The Employment Rights Bill: Key Changes and Implementation Timeline

At a Glance

It is expected that the Employment Rights Bill will introduce the following key changes to UK employment law:

• Employees will have a day-one right to bring ordinary unfair dismissal claims and will no longer need a qualifying period to be eligible for statutory paternity leave and statutory parental leave.
• Confidentiality clauses that restrict disclosure about harassment and discrimination will be unenforceable. Employers will be under a duty to take all reasonable steps to prevent harassment and may be liable for harassment by third parties. 
• Workers who report actual or likely sexual harassment will be protected under whistleblowing legislation. 
• New limits will curb the use of dismissal and re-engagement to push through changes to terms and conditions. Dismissals will be automatically unfair if the reason for the dismissal is the employee’s refusal to agree to certain “restricted variations”, unless the employer can meet a high justification test.
• Although many measures will take effect in stages between 2026 and 2027, businesses should be tracking developments now and preparing for the changes ahead. As a first step, reviewing employment contracts, workplace policies and practices will be essential to ensure compliance when the new measures take effect. 

The Employment Rights Bill, first introduced in October 2024, represents the most significant overhaul of UK employment law in a generation. It is expected that the Bill will receive Royal Assent and become law in autumn 2025. 

In this update¹, we outline the main changes that are expected to come out of the Bill and expected timelines for implementation. 

Unfair Dismissal: Day-One Protection 

Current Position: Employees need two years’ continuous service to qualify for protection from ordinary unfair dismissal.

What’s Changing: It is expected that employees will be able to bring ordinary unfair dismissal claims from day one of employment. It is also expected that an “initial period” (likely nine months) will apply, during which a less onerous termination process and lower compensation limit will be in place. 

Expected Timing: 2027

Non-disclosure Agreements (NDAs): Ban in Harassment and Discrimination Cases

Current position: There are limited restrictions on NDAs that prevent disclosure of harassment or discrimination.

What’s Changing: It is expected that any agreement preventing a worker from making allegations or disclosures about harassment or discrimination will be void and unenforceable (although exceptions may be defined by future regulations).

Expected Timing: Date to be confirmed.

Fire and Rehire: New Limitations 

Current Position: Employers may dismiss and re-engage employees on revised, and potentially less favourable, terms. Although not without risk, this typically occurs where the employer has not been able to obtain its employees’ consent to the revised terms. The Statutory Code of Practice on Dismissal and Re-engagement, introduced in July 2024, sets out expected procedures and consequences of noncompliance.

What’s Changing: It is expected that a dismissal for a refusal to accept a “restricted variation” (including changes to pay, pension, time off or working hours) will be automatically unfair, unless the employer can demonstrate both that it was in financial difficulty threatening business survival and that the need for the changes could not reasonably be avoided. This is a very high bar.

Expected Timing: October 2026

Collective Redundancy: Broader Thresholds and Higher Awards

Current Position: Consultation is triggered when an employer is proposing to dismiss 20 or more employees at a single establishment within a 90-day period. The current maximum protective award is 90 days’ gross pay per employee.

What’s Changing: It is expected that a new threshold for collective redundancy consultation will be introduced, in addition to the current threshold. The details of this new threshold are still unknown, but it will likely be based on the total number of proposed redundancies across all establishments. It is also expected that the maximum protective award for noncompliance will be increased to 180 days’ gross pay.

Expected Timing:

• Maximum protective award increase: April 2026
• Threshold reform: 2027

Sexual Harassment — Extended Employer Duty

Current Position: Since October 2024, employers have been required to take reasonable steps to prevent sexual harassment in the workplace.

What’s Changing: It is expected that this duty will be extended, requiring employers to take all reasonable steps to prevent harassment. Additional regulations are expected to provide clarity on what constitutes “all reasonable steps”.

