Employment legislation Changes in Autumn 2025
28 reforms to enhance workers' rights and protections
Mass changes to employment legislation are on the way to the UK, with the government set to announce the Employment Rights Bill (ERB).
The bill will replace legislation in Autumn 2025, and the reforms will be rolled out gradually from April 2026 through to 2027.
The ERB brings 28 reforms to enhance workers' rights and protections. They include the guarantee against unfair dismissal from day one of employment rather than two years, and the banning of zero-hours contracts in favour of guaranteed hours. It will also bring stricter rules around sick pay, family leave, and standard working hours, tighten controls over the use of "fire and rehire," enhance the rights of agency workers, and establish a new enforcement body named the Fair Work Agency.
Companies, particularly small and medium companies, are concerned with these new reforms. Employers will face greater legal and administrative burdens, potential cost increases due to increased employee benefits and system enhancements, and additional pressure to retrain managers, renegotiate agreements, and teach individuals about the changes. There is also a greater risk of lawsuits if the new rules are not managed effectively. Experts are predicting that not preparing may result in costly legal expenses.
Even though the full rollout is a year or two away, companies are being compelled to act now. Preparation would include reviewing contracts and HR policies, modifying payroll and IT infrastructure, training management on fresh protocols, making future changes known to employees, budgeting for legal and compliance resources, and preparing for a projected influx of employee data requests.
While the changes may seem daunting, they have possibilities. The reforms can enhance employee morale and loyalty, open up the workplace and make it more equitable, improve a firm's public image, and eliminate discriminatory competitive advantages held by non-compliant employers. If tackled positively, the changes could not only be a compliance exercise but also a chance to re-design operations and create a stronger future for the business.
Since writing these key details have shifted:
Unfair dismissal protections will begin at six months, not day one.
The guaranteed hours clause now requires employees to opt in/request.
Implementation timing is likely to be phased and slower than initially suggested.
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