Employment Rights Bill update – October 2025

Elysia Shirley | 09.10.2025

The Employment Rights Bill (‘ERB’) reached the Report Stage at the House of Lords on the 14th July 2025. Here, the Lords passed a number of non-government-backed amendments including:

  1. Reducing the qualifying period for a claim of Unfair Dismissal from two years to six-months. The government’s original manifesto stated that this would be a ‘day-one’ right;
  2. Changing the previously proposed duty on employers to offer a guaranteed hours contract to appropriate workers, to making it a right for workers to request a guaranteed hours contract instead; 
  3. Defining ‘short notice’ in relation to compensation when a shift is cancelled to be deemed as 48 hours;
  4. A new section which permits employees to be accompanied at disciplinary and grievance hearings by a “certified professional companion”;
  5. A new section which requires the government to make regulations which extend protection against unfair dismissal for whistleblowing claims, as well as requiring employers to investigate protected disclosures; and
  6. Retaining the 50% turnout threshold required in industrial action ballots. 

The Employment Rights Bill passed its Third Reading at the House of Lords on the 3rd September 2025. Consideration of these amendments took place on the 15th September 2025, where the majority of the above non-government-backed amendments were rejected. Reasons were provided for the rejections by the House of Commons Committee to enable the House of Lords’ consideration of the amendments.

  1. The six-month qualifying period for unfair dismissal claims was rejected. The reason outlined how protection from unfair dismissal is appropriate when applied from the start of employment; 
  2. The change from requiring employers to offer a guaranteed hours contract to giving workers the right to request one was rejected. This was because it was deemed as appropriate for workers who suffice the relevant criteria to receive a guaranteed hours contract;
  3. The 48 hours ‘short notice’ definition in consideration of compensation for shifts cancelled at short notice was rejected. This was due to the assumption that this definition would otherwise pre-anticipate consultation and therefore limit the government’s discretion;
  4. The allowance for employees to be accompanied by a ‘certified professional companion’ to disciplinary and grievance hearings was rejected. This was due to the consequential increase in cost, length and complexity of the hearings; 
  5. The requirement for the government to extend protection of unfair dismissal to whistleblowing claims was rejected. The reason given for this was simply that it was otherwise considered inappropriate; and
  6. The retention of the 50% turnout threshold for industrial actions ballots was rejected. This was because it was deemed suitable to eliminate the section which suggests that industrial action is considered to have support of the ballot only if at least 50% of eligible voters in the ballot voted. 

The House of Lords are due to meet on the 28th October 2025 to agree or disagree to the above amendments. It is expected that the Bill will be approved on this date. The Employment Rights Bill will move to the Royal Assent stage, where the King will formally agree to make the Employment Rights Bill an Act of Parliament. This is projected to take place in early November. 

Below is a non-exhaustive list of the changes that are due to take place, or predicted to happen, in the coming months and years. The changes are subject to governmental consultations and can be modified or removed.

Fin dout more on teh Employments Rights Bill here – House of Lords

By and within October 2025

By the 28th October, Employers will have a new duty imposed on them to take ‘all reasonable steps’ to prevent sexual harassment of their employees. This will be as opposed to the previous lower threshold of ‘reasonable steps’. Once the Bill becomes an Act of Parliament, the ‘minimum service levels’ for striking rules will be removed. Within two months of the Bill becoming law, the previous 12-week limitation to claim unfair dismissal following involvement with industrial action will be removed; this will become automatically unfair. 

Numerous changes will be made in association with Trade Unions including, but not limited to:-

  1. Unions will require a simple majority to vote for industrial action; removing the previous turnout threshold;
  2. The requirement of picket supervisors will be removed;
  3. Time-limited mandates for industrial action following a ballot will remain in place, but its length will be extended to 12 months from the previous 6 months;
  4. The rules around industrial action and ballot notices will be made simpler; and 
  5. The previous requirement for 14 days’ notice to be given for industrial action will be reduced to 10 days.

