pregnant employees and bereavement leave.
It’s a busy legislative agenda and it’s about to reshape the workplace. Here are the key changes that every recruiter and umbrella provider need to have on their radar:
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 will gain protection from unfair dismissal from day one, replacing the current two-year qualifying period. The Bill also strengthens day-one rights to paternity and parental leave and brings statutory sick pay forward so it’s payable from the first day of illness. - 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 and minimum notice for shifts and cancellations. For agency workers, this obligation will sit with the end hirer, but both agency and umbrella company will share responsibility for shift-notice and short-notice payment obligations. - 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. These changes mark a major modernisation of the UK’s collective-labour framework.
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: proposed right to unfair dismissal from day-one of employment, proposed right to guaranteed-hours for zero/low-hours workers, 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. 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 expected imminently, 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.
