UK Employment Rights Bill 2025: Landmark Reforms for Workers

Major changes are coming to the UK labour market in 2025 with the Employment Rights Bill 2025. This is the biggest reform of employment law in the past 50 years and will have a significant impact on everybody working in the UK. The law aims to end “one-sided flexibility” and create more predictable, secure working conditions for everyone. While the most significant changes will take effect in 2026-27, it’s worth preparing for them now.

One of the most important changes is the removal of the two-year waiting period for unfair dismissal protection. Starting in 2027, you will have legal protection from day one, which is a huge step forward for the workers who often work on shorter-term contracts. This means that if you experience problems at work, you can take legal action immediately without having to wait two years for this protection to kick in.

The Statutory Sick Pay (SSP) system is also being significantly reformed from April 2026. The three-day waiting period and the minimum income threshold will be removed, meaning you will receive pay from the first day you are sick. This is particularly important for part-time and low-paid workers, who were typically excluded from support under the old system.

Zero-hours contracts will also be subject to stricter regulations. If you regularly work a certain number of hours (typically for 12 weeks), you will have the right to a guaranteed number of hours. Additionally, employers will have to pay compensation if they cancel or change your shifts at short notice. This will create greater income security and help with future planning.

Pregnant employees will receive stronger protection against discrimination and redundancy. The protection will start from the moment a pregnancy is announced and last for 18 months after birth. Employers will be obligated to offer alternative positions during redundancy, even if another employee is better suited for the role. The “fire and rehire” practice will also be restricted, preventing employers from firing and rehiring workers on worse terms. These changes collectively improve the situation for workers, guaranteeing greater security and predictability in the UK.

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Source: AWOC

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