Definition
Major UK legislation introduced in October 2024 proposing significant reforms to employment law, including making unfair dismissal a day-one right, restricting zero-hours contracts, strengthening trade union rights, and establishing a new Fair Work Agency.
UK Context
The Employment Rights Bill is the largest piece of employment legislation since the Employment Rights Act 1996. It delivers on Labour Government manifesto commitments. The Bill is progressing through Parliament with most provisions subject to further consultation. Implementation will be phased, with major changes expected from autumn 2026 onwards.
Best Practices
- Monitor the Bill's progress through Parliament and stay informed about amendments and timelines
- Assess the potential impact on your organisation, particularly regarding zero-hours contracts and dismissal procedures
- Review current employment contracts and policies to identify areas that may need updating
- Begin planning for changes to recruitment, probation, and performance management processes
- Engage with industry bodies and legal advisors to understand sector-specific implications
Frequently Asked Questions
When will the Employment Rights Bill become law?
The Bill is progressing through Parliament in 2025. Most provisions require further consultation and secondary legislation, so implementation will be phased. The unfair dismissal day-one right is expected no earlier than autumn 2026.
Will unfair dismissal become a day-one right?
The Bill proposes removing the two-year qualifying period. However, a new statutory probation period will allow employers to dismiss more easily during an initial period, subject to a simplified fair process.
How will zero-hours contracts change?
The Bill does not ban zero-hours contracts outright but requires employers to offer guaranteed hours based on hours regularly worked over a reference period. Workers will also gain the right to reasonable notice of shifts.