The Employment Rights Bill (the Bill) is currently progressing through Parliament and is set to deliver many of the government’s manifesto commitments aimed at strengthening the rights of workers and employees. This legislation represents the most significant overhaul of employment rights in a generation.
On 1 July 2025, the government published an implementation roadmap , outlining the expected timeline for each measure in the Bill. Our tracker below has been updated accordingly.
A revised version of the Bill, incorporating all amendments to date, has also been released. The government now faces a decision: whether to accept the House of Lords’ recent amendments or allow the Bill to enter a “ping pong” phase between the two Houses this autumn.
Tracker of Key Provisions
| Topic | Planned Changes | How will the new law work? | Potential Risks if Ignored |
|---|---|---|---|
| Day-one unfair dismissal | The Bill proposes to make protection from unfair dismissal a “day one” right by repealing the current requirement for an employee to have two years’ service to claim ordinary unfair dismissal. The House of Lords, on the other hand, has suggested an amendment to this which instead simply reduces the qualifying period of service from two years to six months. The government must now decide whether to accept these amendments. The Bill also introduces the concept of an “initial period of employment”, during which a lower level of protection will apply, and compensation for unfair dismissal will be subject to a lower cap. | If the provisions of the Bill remain as a day one right, all workers will have protection from unfair dismissal from day one. The government has confirmed in its roadmap that the change itself will not take effect until 2027. | Failure to update contracts and implement robust probation procedures may leave employers vulnerable to claims without the traditional protection of the two-year qualifying period. In preparation of these likely changes, employers should consider taking steps now to enhance their recruitment procedures and strengthen their performance procedures for new hires during the probationary period. |
| Family Leave Rights | The Bill creates day-one rights to paternity leave and unpaid parental leave. The roadmap indicates that these changes are expected to take effect in April 2026. A statutory right to at least one week of unpaid bereavement leave on the death of a close relative will also be introduced as a day one right. The introduction of this right is expected to take effect in 2027. An amendment has been proposed which would extend parental bereavement leave to employees who suffer pregnancy loss before 24 weeks. This amendment was not adopted in the House of Commons, but it is reported to have cross-party support. | Employers will need to update leave policies and ensure management are aware that these entitlements apply from the first day of employment. Since statutory bereavement leave will be unpaid, its introduction will have limited impact. | Applying old eligibility rules could lead to a risk of discrimination or automatic unfair dismissal claims, especially in sensitive situations such as pregnancy loss or child bereavement. |
| Day-one Statutory Sick Pay (SSP) | The Bill proposes to broaden rights to SSP by making it payable from the first day of sickness absence and removing the lower earnings limit for eligibility. The government has recently confirmed its decision to introduce a taper to the current SSP rate (currently £118.75 per week) for those earning below the lower earnings limit, so that they are entitled to whichever is the lower of 80% of their average weekly earnings or the current SSP flat rate. The roadmap indicates that these changes are expected to take effect in April 2026. | Employers must ensure all eligible employees receive SSP from day one, regardless of income level. | Non-compliance could lead to backdated claims, penalties from HMRC, and reputational harm. In addition to this, employers that only provide SSP might see an increase in short-term sickness absence, given that employees will not lose out on as much pay if they take a few days off sick. Employers should therefore review their sickness / attendance management policies and consider whether absence trigger levels are set appropriately. |
| Extension of Limitation Periods | The Bill proposes to extend the limitation date to bring most employment claims. The roadmap indicates that this change is expected to take effect in October 2026. | The time limit for workers to bring claims in the employment tribunal will increase from three to six months. | With the increase in tribunal time limits, employers may face an increase in tribunal claims. However, longer timeframes could also reduce impulse litigation. |
| Flexible Working | The Bill adapts and builds on the April 2024 reforms to flexible working. An employer will only be permitted to refuse a flexible working request if: It considers that specified business ground(s) apply; and If it is “reasonable” for the employer to refuse the request on that ground(s). | Regulations will specify the steps an employer must take in order to comply with the requirement to consult with an employee before rejecting a flexible working request. Where the employee’s flexible working request is refused, the employer will be required to notify the employee of the ground(s) for the refusal and explain why it considers it “reasonable” to refuse the request. | The tribunals will also have a new power to consider a claim that the employer has “failed to act” in accordance with the new requirements. This appears to give the tribunals the power to check the employer’s rationale and consider the “reasonableness” of refusals. |
| Duty to prevent Sexual Harassment | The Bill proposes to strengthen the duty on employers to prevent sexual harassment at work by requiring them to take “all reasonable steps”, (as opposed to “reasonable steps” which has been the case since the preventative duty came into force on 26 October 2024). This provision is likely to come into force in October 2026. | Employers will need to demonstrate that they have taken all reasonable preventative measures, and separate regulations will set out examples of what could constitute “all reasonable steps”, expected in 2027. | Failure to comply with the preventative duty can lead to 25% uplift in compensation where an employee succeeds in a sexual harassment claim. Failing to act could potentially make it harder for employers to successfully defend sexual harassment claims, particularly if the employer is seen to have ignored cultural or systemic issues. |
