Update to the Employment Rights Bill (July 2025)

Yesterday (1^st July 2025) the Government published their “roadmap for delivering change” outlining the current proposed timings for implementation of various measures in the Employment Rights Bill.  I say current proposed timings – there will be many who believe that the Government have dragged their feet on this.  There were strong promises about making changes within the first 100 days of the new Government, but that timescale only saw the initial proposals being published.

There were a few surprises in the announcement not least of which was the expectation that the proposals on guaranteed hours / zero hours contract changes, and day one protection from unfair dismissal won’t take effect until 2027 (no mention of when in 2027).

In addition, the legislation about “fire and rehire” won’t be brought in until October 2026 – as Darren Newman has commented in his excellent blog (“A Range of Reasonable Responses”), if the Government believe that the practice is inherently unreasonable and improper, then why wait a wait before outlawing it?  The current proposals are considered by many to be overly draconian and restrictive so maybe this is a chance for the Government to shepherd in some changes to make it more palatable to business?  There are proposed consultations to take place over the next year, and I would expect that these will inform the direction of change in the Bill.

In the list below, I’ve selected some of the long list of proposed introductions that I think are most relevant to my clients / contacts together with a brief assessment on each matter.  These are my comments and assessments but not drawn from any inside knowledge.

April 2026

Day One right to Paternity Leave and Unpaid Parental Leave.

Impact on businesses 1/5.

I don’t think that these changes will make a difference to the very low take up of these leave entitlements.

Statutory Sick Pay (removal of lower-earning limit and waiting period.

Impact on businesses 2/5.

The LEL change won’t affect the overwhelming majority of my clients, but the removal of the waiting period may, in my opinion, cause issues to businesses that don’t offer Company Sick Pay and where they have individuals who have multiple short periods of sick leave.

October 2026

Fire and rehire.

Impact on businesses 5/5

Until we get more detail on this, we cannot know for sure what impact this will have but in its current form, I would suggest this is a legislative change that could have a big effect on business.  Employer organisations are making representations to the Government, and it was a significant point in the amendments raised through the House of Lords stags of the Bill.  Watch this space.

Employer obligations to take all reasonable steps to prevent sexual harassment including by third parties.

Impact on businesses 4/5.

Again – we need detail from the Equality Commission whose Code of Practice will be the guiding force on this.  Employers have many questions as to the practicalities and realities of this matter.

Employment Tribunal Time limits.

Impact on businesses 2/5.

Not surprisingly the Government is reflecting pressure from Trade Unions to extend the time limit from the current three months to bring a tribunal claim.  I’d expect this to go to six months.

“Measures that will take effect in 2027”

I’ve put the title as a quote from the Government roadmap document – there is no more specific timing than this.  Is the lack of a prediction for April / October because the Government fully expect these elements to be kicked further down the road?

Rights for pregnant workers.

Impact on businesses 3/5.

This is expected to strengthen the protection against redundancy for pregnant employees or those recently returned from Maternity (or other Family) Leave. 

Right to request Flexible Working.

Impact on businesses 2/5.

The key change expected here is that a refusal of a flexible working request by an employer must be ‘reasonable’.  This is a slight extension of the current situation.

Bereavement Leave.

Impact on businesses 1/5.

Extension of right to bereavement leave past that which already exists for the death of a child.  Detail is needed as to whose bereavement would trigger the right to leave.

Ending ‘exploitative use’ of Zero Hours Contracts / Guaranteed Hours.

Impact on businesses 4/5.

Although few of my clients use ZHCs, the original proposed legislation was so complex it was a potential nightmare for businesses.  I think this can has been kicked down the road for a reason.

Day One right to protection for unfair dismissal.

Impact on businesses 5/5.

There is detail in the original proposals for an ‘initial period of employment’ that would look like a probation period (potentially up to nine months?) during which there would be a lighter touch process for dismissal.  However, the detail on this will be critical – one person’s ‘lighter touch’ approach is another person’s unfair dismissal.  Of all the proposed changes, I’d rank this as the one that has the biggest potential for impact.

If you have any questions on this, other measures in the Employment Rights Bill; or just want to speak about your business please don’t hesitate to get in touch.