Employment Rights Bill: What’s Changing for Workers & Employers in 2025-26
The Employment Rights Bill, introduced in October 2024, is being described as the most substantial overhaul of UK labour law in decades. Designed to strengthen worker protections while reshaping employer obligations, the Bill is moving through Parliament with debate intensifying on its potential impact. Here’s a closer look at what the reforms mean, and the arguments on both sides.
Key Changes in the Bill
The Bill outlines around 28 reforms, many of which have been amended through consultation. Some headline changes include:
- Ban on exploitative zero-hours contracts: Employers must provide contracts that reflect actual hours worked. “This will end the uncertainty faced by thousands of workers trapped in insecure jobs,” said TUC General Secretary Paul Nowak.
- Sick pay from day one: All workers will be entitled to statutory sick pay without a waiting period. “No one should be punished for falling ill,” Labour MPs argued during debate.
- Expanded unfair dismissal rights: Protections will apply from day one in many cases, compared to the current two-year requirement. Critics, however, warn it “could make it harder for small firms to take risks on new hires,” said Craig Beaumont from the Federation of Small Businesses.
- Harassment and third-party protections: Employers will be liable if staff suffer harassment from clients or customers unless they can prove preventative steps were taken.
- Pay transparency and equality duties: Companies with more than 250 employees must publish equality action plans, including gender pay gap measures.
- Family and bereavement leave expansion: Includes statutory leave for pregnancy loss before 24 weeks, as well as updated parental and paternity leave entitlements.
Implementation Timeline
Some measures are expected to begin in 2026, such as zero-hours reforms and equality reporting duties, while more complex elements like unfair dismissal changes may not be fully implemented until 2027. Employers are being urged by legal advisors to start reviewing contracts and HR policies ahead of time.
Supporters Welcome Stronger Protections
Supporters of the Bill argue it delivers fairness in the workplace. “This is about giving working people dignity and security, something long overdue,” said Deputy Prime Minister Angela Rayner. Labour MPs have framed it as correcting years of casualisation in the UK job market.
Unions have strongly backed the reforms. “Too many workers live at the mercy of unpredictable hours, insecure pay and weak protections. The Employment Rights Bill gives them a fairer deal,” said Sharon Graham, General Secretary of Unite.
Critics Warn of Burdens on Employers
Business groups, however, are raising concerns about costs and unintended consequences. The Institute of Directors warned that “employers will face a heavier regulatory burden at a time of economic uncertainty.” Some SMEs fear the end of zero-hours flexibility could reduce job opportunities in hospitality and retail sectors.
“We support fairness, but one-size-fits-all legislation risks creating rigidity in industries that need flexibility to survive,” said a spokesperson from the British Chambers of Commerce.
Tribunal Delays Remain a Sticking Point
Even supporters acknowledge that without tackling tribunal delays, the reforms could be undermined. As one employment lawyer noted: “Rights on paper mean very little if workers have to wait years to enforce them.” Union leaders have pressed the government to invest in the tribunal system to prevent backlogs from worsening.
What It Means for Workers and Employers
For employees, the Bill promises greater job security, more predictable pay, and stronger protections against harassment. For employers, it brings higher compliance requirements and the need to review contracts, pay practices, and grievance procedures.
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By Fidelis News Staff | 16 September 2025