| Third Party Harassment | The Bill also introduces a requirement for employers to prevent harassment by third parties (covering not just sexual harassment, but all types of harassment under the Equality Act 2010). The roadmap states that the government intends this provision to take effect in 2026. | The employer will be liable if a third party harasses an employee in the course of their employment with the employer, and the employer failed to take all reasonable steps to prevent the third party from doing so. | Employers will need to assess the risk of third-party harassment within their organisation and identify any further steps they could take to prevent such harassment. Policies must proactively address workplace harassment, and staff should receive training. |
| Fire and Rehire | Under the Bill’s original drafting, it will become automatically unfair to dismiss an employee for refusing to agree to a change to their terms and conditions of employment (fire and rehire), or to dismiss an employee and hire another employee on amended terms to carry out the same or substantially the same work (fire and replace). There is a very narrow exception to this provision – if the employer can demonstrate that the change in terms was necessary to alleviate serious financial difficulties that were likely to affect the ability to run the business as a going concern and could not reasonably have been avoided. However, proposed amendments have been submitted which make significant changes to the above, suggesting that the restriction on fire and rehire will now only cover situations where an employee is dismissed for failure to agree to specified ‘restricted variations’. Any new provisions will likely be implemented in October 2026. | Employers must consult meaningfully and explore alternatives before changing terms. If changes are imposed via dismissal and re-engagement, the new legislation must be followed. | A new statutory Code of Practice on fire and rehire/dismissal and re-engagement came into force on 18 July 2024, but this will be enhanced by further restrictions in the Bill. Ignoring the Code can result in a 25% uplift in any compensation awarded at tribunal and potential reputational damage. |
| Trade Union and Strikes | The Bill imposes provisions that aim to strengthen the rights of trade unions. The strike ballot and notice requirements will be relaxed, and electronic balloting will be introduced. The recently introduced legislation on minimum service levels during industrial action will be repealed and the trade union recognition process will be simplified and the thresholds reduced. In addition to this, employers will have a new duty to inform workers of their right to join trade union, which is to be included in the employment contract/statement of particulars. The provisions affecting trade unions and strikes are expected to be implemented in April 2026 and October 2026. | The Government’s plans are likely to mean trade unions will have a much greater role to play in employee relations. As a minimum, they will mean it is easier for trade unions to call strikes (and other industrial action) and harder for employers to manage strikes. They will also mean it is easier for trade unions to seek recognition. | All businesses should review and update their employment contracts to comply with the new requirement to provide a statement of trade union rights and for those that have recognised trade unions, you should prepare for the implications of lower threshold for statutory recognition, and ensure management and HR understand the implications of the new protections for workers engaging in lawful industrial action, particularly in terms of avoiding unlawful detriment. |
| Whistleblowing | The Bill will make express provision confirming that disclosure of a concern about sexual harassment will amount to a protected disclosure for the purposes of whistleblowing protection. The roadmap indicates that this change is expected to take effect in April 2026. The House of Lords has since amended the Bill to include new provisions regarding whistleblowing which: Require the government to make regulations extending protection against unfair dismissal; and require large employers (those with at least 50 employees or an annual business turnover or annual balance sheet of £10 million or more) and those with operations in financial services or vulnerable to money laundering or terrorist financing, to take reasonable steps to investigate any protected disclosure made to them. | To qualify for whistleblower protection, a worker who makes a disclosure must reasonably believe that they are acting in the public interest and the disclosure must constitute (1) a criminal offence, (2) a failure to comply with a legal obligation, (3) a miscarriage of justice, (4) a danger to health and safety, (5) damage to the environment, or (6) covering up wrongdoing in relation to one of those things. | This provision will likely improve employee awareness of whistleblowing protections and may increase the likelihood of claims. Employers will need to take additional care when dismissing or disciplining an employee who has previously raised a complaint or grievance about sexual harassment at work; even if the reason for dismissal / discipline is entirely unrelated. In addition, employers should consider implementing policies and training to ensure that protected disclosures are not left unconsidered after initially being raised by an employee. |
| The Fair Work Agency | The Bill gives the government power to create a single labour market enforcement body, which will be known as the Fair Work Agency (FWA). The roadmap indicates that this change is expected to take effect in April 2026. Given this timeframe, employers should use this time wisely to ensure they are fully compliant with laws to be governed by the FWA. | The FWA will take over the functions of the various existing enforcement bodies, covering minimum wage, SSP, modern slavery, and it will also be given responsibility for enforcing rights to holiday pay. | Given the complexity of certain areas of law that fall within the FWA’s remit (holiday pay in particular), there is a real risk that employers could face enforcement action for inadvertent non-compliance. |
| Holiday pay record keeping requirement | The Bill includes a provision, which, if enacted, will require employers to keep records demonstrating their compliance with workers’ rights to paid annual leave under the Working Time Regulations 1998. This record keeping is for a period of 6 years. This is not mentioned in the government’s roadmap, but it is expected to take effect in 2026. | This is a large administrative burden on employers. The law on holiday pay is extremely complicated so employers must ensure they are comfortable with not only the record keeping requirement, but also the way in which they calculate an employee’s holiday pay entitlement. | If it is found that an employer has failed to keep adequate records, they may be threatened by criminal liability and be subject to pay a monetary fine. |
