The government’s Employment Rights Bill is on track to become law before Christmas, marking what ministers have described as the biggest upgrade to workers’ rights in a generation.
After months of political debate, the legislation completed its final stage in Parliament this week when Conservative peer Andrew Sharpe withdrew his final amendment in the House of Lords. With parliamentary approval secured, the bill is expected to receive Royal Assent imminently.
Prime Minister Keir Starmer welcomed the development, calling it a “major victory for working people in every part of the country” and signalling a significant shift in how employment rights are protected in modern workplaces.
Why the Bill matters
Ministers have argued that employment law has failed to keep pace with changes in how people work, particularly the growth of insecure and precarious employment. The bill aims to reset the balance by strengthening protections from the very start of employment and improving fairness, dignity and security at work.
While many of the headline reforms are now agreed upon, it is essential to note that much of the detail will be implemented through secondary legislation. This means some changes will be phased in over time rather than taking effect immediately.
Key reforms at a glance
The Employment Rights Bill introduces a wide-ranging package of measures, including:
- Day-one employment rights, such as access to statutory sick pay and paternity leave
- Stronger protections for pregnant workers and new parents
- A ban on what the government describes as “exploitative” zero-hours contracts
- Expanded parental and bereavement leave
- Enhanced protections for whistleblowers
- Stronger duties on employers to prevent sexual harassment
The bill also includes reforms to trade union rights, improving union access to workplaces and updating the rules around union recognition.
One of the most controversial proposals, allowing employees to claim unfair dismissal from their first day of work, was removed earlier this year. Instead, the government has introduced a six-month probationary period, after which unfair dismissal rights will apply. This change is expected to take effect in January 2027 and will apply retrospectively to anyone who has already completed six months of service by that date.
Trade unions welcome the changes
Trade unions have broadly welcomed the bill’s passage. Paul Nowak, General Secretary of the Trades Union Congress (TUC), described it as a “historic day and an early Christmas present for working people”.
He said the reforms would help deliver “more security, better pay and dignity at work”, while urging the government to ensure workers feel the benefits as quickly as possible.
Employers urge caution on implementation
Employer and HR bodies have acknowledged the significance of the reforms, while also highlighting the challenges ahead.
Peter Cheese, Chief Executive of the CIPD, said the bill represents a “significant shift in employment rights and the rights of trade unions”, noting that its progress relied on consultation and pragmatic compromise. He stressed that the same approach will be essential as secondary legislation is developed, adding that the bill provides employers with greater clarity and time to prepare.
However, the CIPD and others have raised ongoing concerns, including:
- Compensation limits for unfair dismissal
- Tribunal capacity and enforcement
- Reference periods for zero-hours contracts
- Changes to collective consultation rules
Simon Fowler, Chief Executive of Empowering People Group, warned that HR and management practices will need to adapt quickly. He emphasised the importance of training line managers to handle new day-one rights and complex employee relations issues consistently, to avoid legal and cultural risks.
Neil Carberry, Chief Executive of the Recruitment & Employment Confederation, described the bill as an “important milestone” but cautioned that poor implementation could affect job creation and economic growth. He called on the government to use 2026 to work closely with employers to get the details right.
What happens next?
With Royal Assent expected shortly, attention now turns to implementation. For workers, the bill signals a clear shift towards greater security and protection. For employers, it highlights the need for early planning, workforce engagement and investment in management capability.
As secondary legislation emerges, organisations will need to review policies, contracts and people management practices carefully to ensure compliance and fairness.
Done well, the reforms have the potential not only to strengthen rights, but also to improve workplace culture, trust and inclusion across the UK labour market.