On 16 July 2025, the Employment Rights Bill (ERB) had its second sitting of the Report Stage at the House of Lords. The below sets out the government’s new phased delivery plan for the ERB, with a timeline of proposed reforms from 2025 to 2027.
From April 2026, all workers will gain day-one rights to Paternity Leave and Unpaid Parental Leave, ending the requirement for a minimum period of service. Statutory Sick Pay will become universal, with the lower earnings threshold and three-day waiting period removed. The government will also establish a new Fair Work Agency to monitor and enforce employees’ rights. Trade union recognition processes will be simplified, with electronic and workplace ballots permitted. Whistleblowing protections will be expanded to explicitly cover sexual harassment. The maximum period of the protective award will be doubled for collective redundancies.
From October 2026, new duties will require employers to take “all reasonable steps” to prevent sexual harassment of their employees, including an obligation on employers not to permit the harassment of their employees by third parties. Employers will need to consult staff on the distribution of tips under updated tipping laws, and most time limits to bring a claim in the Employment Tribunal will be extended from three to six months. Fire-and-rehire practices will be banned and a package of trade union measures will be put in place, including new rights and protections for trade union representatives, extending protections against detriments for taking industrial action and strengthening trade unions’ right of access.
From December 2026, the mandatory seafarers’ charter is expected to come into force, setting employment standards for operators of services calling frequently at UK ports.
During the course of 2027, the most contentious change regarding the qualifying period for unfair dismissal will come into effect. Initial proposals for day one rights have been countered by the House of Lords which has backed an amendment that would reduce the qualifying period to six months. Other amendments will include:
- Employees will also gain a day-one right to Bereavement Leave.
- Regulations will be introduced regarding zero-hours contracts, including the right to guaranteed hours, reasonable notice of shifts and payment for shifts that are cancelled, curtailed, or moved at short notice.
- Protection against dismissal for pregnant employees will be strengthened.
- Large employers with over 250 staff will be required to publish gender pay gap and menopause action plans.
- Powers will be introduced to enable regulations to specify what amounts to a ‘reasonable step’ to determine whether an employer has taken all reasonable steps to prevent sexual harassment.
- Employers will be required to reasonably justify refusals to flexible working requests.
- Regulations will be put in place for umbrella companies, to ensure that people have comparable rights and protections to those working directly through an employment business.
- Blacklisting of workers that are used to discriminate based on trade union membership will be made illegal.
Further amendments agreed by the Lords are:
- Whistleblowing – the government will be required to make regulations within six months of the ERB being passed, that extend the circumstances in which an employee is considered unfairly dismissed after making a protected disclosure. In addition, the regulations will require employers to take “reasonable steps” to investigate any protected disclosure made to them.
- Disciplinary and grievance hearings – employees will be allowed to be accompanied by a “certified professional companion”.
- Definition of “seasonal work” – a definition will be included in the ERB.
- Consultation – the government will be required to consult with at least 500 SMEs on the effect of Part 1 of the ERB and to publish the outcome of this consultation.
The House of Lords Report Stage is scheduled to continue this week.
Employers should ensure they are keeping themselves updated regarding the Bill’s progress and preparing for the necessary steps they need to make regarding the above landmark changes.
