Employment Rights Bill 2025: What Employers Need to Know Now (November 2025)
Written by Ian Grimshaw | Employment team | 28 November 2025
The Employment Rights Bill is making its way through Parliament and is now in the stage where the House of Lords and the House of Commons exchange amendments. Although this process resembles a polite dispute held over very long lunches, the direction of travel is now much clearer. For employers, particularly SMEs, the Bill represents the biggest shift in workplace law since the 1990s.
This article brings together the most up to date information from the latest round of parliamentary amendments. It explains what is expected to change, what remains uncertain and what employers should be doing to prepare.
Why this Bill matters for employers
The purpose of the Bill is to move workplace protections towards greater security, transparency and fairness for workers while tightening expectations on employers. Many changes will require a review of HR systems, employment contracts, performance management, industrial relations and how organisations manage litigation risk.
For SMEs, the impact will be practical and financial. The Bill will increase compliance demands and may increase the number of tribunal claims. It also requires employers to take a more structured approach to probation, dismissal processes and working pattern stability.
Key reforms now expected under the Employment Rights Bill
All dates and measures below reflect the latest parliamentary updates as of November 2025.
Unfair dismissal: the future of day one rights
The Lords attempted again to insert a six-month qualifying period for unfair dismissal. The Commons rejected this for a second time. The government remains committed to its plan for day one unfair dismissal rights and will now consult on the detail. Employers should plan for the assumption that unfair dismissal rights will apply from the first day of employment.
This increases the importance of strong induction processes, documented probation reviews and clear performance expectations. Organisations that rely on informal or light touch probation management will need to upgrade their approach.
Guaranteed hours contracts and working pattern stability
The Lords proposed an amendment allowing workers to request, rather than be offered, guaranteed hours offers but this was rejected. The government position is that employers will face a strengthened duty to offer guaranteed hours where working patterns show regularity.
This means organisations that use flexible or fluctuating scheduling will need to review how much regularity exists in practice. Where rotas consistently mirror predictable patterns, employers may need to formalise hours to reduce the risk of non-compliance.
Seasonal work: no statutory definition yet
The Lords attempted to codify a definition of seasonal work to support employers that rely on fluctuating labour needs. The Commons disagreed, confirming that the Bill already provides for further regulations on this area. Consultation is expected next year.
Employers in hospitality, leisure, tourism, agriculture and retail should anticipate further clarity but for now seasonal definitions remain unchanged.
Trade union and industrial relations reforms
Trade union political funds: the Lords proposed a return to the 2016 opt in model for political funds. The Commons rejected this and kept the current opt out approach. A technical amendment will allow opt outs to take effect more quickly where union rules permit it.
Industrial action turnout threshold: the Lords attempted to keep the 50 percent turnout rule for industrial action ballots. The Commons rejected this noting that many democratic processes operate without turnout thresholds. The government must now consider the impact of electronic balloting ahead of planned reforms in April 2026. Electronic ballots may make strike action ballots faster and more frequent.
Tribunal reform and backlog concerns
The government has acknowledged concern about the tribunal backlog and has set up a taskforce to consider the issue. There are no deadlines yet, but the acknowledgement signals that delays will persist in the near term.
For employers this reinforces the need for excellent documentation, strong record keeping and early resolution of disputes wherever possible.
Fire and rehire and consultation obligations
Although detailed October analysis outlined the likely direction for reform, the November update confirms that dismissal and re-engagement (“fire and rehire”) practice remains under scrutiny. The Bill will significantly restrict the circumstances in which fire and re-hire can be used and will impose statutory consultation and justification duties. While the practice is not proposed to be prohibited outright, the combination of requirements is likely to make fire and re-hire unavailable in most routine or convenience-based scenarios.
Workplace rights and protections expected in 2026 and 2027
The detailed protections originally outlined in the October analysis continue to reflect the government’s intentions and remain in scope unless contradicted by November updates. These include:
Improved rights around family leave, paternity leave and parental leave
Sick pay becoming payable from day one and removal of the lower earnings threshold
Stronger protections for whistleblowers
Enhanced menopause and gender pay reporting duties for larger businesses
A more proactive enforcement body known as the Fair Work Agency
Strengthened protections during pregnancy and maternity#
Bereavement leave as a wider statutory right
A right to a guaranteed hours contract for zero hours staff
Requirements for employers to provide greater reasoning for rejecting flexible working requests
New umbrella company regulation through the enforcement framework
Employers should assume these will progress unless parliamentary updates state otherwise.
What SMEs should be doing now
The Bill will not be fully implemented until 2027 but the pace of change is increasing. SMEs should begin preparing across the following areas:
Review induction and probation documentation to mitigate exposure once day one unfair dismissal rights take effect
Audit working patterns and scheduling to identify where guaranteed hours obligations may arise
Strengthen industrial relations planning in light of potential changes to balloting and strike thresholds
Improve record keeping to protect against tribunal risk
Review family leave, sickness and flexible working policies to ensure compliance when new rights commence
Train managers on performance management, early intervention and lawful dismissal procedures
Being proactive will reduce future cost exposure and help employers adapt smoothly as the reforms roll out.
Our view
The Bill signals a significant cultural shift in UK employment law. Where employers once had wide discretion, the emphasis is moving towards stability, predictability and fairness for workers. For SMEs this means more structure, more documentation and more scrutiny of decision making.
We’re likely to be entering a period of extensive consultation on these changes (currently 26 are proposed), but what we can be certain of is that the employment landscape is not going to become more employer friendly.
The reforms will take time to arrive but, by 2027, the landscape of UK workplace rights will look very different.
Our Employment team advises businesses across Plymouth, Devon, Cornwall and the wider UK on all aspects of employment law and workplace strategy. If you would like tailored advice on preparing for the Employment Rights Bill, please get in touch through our contact form here.
