Written by Joanne Hughes, Policy & Compliance Specialist at Policy Pros | Last reviewed: March 2026

Employment Rights Bill 2025: What It Changes and How to Prepare

The Employment Rights Bill represents the most significant overhaul of UK employment law since the Employment Rights Act 1996. Having passed through the Committee stage in early 2025 and received its third reading, the Bill is expected to receive Royal Assent and begin phased implementation through 2025 and 2026.

For UK employers, this is not a future concern — it is an immediate priority. The Bill introduces fundamental changes to unfair dismissal protections, flexible working rights, zero-hours contract arrangements, trade union rights and employer duties around harassment prevention. Each of these changes has direct implications for existing policies, contracts and management practices.

We previously outlined the key reforms in our earlier article published here. This updated guide provides a comprehensive summary of what is changing, which policies need updating, and a practical timeline and checklist for preparing your organisation.

Summary of Key Changes Under the Employment Rights Bill 2025

The Bill introduces a wide-ranging package of reforms. The most significant provisions, each of which has direct policy implications, are outlined below.

Day-one unfair dismissal protection: The Bill removes the current two-year qualifying period for bringing an unfair dismissal claim under the Employment Rights Act 1996. Once this provision commences, all employees will have the right not to be unfairly dismissed from their first day of employment. The government has indicated that a statutory probationary period (expected to be nine months) will be introduced to allow employers to assess suitability, but the dismissal during this period will still need to follow a fair process — meaning employers cannot simply dismiss without reason or procedure during probation.

Zero-hours contract rights: Workers on zero-hours contracts or arrangements with low guaranteed hours will gain the right to be offered a contract reflecting their normal working hours, based on a reference period. This provision amends the Employment Rights Act 1996 by inserting new protections for workers on variable-hours arrangements. Employers who rely on zero-hours or casual contracts will need to implement new processes for calculating and offering guaranteed hours.

Flexible working as a default: Building on the 2024 changes that made flexible working a day-one right, the Bill strengthens the requirement further. Employers must not only consider flexible working requests but must demonstrate that any refusal is both reasonable and based on one of the permitted statutory grounds. The Bill also requires employers to explain what alternative arrangements they have considered before refusing a request. This provision interacts with the Employment Rights Act 1996, Part 8A.

Strengthened trade union rights: The Bill introduces new rights of access for trade union officials to workplaces, new requirements around information and consultation with trade union representatives, and simplification of the union recognition process. These provisions amend the Trade Union and Labour Relations (Consolidation) Act 1992 and require employers to review their employee relations policies and procedures.

Fire-and-rehire restrictions: The Bill makes it automatically unfair to dismiss an employee for refusing to agree to a variation of their contract of employment. This effectively ends the practice of "fire and rehire" — dismissing employees and offering to re-engage them on less favourable terms — except in very limited circumstances where the employer can demonstrate that the variation was necessary to prevent the business from becoming insolvent.

Prevention of sexual harassment: The Bill strengthens the duty on employers to take "all reasonable steps" to prevent sexual harassment in the workplace, including harassment by third parties. An amendment at the Committee stage proposes extending this duty to health and safety risk assessments, requiring employers to assess the risk of harassment and consider gender-specific implications in their risk management processes.

Statutory Sick Pay reforms: The three-day waiting period before Statutory Sick Pay (SSP) becomes payable is removed. SSP will be payable from the first day of sickness absence. The lower earnings limit for SSP eligibility is also removed, extending entitlement to lower-paid workers. These changes amend the Social Security Contributions and Benefits Act 1992.

Extended tribunal time limits: The time limit for bringing most employment tribunal claims is extended from three months to six months, giving employees a longer window to bring claims if they believe their rights have been breached.

Which Policies Need Updating Before the Bill Comes into Force?

The breadth of the Employment Rights Bill means that virtually every HR policy suite will require review and, in most cases, substantive updating. The following policies are directly affected:

• Disciplinary and capability policy: Must be updated to reflect day-one unfair dismissal protection. Any reference to a two-year qualifying period must be removed, and fair procedures must apply from day one of employment.
• Probationary period policy: Must be revised to align with the new statutory probationary period framework. The policy must set out a fair process for assessing suitability during probation and make clear that dismissal during probation still requires a fair reason and fair procedure.
• Flexible working policy: Must be updated to reflect the strengthened requirements, including the duty to explain what alternative arrangements have been considered before refusing a request.
• Zero-hours and variable-hours contract policy: A new policy will be required for most employers who use these arrangements, setting out how guaranteed-hours offers will be calculated, communicated and administered.
• Trade union recognition and employee relations policy: Must be updated to reflect new rights of access, information and consultation requirements.
• Change management and restructuring policy: Must be updated to remove any reliance on fire-and-rehire practices and to document the limited circumstances in which contract variations may be imposed.
• Anti-harassment and dignity at work policy: Must be strengthened to reflect the enhanced duty to take "all reasonable steps" to prevent harassment, including harassment by third parties such as customers, clients and contractors.
• Sickness absence and sick pay policy: Must be updated to reflect the removal of the three-day waiting period for SSP and the removal of the lower earnings limit.
• Contracts of employment: Written statements of employment particulars must be reviewed to ensure they comply with the updated requirements of the Employment Rights Act 1996 and reflect the new statutory framework.

