The Employment Rights Bill: Where Are We Now?
The Employment Rights Bill, introduced in the House of Commons on 10 October 2024, has been progressing steadily through Parliament. Following its third reading in the House of Lords, the Bill was passed and returned to the Commons with some amendments. The government and the Lords are still resolving differences, entering the familiar stage of “parliamentary ping pong”.
With Parliament set to recess soon for the party conference season, the government has a limited window to secure the Bill’s passage. Once agreed, the Bill is expected to receive Royal Assent in autumn 2025, officially becoming the Employment Rights Act 2025.
📅 Phased Implementation Roadmap
The government released a phased roadmap on 1 July 2025, outlining when specific changes will take effect through 2026 and 2027. Here’s a summary:
Immediate Reforms Upon Royal Assent (Autumn 2025)
Repeal of the Strikes (Minimum Service Levels) Act 2023 and key elements of the Trade Union Act 2016.
Removal of the 10-year ballot requirement for trade union political funds.
Simplification of industrial action and ballot notices.
Protection from dismissal for participation in lawful industrial action.
From April 2026
New day-one rights: Unpaid parental leave and statutory paternity leave, removing qualifying periods.
Strengthened whistleblower protections, including recognition of workplace sexual harassment complaints as protected disclosures.
Reform to statutory sick pay, removing lower earnings limits and the three-day waiting period.
Creation of a Fair Work Agency to oversee compliance, arbitrate disputes, and enforce core provisions.
Changes to collective redundancy rules: Doubling of the maximum protective award.
Simplified trade union recognition: Electronic balloting and relaxed strike ballot notice requirements.
From October 2026
Proactive duty on employers to take all reasonable steps to prevent sexual harassment.
Third-party harassment provisions, ensuring contracts with clients and suppliers include clear behavioural expectations.
Ban on fire-and-rehire practices, making certain dismissals automatically unfair.
Increased tribunal time limits: From three months to six months.
New rules on tipping and gratuities, ensuring fair distribution to staff.
Fair pay agreements: Starting with adult social care, plus expanded trade union rights.
From 2027 Onwards
Day-one unfair dismissal rights, removing the two-year service requirement.
Expanded protections for pregnant employees, including statutory bereavement entitlements.
Umbrella company regulation and tighter zero-hour contract protections.
Mandatory gender pay gap and menopause action plans.
Ban on non-disclosure agreements used to silence victims of harassment or discrimination.
⚖ Government vs House of Lords: Key Differences
Some areas are still under negotiation:
Zero-hour contracts
Government Proposal: Automatic minimum hours once threshold exceeded.
House of Lords Proposal: Rights apply only upon employee request.
Day-one unfair dismissal
Government Proposal: Light touch during probation (potentially 9 months).
House of Lords Proposal: Claims only after 6 months’ service.
Fire-and-rehire
Government Proposal: Ban on dismissal for contract refusal.
House of Lords Proposal: Exceptions allowed via 6-point checklist.
✅ What Employers Should Do Now
Even though many reforms are not yet in force, now is the time to:
Review policies and contracts to identify gaps in compliance.
Train HR teams on upcoming employee rights and protections.
Plan for payroll, leave, and employment practice updates, especially around whistleblowing, parental leave, and industrial action.
Consider professional support, such as Robinson Ralph’s Employer Protect Retainer, for cost-effective compliance and expert guidance.
The Employment Rights Act 2025 will bring significant changes, increasing protections for employees and raising the compliance bar for employers. Early preparation will ensure businesses are ready to navigate the new landscape successfully.
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