By and within April 2026

By the end of April 2026, Parental Leave and Paternity Leave are anticipated to become a ‘day-one right’, instead of the current required periods of 52 weeks and 26 weeks, respectively. It is expected that the current restriction on taking Paternity Leave after taking shared Parental Leave will be removed. The current rule that permits Statutory Sick Pay (‘SSP’) to be paid from the fourth day of illness is due to be brought forward to the first day of illness. Workers must currently earn a minimum amount to be eligible to receive SSP, also known as the lower earnings limit; this is also likely to be removed.

The current maximum Protective Award for failure to consult correctly in collective redundancy procedures is at 90 days’ pay. This is expected to double to 180 days’ pay. Qualifying disclosures for the purpose of whistleblowing protections does not currently include sexual harassment. This is expected to change to allow protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.

The voluntary creation of action plans around gender pay gaps and menopause are anticipated from April 2026, with this likely to become mandatory at some point in 2027. 

Further Trade Union changes are expected, including:

  1. Additional simplification as to how a Trade Union can gain recognition in a workplace; and
  2. Allowing Trade Union members to vote electronically.

In April 2026, the Fair Work Agency is expected to be established. The purpose of this agency is to bring together enforcement bodies and to take on the enforcement of other employment rights, such as holiday pay or SSP. The aim of this is to help reduce the stress and pressure on Employment Tribunals. 

From October 2026 onwards

There is expected to be a new duty on employers to prevent harassment from third parties such as customers or clients. There are also anticipated changes surrounding the ‘fire and rehire’ rules, namely that the dismissal and subsequent rehiring of a worker on worse terms conditions is expected to become automatically unfair. Workers who take part in industrial action are also expected to be protected from detriment as this is projected to be considered as unfair as well. 

Employers will have further duties regarding their tipping polices. This includes the requirement to consult with their workers or their workers’ representatives before creating a tipping policy, as well as the requirement to update their tipping policy every three years. 

The current limitation period to bring a claim to an Employment Tribunal is 3 months. This is expected to increase by double to become a 6-month limitation period.

Trade Union changes continue into the end of 2026:-

  1. There is expected to be a new duty on employers to inform workers of their right to join a trade union;
  2. A new right for time off for union equality representatives is anticipated to enable them to carry out their duties;
  3. A new right to reasonable accommodation and facilities for trade union representatives when carrying out their duties is expected; and
  4. There is scheduled to be an update on the rules on a trade union’s right of access to the workplace. 

Finally, a new mandatory charter is expected for seafarers. This is expected to have higher standards around health and safety, as well as rest breaks, job security and pay. 

By and within 2027

Currently, someone must have worked for their employer for a qualifying period of two years before they can claim unfair dismissal. It’s expected that protection from unfair dismissal will become a ‘day-one’ right; existing  from the first day of their employment. Protections against the dismissal of pregnant workers and those who are returning from maternity leave are projected to be strengthened. A new right to statutory bereavement leave is also anticipated, though it is unclear whether this is due to be a paid or unpaid leave.  Workers are expected to have a right to be paid where a shift is cancelled, cut short or moved to another date by an employer. Workers who are on zero-hour contracts can also anticipate a right to guaranteed working hours where desired. Additionally, an employer may instead need to consider the total number of anticipated redundancies across their whole organisation, as opposed to the current ‘one establishment’ rule when reviewing the need for collective consultations. The definition of agencies is also expected to include ‘umbrella companies’.

An employer will not be able to refuse a flexible working request unless they state their reasons and explain why they believe their refusal is reasonable.

The above earlier expected change requiring employers to take all reasonable steps to prevent sexual harassment will be defined and specified by this time.

Also, the earlier expected change regarding action plans for menopause and gender pay gap reporting is anticipated to become mandatory at this time. 

Additional Trade Union changes are due to continue:-

  1. A new industrial relations framework is expected to update the legal framework which underpins trade unions; and
  2. Laws will be extended to protect Trade Union members from discrimination at work and being ‘blacklisted’.

Employers must ensure they are up to date with the changes that arrive from the Employment Rights Bill, and take appropriate steps to comply with the changes as they arrive. 

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