The Employment Rights Bill (ERB) is a major reform proposed by the UK Government to modernise employment law, strengthen workers’ rights, and update protections and procedures around dismissal, parental leave, union activity and more.
Laid before Parliament in October 2024, the Bill is part of the broader “Plan to Make Work Pay” agenda. The proposals include: banning exploitative zero-hour contracts, limiting “fire and rehire” practices, strengthening protections for those taking industrial action, enhancing parental and paternity leave, improving sick pay rights, boosting protections for pregnant workers, and establishing a new enforcement body, the Fair Work Agency.
If enacted, the Bill would significantly reshape UK labour law and the balance between employer flexibility and worker security.
Where the Bill is now: December 2025 update
- The Bill is currently in its “final stages” in Parliament (House of Lords consideration, amendments and disagreements remain).
- The Government expects to secure Royal Assent before the end of 2025, though an exact date has not been announced.
- Parts of the Bill will take effect soon after it becomes law; other changes are scheduled for implementation across 2026 and 2027.
- On 27 November 2025, the Government published an update confirming a key compromise: the qualifying period for unfair dismissal claims will be reduced from 24 months to 6 months, rather than providing “day-one” dismissal protection as originally promised.
- In the same update, the Government committed to: deliver “day-one rights” for sick pay and paternity leave from April 2026; establish the Fair Work Agency; and lift the compensation cap on unfair dismissal (previously the cap limited how much someone could claim).
This compromise reflects delicate negotiations between government, employers and trade unions and, critically, ensures the Bill remains on track for passage without stalling.
Key changes workers and employers should know about
Earlier Rights — Sick Pay, Paternity Leave, Parental Leave & More
- From April 2026 (assuming Bill becomes law), paternity leave and ordinary parental leave will become a “day-one right”, meaning employees will be eligible from their first day of employment, rather than having to wait weeks or months under current law.
- Statutory Sick Pay (SSP) is due to improve: the Bill proposes eligibility from the first day of illness, rather than the current 4th day; and removing the lower earnings threshold which currently prevents low-paid workers from claiming SSP.
Unfair Dismissal — Lower Threshold, Greater Protection
- The qualifying period for unfair dismissal claims will drop from 2 years to 6 months. This gives workers quicker access to legal recourse if they’re dismissed unfairly.
- The Government has also committed to lifting the existing cap on compensation for unfair dismissal.
Better Protection for Industrial Action, Union Rights, Redundancies, and Harassment Victims
- The Bill aims to strengthen protections for workers who take part in industrial action: dismissals for participating will become “automatically unfair,” and the current 12-week limit on contesting dismissal will be removed.
- Trade union processes will be simplified: easier recognition, ability to vote electronically, shorter notice periods for industrial action, longer mandates (from 6 to 12 months), and removal of some procedural requirements such as picket supervisors.
- More robust safeguards for harassment and discrimination: for example, the Bill plans to treat sexual harassment as a “qualifying disclosure” under whistleblowing laws, giving stronger protection to employees who report it.
- The new Fair Work Agency is expected to enforce a wide range of rights, including holiday pay, sick pay, and workers’ rights under the Bill.
Zero-Hour Contracts, “Fire and Rehire,” Umbrella Companies & Flexible Working
- The Bill intends to ban exploitative zero-hour contracts and curb “fire and rehire” practices — i.e. dismissing staff and rehiring them on worse terms.
- There are plans to regulate umbrella companies more strictly and bring them under broader labour law definitions, closing loopholes that contractors and disguised workers may use.
- In 2027, the Bill may introduce legal requirements around flexible working: if employers reject a flexible working request for business reasons, they would need to provide written reasons and justify that refusal.
Why the November 2025 agreements matters
- The compromise announced on 27 November 2025 reducing the unfair dismissal qualifying period to 6 months, rather than day-one was critical to getting the Bill over the finish line. It demonstrates the Government’s willingness to negotiate with business and trade unions, keeping the legislative timetable on track while still delivering many of the reforms promised under the Plan to Make Work Pay.
- By preserving day-one rights for sick pay and paternity leave and committing to lifting the compensation cap, the update suggests a significant expansion of worker protections, even if some provisions were softened.
What’s still uncertain and what to watch
- The exact date of Royal Assent remains unannounced. The Bill is in its final parliamentary stages.
- Some proposals remain subject to consultation: for example, changes to collective redundancy rules, umbrella-company regulation, tipping laws, flexible working, and details of harassment protections.
- It is still unclear whether certain benefits, for example statutory bereavement leave under the Bill, will be paid or unpaid.
As these details continue to shift, it’s crucial for both employers and employees to stay informed. GLP Solicitors’ specialist Employment Law team is closely monitoring the Employment Rights Bill as it progresses through Parliament. Our solicitors advise on unfair dismissal, workplace policies, parental leave rights, union matters, and all evolving areas of employment legislation. If you are unsure how these upcoming reforms may impact your business or employment rights, GLP Solicitors can provide tailored, up-to-date guidance to help you prepare with confidence.