The Employment Rights Bill: A New Dawn for UK Workers

The UK's employment landscape is about to undergo a significant transformation.

The Employment Rights Bill (ERB), scheduled for full implementation by 2026, promises to redefine the relationship between employers and employees nationwide. This comprehensive legislation aims to strengthen worker protections while bringing workplace practices into the modern era.

What's Changing for UK Workers

For many UK workers, the most welcome change might be removing the two-year qualifying period for unfair dismissal claims.

This landmark shift will allow employees to challenge what they perceive as unjust termination from their first day of employment. While this protection won't take effect until autumn 2026, it signals a fundamental rebalancing of power in the workplace.

This represents the most substantial change to unfair dismissal rights in decades. Employers must ensure their dismissal procedures are watertight from day one of employment, not just after two years.

The notorious ‘fire and rehire’ practice has long been controversial in UK workplaces.

Under the ERB, employers will face much tighter restrictions when attempting to terminate employees only to offer them new contracts with less favourable terms.

This practice will be considered unfair unless businesses can prove they have no alternative. The law will also prevent companies from hiring someone new to perform substantially the same duties under different terms.

Stronger Protections Against Harassment

Workplace harassment remains a persistent problem across industries.

The ERB takes a firm stance on this issue by requiring employers to implement all reasonable measures to prevent sexual harassment. This duty extends to third-party harassment as well, meaning employers must protect their staff from inappropriate behaviour by customers, clients, and other non-employees.

The bill also strengthens protections for those who speak out, classifying disclosures about sexual harassment as ‘protected disclosures’.

This gives whistleblowers enhanced legal protection against retaliation when they report inappropriate workplace behaviour.

A New Deal for Precarious Workers

Zero-hour contracts have been criticised for creating uncertainty and financial instability for workers.

The ERB introduces important limits on these arrangements, requiring employers to offer guaranteed hours to workers who consistently exceed their contracted hours. Additionally, workers will be entitled to compensation when shifts are cancelled or cut short, providing a safety net against unpredictable income.

The changes to Statutory Sick Pay (SSP) will provide meaningful relief for those who fall ill. SSP will be payable from day one of illness, eliminating the current waiting period.

The law will also remove the lower earnings limit, ensuring all employees qualify for sick pay regardless of income level.

Workers earning below the current threshold will receive 80% of their average weekly earnings. This change acknowledges that lower-paid workers often face the greatest hardship when illness strikes.

Flexibility and Work-Life Balance

The modern workforce increasingly values flexibility. Under the ERB, employers will face stricter requirements when rejecting flexible working requests, needing to provide reasonable justification for any refusal.

The bill also introduces a mandatory consultation process before employers can deny such requests, encouraging meaningful dialogue about work arrangements.

This change complements the expansion of ‘day one’ employee rights, granting employees immediate access to statutory sick pay, unpaid parental leave, paternity leave, and paid bereavement leave from the start of their employment.

These provisions recognise the importance of work-life balance and the need for compassionate employment practices.

Updating Collective Representation

Trade unions play a crucial role in protecting worker interests, and the ERB aims to strengthen their position. The bill simplifies union recognition processes and enhances collective bargaining rights.

It also introduces protections for workers against detriments short of dismissal for participating in industrial action, safeguarding the right to organise.

These changes could increase union membership and activity across sectors where representation has traditionally been low.

What This Means for UK Workplaces

The ERB represents a significant shift towards greater job security and improved working conditions.

Employees will benefit from enhanced protections against unfair dismissal, exploitative practices, and inadequate sick pay. The bill also promotes greater flexibility and work-life balance, empowering workers to request arrangements that suit their needs without fear of unreasonable refusal.

For employers, however, the changes necessitate careful preparation. Companies will need to update their policies, invest in workforce planning, and ensure robust documentation to mitigate the risks associated with increased employment tribunal claims.

While some business groups have expressed concerns about added costs and administrative burdens, proponents argue that better worker protections ultimately lead to higher productivity and reduced turnover.

The Employment Rights Bill marks a pivotal moment in UK employment law, setting a new standard for worker protection and workplace fairness.

As we approach 2026, employees and employers would be wise to familiarise themselves with these changes to navigate the evolving landscape confidently.

Key Takeaways for Workers and Employers

• Enhanced Job Security: The elimination of the two-year qualifying period means workers will have protection against unfair dismissal from day one, fundamentally changing the power dynamic in employment relationships.
• Fairer Treatment for All: The restrictions on ‘fire and rehire’ practices protect employees from being forced to accept less favourable terms under the threat of losing their jobs entirely.
• Health and Wellbeing Support: Improved sick pay provisions, including day-one entitlement and removal of the lower earnings limit, ensure workers won't face financial hardship when illness strikes.
• Better Work-Life Balance: Strengthened rights to request flexible working arrangements and the introduction of a consultation process give employees more control over how and when they work.
• Greater Voice in the Workplace: Enhanced trade union rights and collective bargaining provisions help ensure workers' concerns are heard and addressed effectively.
• Proactive Compliance for Employers: To ensure compliance, businesses must review and update their employment policies, contracts, and handbooks well before the 2026 implementation date.
• Documentation and Training: Employers should implement robust record-keeping processes and train managers on the new requirements to mitigate risks associated with employment tribunal claims.
• Culture Change: Organisations that embrace the spirit of the reforms by fostering inclusive, supportive workplace cultures may gain competitive advantages in recruitment and retention.

By addressing long-standing concerns about job security, workplace harassment, and precarious work arrangements, the ERB aims to create a more equitable relationship between workers and employers. 

While the full impact of these changes remains to be seen, the UK employment landscape is clearly on the cusp of its most significant transformation in decades, promising greater protection and dignity for workers across all sectors.