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Employment4 min read

Employment Rights Bill 2025 UK: What's Changing and When

The Employment Rights Bill 2024-25 introduces major changes to UK employment law, including day one unfair dismissal rights, strengthened trade union rights, and new protections for workers. Here is what is expected and when.

fairead Team4 June 2026

The Employment Rights Bill is the biggest overhaul of UK employment law in a generation. Introduced in October 2024 and expected to receive Royal Assent in 2025, with most changes taking effect from 2026 onwards, the Bill will fundamentally reshape workers' rights across Great Britain.

This guide covers the key changes and what they mean for employees and employers.


Day One Unfair Dismissal Rights

The most significant change in the Bill: employees will have the right to claim unfair dismissal from day one of employment — no more waiting 2 years.

What this means:

  • Employers will need to follow a fair process before dismissing any employee, regardless of length of service
  • A new initial period of employment (the government has indicated around 9 months) will allow employers to manage probationary performance, but must still involve a fair process
  • The change is expected to come into force no earlier than Autumn 2026

Strengthened Rights Against Fire and Rehire

The Bill significantly restricts the practice of "fire and rehire" (dismissal and re-engagement on changed terms):

  • Dismissal to impose new terms will be automatically unfair unless the employer can show a financial crisis that would genuinely put the business's survival at risk
  • The ACAS Code already restricts this practice; the Bill goes further
  • The protection applies regardless of length of service

Expanded Flexible Working Rights

Building on the April 2024 changes (day one right, two requests per year), the Bill:

  • Makes flexible working the default — employers must explain why they cannot accommodate requests
  • Strengthens the grounds on which refusal must be justified

Guaranteed Hours for Zero-Hours Workers

Workers on zero-hours or low-guaranteed-hours contracts who regularly work more hours than their contract guarantees will have the right to be offered a contract reflecting their actual worked hours after a 12-week reference period.

This is one of the most significant changes for the gig economy and hospitality, retail, and care sectors.


Strengthened Trade Union Rights

The Bill:

  • Repeals the minimum service levels requirements introduced by the Strikes (Minimum Service Levels) Act 2023
  • Simplifies trade union recognition procedures
  • Reduces the notice period for industrial action from 14 to 10 days
  • Removes requirements for union members to re-ballot if industrial action is ongoing

Statutory Sick Pay Reforms

  • Day one SSP — removes the current 3-day waiting period
  • The lower earnings limit for SSP eligibility is removed, meaning very low earners will also qualify

These changes are expected to come into force April 2026.


Bereavement Leave

The Bill extends the right to paid bereavement leave to cover the loss of any close relative, not just a child. Parents currently have 2 weeks' parental bereavement leave — the Bill expands coverage.


Neonatal Care Leave Already in Force

Neonatal care leave (up to 12 weeks for parents of premature or sick babies) was introduced separately from the Bill and came into force in April 2025. See our Neonatal Care Leave guide.


What Is NOT Changing (Yet)

  • The 2-year qualifying period for redundancy pay remains (though day one unfair dismissal may make this less significant in practice)
  • The basic structure of employment status (employee/worker/self-employed) is not being fundamentally reformed (though a later review is planned)
  • Holiday pay rules for irregular hours workers are not being changed by the Bill

Timeline (Expected)

ChangeExpected Date
Day one unfair dismissalAutumn 2026 (earliest)
Zero-hours guaranteed hours2026
Fire and rehire restrictionsFrom Royal Assent
SSP day one and expanded eligibilityApril 2026
Trade union changesVarious from Royal Assent

Key Takeaways

  • The Employment Rights Bill is the biggest employment law reform in a generation
  • Day one unfair dismissal rights are coming — likely Autumn 2026
  • Zero-hours workers will be entitled to guaranteed hours contracts reflecting their actual working patterns
  • Fire and rehire will become much harder to justify
  • SSP from day one and for all low earners — from April 2026
  • Check back for updates as the Bill progresses and implementation dates are confirmed

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