Timeline: When Different Provisions Take Effect

The Employment Rights Bill does not implement all changes simultaneously. Different provisions will come into force at different times, creating a phased implementation timeline that employers must manage carefully.

At Royal Assent (expected 2025):

• Removal of the three-day SSP waiting period
• Strengthened duty on flexible working refusals to be "reasonable"
• Extended employment tribunal time limits (three months to six months)
• Automatic unfairness of fire-and-rehire dismissals
• Enhanced duty to prevent sexual harassment ("all reasonable steps")

Following further consultation and secondary legislation (expected 2026):

• Day-one unfair dismissal protection (with statutory probationary period)
• Zero-hours contract guaranteed-hours rights
• New trade union access and recognition provisions
• Health and safety risk assessment requirements relating to harassment prevention
• Removal of the SSP lower earnings limit

Employers should note that the exact commencement dates for many provisions will be set by statutory instrument and may change. Monitoring official government announcements and parliamentary activity is essential.

Checklist: Policies to Review Now vs Policies to Update When Provisions Commence

Review and update now (provisions expected at Royal Assent):

• Sickness absence and sick pay policy — remove references to the three-day waiting period
• Flexible working policy — ensure refusal grounds are documented and demonstrably reasonable
• Change management policy — remove any reference to fire-and-rehire as a permissible approach
• Anti-harassment policy — review whether "all reasonable steps" have been taken and documented
• Employment tribunal awareness — update manager guidance to reflect the extended six-month claim window

Begin planning now, update when regulations are finalised:

• Disciplinary and capability policy — prepare for day-one unfair dismissal protection
• Probationary period policy — draft a new or revised policy aligned with the statutory probation framework
• Zero-hours contract policy — develop a process for calculating and offering guaranteed hours
• Trade union recognition policy — review current provisions and prepare for enhanced access rights
• Health and safety risk assessments — prepare to incorporate harassment risk assessment requirements
• Contracts of employment — prepare template updates for new starters

What Happens If Businesses Do Not Update Their Policies?

The consequences of failing to update policies in line with the Employment Rights Bill are significant and span multiple risk areas:

Increased tribunal exposure: With day-one unfair dismissal protection, the pool of employees who can bring claims expands dramatically. Employers who continue to rely on outdated disciplinary procedures — or who assume that short-serving employees can be dismissed without process — face a substantially higher risk of unfair dismissal claims. The ACAS Code of Practice on Disciplinary and Grievance Procedures will continue to apply, and tribunals can increase compensation by up to 25% where the employer has unreasonably failed to follow the Code.

Regulatory enforcement: The Bill introduces new enforcement mechanisms, including the establishment of a Fair Work Agency with powers to enforce certain employment rights directly. Employers who fail to comply with new obligations — particularly around zero-hours contracts and SSP — may face enforcement action beyond individual tribunal claims.

Contractual risk: Contracts of employment that do not reflect the new statutory framework may be challenged as non-compliant with the Employment Rights Act 1996 requirement for written statements of employment particulars. This creates a separate head of claim at tribunal, with a potential award of two to four weeks' pay.

Reputational risk: Employers who are seen to lag behind on compliance with worker-friendly legislation risk reputational damage in a competitive labour market. Prospective employees, particularly in sectors with skills shortages, increasingly expect employers to offer terms that meet or exceed statutory minimums.

The National Minimum Wage Act 1998 enforcement regime provides a useful parallel: employers who fail to comply with minimum wage obligations face not only financial penalties but also public naming and shaming. A similar enforcement culture is anticipated for the new employment rights provisions.

How Policy Pros Can Audit and Update Your Policy Suite

Preparing for the Employment Rights Bill requires a systematic approach. At Policy Pros, we offer a structured audit and update service designed specifically for this purpose:

1. Policy audit: We review your existing policies, contracts, HR documentation and employee handbooks to identify every area affected by the Bill's provisions.
2. Gap analysis: We produce a detailed report setting out which policies need updating, which new policies need creating, and the priority order for implementation based on the phased commencement timeline.
3. Drafting and revision: We draft new policies and revise existing ones, ensuring they reflect the new statutory requirements while remaining practical, clear and aligned with your organisation's culture and operations.
4. Implementation support: We provide guidance on communicating changes to staff, updating contracts, and training managers on the practical implications of the new legislation.
5. Ongoing monitoring: As secondary legislation and statutory instruments are published, we notify clients of any changes that affect their documentation and provide updates as needed.

For more information about our policy and procedure writing services, or to discuss how the Employment Rights Bill affects your organisation, contact us today. You may also find our guide to policies every company should have useful as a starting point for assessing your current documentation.

The Employment Rights Bill 2025 represents a generational shift in UK employment law. By acting now, businesses can avoid potential pitfalls, demonstrate a commitment to fair employment practices, and ensure a smooth transition as each provision comes into force.