| Collective redundancy | The Bill contains provisions designed to tighten up and reform the law relating to collective redundancies. Initially, the Bill contained provisions which would calculate collective consultation thresholds across all of an employer’s sites. However, a government amendment softens the Bill’s original proposals so that the trigger for the collective consultation duty will be either: 20 or more job losses at a single establishment/site within 90 days; or a minimum threshold of job losses (to be specified in regulations) across more than one establishment/site within 90 days. This reform is not expected to come into force until 2027. The government has also decided to double the maximum penalty for non-compliance with collective consultation obligations from 90 to 180 days’ gross pay per affected worker. This change is expected to occur in April 2026. | Much is still unknown about how the trigger will operate for multi-establishment redundancies. However, a second government amendment confirms that, where multi-site collective consultation is required, whilst this must be carried out with all appropriate representatives, it need not be carried out with them all together or with a view to reaching the same agreement with all of them. | If the penalty for non-compliance with collective consultation obligations rises from 90 days to 180 days’ gross pay per employee, employers need to bear in mind the associated risks and costs of non-compliance with legislation. The tightening of the thresholds regarding collective redundancies should also be in the forefront of employer’s minds when they are carrying out redundancy exercises. |
| Zero hours | Under the Bill, there will be a new right for zero, low or irregular hours workers to a “guaranteed hours offer” which reflects the number of hours they have regularly worked over an, as yet unspecified, reference period (which is expected to be 12 weeks), provided their work history satisfies certain conditions in respect of number, regularity or otherwise of the working hours. There are new provisions designed to give workers reasonable notice of shifts and to compensate them when shifts or working times are cancelled by an employer without reasonable notice. As indicated by the roadmap, these changes are due to be implemented in 2027. | These provisions began as a “right to receive” a guaranteed hours offer. However, on 14 July 2025, the House of Lords voted in favour of a significant amendment which replaces this with a “right to request” instead (essentially giving eligible workers the choice whether to request a guaranteed hours offer). If an eligible worker makes a request for a guaranteed hours offer, the employer must grant it. Workers will also have special legal protection against detriment/dismissal and in connection with the terms of the guaranteed hours offer. The government must now decide whether to accept this change or the Bill will enter a period of ping pong between both houses of parliament in the Autumn. | It will be automatically unfair to dismiss an employee if the sole or principal reason for dismissal concerns various rights relating to guaranteed hours offers, and workers will be protected from being subjected to a detriment relating to such offers. In practice, these provisions may result in a reduction in employers’ use of zero and low hours contracts, because the complexity of the requirements will make it less attractive for employers to operate such contracts. |
| Equality action plans | The Bill contains provisions which allow for regulations requiring public sector and large (250+ staff) employers to publish equality action plans no more than once a year. These changes are expected to become mandatory from 2027. | An equality action plan must show the steps that the employer is taking in relation to their employees regarding gender equality, including addressing the gender pay gap and supporting employees going through the menopause. | Those employers who currently limit their gender pay gap reporting to the minimum legal requirement may wish to consider what their action plan might look like in preparation for when this requirement takes effect. |
| Confidentiality provisions | Government-backed amendments to the Bill laid on 7 July 2025 include new provisions which will, if enforced, render any confidentiality/non-disclosure provision (often called NDAs) in an agreement between an employer and a worker (whether in an employment/worker contract or not) void and unenforceable, if the provisions purport to prevent a worker from making an allegation or disclosing information relating to work-related harassment and discrimination. | The prohibition will apply both where the worker themself is a victim of discrimination or harassment and where they are a witness to discrimination or harassment. Regulations will set out circumstances in which NDAs concerning relevant discrimination or harassment can be used. More detail in relation to this is still unknown. | Much of the risk imposed on employers will depend on how regulations define ‘excepted agreements’ which the government has confirmed it will consult on. Ultimately, if implemented, it is likely that employers will see an increase in litigation – there is less incentive to settle potential harassment/discrimination claims if they do not require the individual to keep the details confidential. |
| Umbrella Companies | The Bill introduces a formal definition of “umbrella companies” as entities that employ individuals and supply their labour to third-party end clients—or manage pay on behalf of such individuals. These are now explicitly treated as employment businesses. Separately, in the Autumn Budget 2024, the government confirmed plans to shift responsibility for operating PAYE from umbrella companies to end clients, with effect from April 2026. The roadmap states that consultation will begin in autumn 2025, with measures expected to take effect in 2027. | This means that umbrella companies will fall under the oversight of the Employment Agency Standards Inspectorate and later the Fair Work Agency. This essentially brings them into the same regulatory framework as recruitment agencies. | As workers engaged through umbrella companies will now likely enjoy the same protections as those working via recruitment agencies, end clients may reassess the viability of using umbrella arrangements. At the same time, umbrella companies will need to adapt their practices to ensure compliance with the new regulatory framework. |