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• August 29, 2025

Employment Rights Bill - Latest update - August 2025

Since our last update on the Employment Rights Bill, the report stage has now completed and the Bill is due to have its third reading in the House of Lords, marking the final opportunity for any amendments to the Bill. If any amendments are made to the Bill, it will return to the House of Commons for further consideration. The Bill could go back and forth between the Houses until agreement is reached between the two.

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Last month, we explained that the Government had published a roadmap for the implementation of changes the Bill will introduce. We covered the proposed changes over the next 12 months and continue this month with those changes proposed from October 2026 and into 2027. It’s important to remember the Bill isn’t yet law and will require Royal Assent before becoming an Act of Parliament.

October 2026

Changes in relation to Trade Unions make another appearance, along with a focus on topics that have already seen changes in the past 18 months, such as harassment, tips and fire and rehire.

Trade Unions:

  • Requirement to inform workers of their right to join a trade union
  • Strengthening of trade unions’ right of access
  • Introduction of new rights and protections for trade union representatives
  • Extension of the protections against detriments for taking industrial action.

Sexual harassment:

  • Requirement for employers to take “all reasonable steps” to prevent sexual harassment of their employees
  • The October 2024 changes were for employers to take “reasonable steps”
  • Obligation for employers to not permit the harassment of their employees by third parties, extending protections to all work environments, including public-facing roles.

Tribunals:

  • Extension of time limits in which an employee can make a claim to an employment tribunal from three months to six months.

Fire and Re-hire:

  • Restrictions on the use of ‘fire and re-hire’ unless in limited circumstances.

Tips:

  • Tightening of tip laws by mandating consultation with workers to ensure fair tip allocation.

Adult Social Care:

  • Introduction of regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body.


2027


2027 is set to have a mixture of changes implemented, many surrounding the wellbeing of employees.

Unfair dismissal:

  • Removal of the two-year service requirement for ordinary unfair dismissal claims and the introduction of a statutory probation period
  • The House of Lords voted for an amendment to this, reducing the qualifying period for unfair dismissal from two years to six months.

Flexible working:

  • Requirement for employers to explain why it was reasonable to refuse a flexible working request.

Sexual harassment:

  • Introduction of regulations to specify steps that are deemed as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
  • The aim is to provide clearer guidance (and stronger enforcement).

Agency, low and zero-hour workers:

  • Requirement to offer zero-hour, low hour and agency workers a guaranteed hours contract reflecting their usual working hours
  • The House of Lords voted for an amendment to this, removing the mandatory requirement for an employer to offer guaranteed hours and insert provision that would allow employees to request this agreement
  • Requirement to provide notice or compensation for changes to shifts for these workers
  • The House of Lords voted for an amendment that would exempt employers from paying an employee for a shift if it is cancelled with 48 hours’ notice.

Bereavement:

  • Introduction of unpaid bereavement leave
  • Extension of parental bereavement leave criteria to cover miscarriages before the 24th week of pregnancy.

Redundancy:

  • Introduction of new collective consultation thresholds in collective redundancy situations.

Pregnancy:

  • Extension of the rights and protections for pregnant workers and new mothers.

Trade Unions:

  • Introduction of an industrial relations framework and blacklisting provisions.

Mandatory action plans:

  • Gender pay gap
  • Menopause

Umbrella companies:

Tighter regulation of umbrella companies, by redefining them as “employment businesses” under the Employment Agencies Act 1973

This concludes our update on the Government’s roadmap for the implementation of changes. As mentioned, the House of Lords have proposed a number of amendments to the Bill, some of which we have touched upon and others we will discuss next month, hopefully with updates from the third reading scheduled for 3rd September.

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