The Employment Rights Bill 2025 represents one of the most significant overhauls of UK employment law in a generation. Following months of parliamentary debate and “ping-pong” between the House of Commons and the House of Lords, the Bill has now been formally approved by the Lords and is approaching its final stage.
The only step remaining before the Employment Rights Bill 2025 becomes law is Royal Assent, which is expected before Christmas, although the exact date has not yet been formally confirmed. Once Royal Assent is granted, the Bill will become an Act of Parliament, but crucially, this does not mean all changes will take effect immediately.
For employers, this period is not one to wait and see, but an opportunity to prepare.
What happens next with the Employment Rights Bill 2025?
Once Royal Assent is confirmed and the final Act is published, we will gain clarity on:
- Which provisions of the Employment Rights Bill 2025 take effect immediately
- Which changes have fixed future implementation dates
- Which will be introduced later through commencement regulations
This staggered approach means businesses will need to stay informed and flexible, as new obligations may apply at different times rather than all at once.
Key changes introduced by the Employment Rights Bill 2025
While full details and timelines are still being finalised, the Employment Rights Bill 2025 introduces a number of headline reforms that will significantly increase compliance obligations for employers.
Changes to unfair dismissal rights
One of the most impactful aspects of the Employment Rights Bill 2025 is the proposed reduction in the qualifying period for unfair dismissal claims. This would allow more employees to bring claims earlier in their employment, placing greater importance on fair recruitment decisions, structured probation processes and well-documented performance management from day one.
Zero-hours contracts and predictable working patterns
The Employment Rights Bill 2025 introduces new rights aimed at providing workers with more predictable working hours. While the precise scope and application of these measures will be confirmed through later regulations, employers who rely on variable or flexible staffing models should begin reviewing how working hours are offered and managed.
Fire and rehire: stronger safeguards
Dismissal and re-engagement practices are also being tightened under the Employment Rights Bill 2025. Employers will be expected to demonstrate genuine consultation, explore alternatives and follow strengthened procedural safeguards before considering fire-and-rehire strategies. Poor handling in this area could expose businesses to both legal and reputational risk.
Expanded harassment prevention duties
Another key feature of the Employment Rights Bill 2025 is the expansion of employer duties to prevent harassment. This includes clearer expectations around proactive prevention and protection from third-party harassment, such as from customers or clients. Policies alone will no longer be enough; employers will need to show meaningful action through training, reporting mechanisms and workplace culture.
Sick pay, family leave and day-one rights
The Employment Rights Bill 2025 also widens access to statutory sick pay and family-related leave, with more day-one rights for employees. While implementation dates are still to be confirmed, employers should anticipate updates to policies, payroll systems and manager guidance once the timetable is published.
A new Fair Work Agency
To support enforcement, the Employment Rights Bill 2025 creates a new Fair Work Agency. This body will have powers to enforce employment rights proactively, signalling a move towards increased oversight rather than relying solely on individual employee claims.
What should employers be doing now?
Although not all provisions of the Employment Rights Bill 2025 are in force yet, there are practical steps businesses can take now to reduce risk and avoid rushed changes later:
- Review contracts, policies and procedures
- Train managers on fair process, consultation and documentation
- Identify higher-risk areas such as dismissals, working hours and harassment
- Budget for potential cost increases linked to compliance
For many organisations, especially smaller employers, navigating these changes alone can be challenging.
How our HR support can help your business prepare
Access to the right HR support can make a significant difference when dealing with major legislative change. Whether through ad hoc HR support for specific issues or retained HR services for ongoing compliance, professional guidance can help ensure changes are implemented correctly and proportionately.
Working with an experienced HR consultant allows employers to understand what the Employment Rights Bill 2025 means in practice for their specific business, rather than relying on generic advice. This is particularly valuable for companies seeking practical, proportionate HR advice for small businesses, where resources and internal expertise may be limited.
How Blue Tree HR Solutions can support you
Once Royal Assent is confirmed and the full implementation timetable for the Employment Rights Bill 2025 is published, Blue Tree HR Solutions will review exactly:
- What applies to your business
- When it applies
- What practical steps you need to take
Whether you need one-off guidance or ongoing support, our retained HR and ad hoc HR services are designed to help businesses remain compliant, confident and prepared as employment law continues to evolve.
If you would like tailored advice on how the Employment Rights Bill 2025 may affect your organisation, please get in touch with Blue Tree HR Solutions for expert support.