Employment Rights Bill 2025

Following recent discussions in Parliament, the government has announced major amendments to the Employment Rights Bill (ERB), which are expected to become law by Summer 2025. These changes aim to strengthen worker protections, close legal loopholes, and create fairer workplace practices across the UK.

As part of its 'Make Work Pay' initiative, the government is focusing on raising living standards, ensuring job security, and expanding opportunities for employees. The ERB introduces key reforms that will provide workers with stronger rights from day one, prevent exploitative employment practices, and improve workplace protections.

The new legislations include:

The right to protection against unfair dismissal from day one of employment

A welcome change to this bill is the introduction of 'Day one' rights for employees. Since 2012, employees have only been able to challenge a dismissal after completing a qualifying period; usually two years. The government has now proposed restoring day-one rights for employees and has stated that ‘reforms of unfair dismissal will take place in and around August 2026’ to establish clearer protections for workers and to allow employers to adapt to the changes. Until then, the two-year qualifying period will remain in place.

Limitations on Dismissal and Reemployment Practices

The ERB also addresses the issue of dismissing workers. It aims to reform how employers change contracts by restricting 'fire and rehire' practices. This new reform will mean it will be deemed unfair to dismiss an employee for varying a contract without the employee giving consent, or if an employer re-hires the same employee or hires someone else under that a new contract to essentially perform the same duties.

A key driver behind the push for this reform was the high-profile case of British Gas who caused outrage back in 2021 when 500 engineers were fired because they refused to accept new contracts with worse terms. Additionally, PO Ferries were also tied up in mass sackings over a similar situation. Hence why this reform is a welcomed reform and will protect many employees from being unfairly dismissed or pressured into accepting worse working conditions. By closing loopholes this reform ensures greater job security and fairer treatment for workers.

Harassment in the workplace

The new rules introduced in October 2024 by the government requires employers to take reasonable steps to prevent. However, the ERB goes a step further by firming up workplace harassment laws. Employers will now be held responsible for preventing harassment by third parties (such as customers or clients), not just their own employees. In addition, if a worker reports sexual harassment, then their disclosure will now be legally protected under whistleblowing laws, meaning they will be protected from retaliations for speaking up. A key driver for this bill was the 2021 court case with Turtle Bay restaurant, where a female employee was frequently harassed by customers and the company failed to intervene. The case highlighted a number of legal loopholes where employers were not legally required to protect its workers from third party harassment. The ERM now makes it clear that business should be protecting its workers from harassment whether it being by a colleague or third-party.

Tighter Controls on Zero-Hours Employment

The introduction of new rules to zero working hours has also been put forward by the ERB. Employers must offer guaranteed hours to workers who regularly work more than their contracted hours. Additionally, unlike before where workers would not be paid for shifts that were cancelled or cut short, this has now been reversed, and zero contractor workers will now be paid for these cancelled or shortened shifts as compensation for lost earnings. These changes were introduced in response to the rise of the gig economy and platform-based work, with legal cases involving Uber and Deliveroo highlighting the need for stronger worker protections.

Enhancing Employee Rights for Flexible Working

New rules will see employees have greater access to flexible working. Employers can now only refuse a request for flexible working if there is a clear and reasonable justification. They must also explain their reasons in detail, rather than just simply rejecting the request. These changes aim to create a fairer and a more transparent process, making it easier for workers to balance their jobs with any their personal commitments.

The new Employment Rights Bill marks a significant step towards fairer workplace practices and stronger protections for employees across the UK. By addressing these key issues, the introduction of these reforms will help in creating a more secure and balanced work environment.

As the bill progresses towards becoming law in Summer 2025, businesses will need to adapt to these new standards, ensuring compliance while promoting a fair and supportive work environment for all. For employees, these changes offer greater stability, transparency, and protection, reinforcing the principle that work should be fair, secure, and respectful for everyone.