Expected Timing:

• Extended duty: October 2026
• Supporting regulations: 2027

Sexual Harassment — Whistleblowing Protection Extended

Current Position: Workers are protected under whistleblowing laws when reporting specific issues, such as legal breaches, health and safety risks, and criminal offences.

What’s Changing: It is expected that sexual harassment will be added to the list of protected disclosures. Workers who report actual or likely sexual harassment will be expressly protected under whistleblowing legislation.

Expected Timing: April 2026

Liability for Third-Party Harassment: New Employer Liability

Current Position: Employers are not liable for harassment of employees by third parties (e.g., clients, customers).

What’s Changing: It is expected that employers will become liable for harassment of employees by third parties, unless they can demonstrate that all reasonable steps were taken to prevent such harassment. This will apply across all protected characteristics, including sex.

Expected Timing: October 2026

Flexible Working: Increased Scrutiny of Refusals

Current Position: Employees can request flexible working from day one. Employers must respond within a set timeframe and may only refuse for one of eight statutory reasons.

What’s Changing: It is expected that employers will be required to ensure that any refusal is objectively reasonable, in addition to meeting the requirements of a prescribed statutory reason.

Expected Timing: 2027

Tribunal Time Limits: Extended Period for All Claims

Current Position: Employees have three months to bring most statutory employment claims (including claims of unfair dismissal and discrimination) in the Employment Tribunal.

What’s Changing: It is expected that the time limit will be extended to six months for all statutory employment claims, aligning with the current position for certain exceptions (e.g. equal pay).

Expected Timing: October 2026

Family Leave: Expanded Bereavement, Paternity and Parental Leave Rights

Bereavement Leave

Current Position: Employees who lose a child under the age of 18 and after 24 weeks of pregnancy are entitled to up to two weeks of parental bereavement leave.

What’s Changing: It is expected that eligibility for parental bereavement leave will be extended to include pregnancy loss before 24 weeks. The scope of bereavement leave may also be extended beyond parental bereavement leave.

Expected Timing: 2027

Paternity and Parental Leave

Current Position: Statutory paternity leave requires 26 weeks of service, and statutory parental leave requires one year of service.

What’s Changing: It is expected that both statutory paternity leave and statutory parental leave will become day-one rights.

Expected Timing: April 2026

Statutory Sick Pay (SSP): Broader Access

Current Position: SSP is not payable for the first three days of sickness absence. 

What’s Changing: It is expected that SSP will be payable from the first day of sickness absence. 

Expected Timing: April 2026

Equality and Menopause Action Plans

Equality Action Plans

Current Position: There is no legal requirement for employers to publish equality action plans, although employers with more than 250 employees must report gender pay gaps.

What’s Changing: It is expected that employers with more than 250 employees will be required to publish equality action plans, including gender pay gap action plans, to promote gender equality in the workplace.

Expected Timing: 

• Voluntary: April 2026
• Mandatory: 2027

Menopause Action Plans

Current Position: There is no statutory requirement to publish menopause support plans.

What’s Changing: It is expected that employers with over 250 employees will be required to publish menopause action plans to support employees experiencing menopause. 

Expected Timing:

• Voluntary: April 2026
• Mandatory: 2027

Trade Unions — Duty on Employers and Right of Access 

Current Position: There is no duty on employers to inform workers of their right to join a trade union, and no general right for trade unions to access workplaces.

What’s Changing: It is expected that employers will have a duty to inform workers of their right to join a trade union, and that trade unions will have the right to request access to a workplace for certain purposes, including to meet, represent, recruit or organise workers (whether or not they are members of the union). It is also expected that statutory trade union recognition will be simplified.

Expected Timing: April 2026

Looking Ahead

The Employment Rights Bill introduces sweeping changes to the UK employment landscape, with new protections for workers and additional responsibilities for employers. Although many measures will take effect in stages between 2026 and 2027, businesses should be tracking developments now and preparing for the changes ahead. As a first step, reviewing employment contracts, workplace policies and practices will be essential to ensure compliance when the new measures take effect.