Editor's note – October 2026
This article was originally published in October 2024, following the introduction of the Employment Rights Bill.
The legislation has since been enacted as the Employment Rights Act 2025, and several of the original proposals and implementation dates have changed.
This article is retained as a record of the proposals announced at the time and should not be relied upon as a statement of current employment law.
For the latest confirmed changes, implementation dates and upcoming requirements for employers, read our Employment Rights Act: a roadmap for employers.
The new Labour government has promised to deliver ‘the biggest upgrade to rights at work for a generation’ with the introduction of the Employment Rights Bill on 10 October 2024. This signals significant changes for employers across the country.
The legislation, as part of the Government’s ‘Make Work Pay’ agenda, will include 28 individual employment reforms, including the end of zero-hours contracts, extending family leave and introducing streamlined processes for dismissal.
This guide is designed for employers, HR leaders and business owners who want to get ahead of the upcoming changes. You’ll learn what the Employment Rights Bill covers, how it affects your business and the practical steps you can take now to prepare, helping you future-proof your HR policies and safeguard your business.
Want expert legal advice on how to navigate the changes ahead? Speak with our experienced employment law solicitors today and make sure your business is ready for the new landscape.
Day-one employment rights
Employees will have enhanced protection from their first day, including the right to unfair dismissal protection and parental leave. While businesses can still use probation periods, this change could lead to increased risk of tribunal claims early in employment.
Reviewing your onboarding and probation processes will be essential to reduce the risk of potential claims effectively.
Zero-hours contracts
The Bill is set to clamp down on ‘exploitative’ zero-hours contracts by giving workers the right to a contract that reflects their actual hours and receive adequate notice of any shift changes.
This change will likely affect certain sectors including hospitality, health, social care and retail, where flexibility is key.
Employers may need to rethink their staffing models and make sure contracts are more reflective of regular working patterns to avoid penalties.
Ban on fire-and-rehire
The controversial practice of firing and rehiring employees on less favourable terms will be banned.
Businesses that have relied on this method for restructuring will need to explore alternative approaches to workforce changes. This may require a more strategic focus on negotiation and consultation processes with employees.
Enhanced Statutory Sick Pay (SSP)
The Bill removes the lower earnings limit and the abolition of the three-day waiting period for SSP. More employees will qualify for sick pay from the start.
You will need to consider the potential increased costs associated with offering sick pay to a broader section of your workforce and may need to implement stronger absence management procedures to mitigate potential misuse. You can read more about the changes introduced in April 2025 in employment law.
Changes to family-related leave
The Bill strengthens protection against dismissal for pregnant women and new mothers, including during pregnancy, maternity leave, and six months after returning to work.
This could affect staffing coverage if employees take extended leave. Updating your employee handbook and managing temporary staffing or role-sharing solutions will be crucial.
Changes to flexible working requests
The Employment Rights Act 2025 introduces further changes to the statutory framework for requesting flexible working, which are expected to take effect in autumn 2027.
Employees already have the right to request flexible working from their first day of employment. The new reforms will strengthen the requirements employers must meet when considering whether to refuse a request.
In particular, employers will need to demonstrate that a refusal is reasonable in the circumstances, relying on one or more of the existing statutory business reasons. They will also need to follow prescribed consultation steps before refusing a request.
The detailed regulations and revised Acas Code of Practice are still being finalised.
Fair pay agreements
Initially targeted at the adult social care sector, this reform introduces sector-wide pay standards, which could be expanded to other industries over time.
Organisations in sectors where low pay is prevalent should prepare for potential increases in wage costs and review their budgeting and forecasting practices accordingly.
What the Bill doesn't include, yet...
The Bill will also consult on a number of other changes:
- A new statutory probation period for companies which could help to balance the new employee ‘day-one’ rights.
- The Right to Switch Off – a move to protect employees from being contacted out of hours, except in exceptional circumstances.
- Expanding the Equality (Race and Disparity) Bill - mandatory for large employers to report on ethnicity and disability pay gap.
- Moving towards a single status of worker, simplifying the employment status framework.
- Reviewing parental and carers' leave to make sure they're right for employers, employees and their families.
How should businesses prepare?
The Employment Rights Bill represents the most significant overhaul of UK employment law in decades, and businesses must start preparing now.
- Review and update your policies: many of the changes introduced by the Employment Rights Bill will require you to update existing policies or implement new ones. This includes your flexible working policies, harassment prevention procedures, and family leave entitlements.
- Communication and training: your staff will need to be aware of their new rights, and managers will need to understand the implications of managing requests and disputes. Training will be a key factor in ensuring smooth implementation.
- Monitor costs and workforce planning: while the bill aims to support employees, organisations will need to plan carefully to manage potential increased costs, especially when it comes to covering absences or responding to flexible working requests. Be proactive in evaluating how these changes impact your bottom line.
- Legal advice: the changes to employment law are significant, and non-compliance could lead to costly tribunal claims. It’s essential to seek professional legal advice to guide you through the complexities of the new legislation.
By staying informed and taking steps to adapt to these changes, you can make sure your business remains compliant and continues to thrive in the evolving legal landscape.
We can help. There is a huge amount of information to absorb and understand from these changes. If you need guidance on how to prepare your business for the new regulations, our experienced employment law solicitors are on hand. Please get in touch.
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