Employment Rights Bill – update

The Employment Rights Bill is expected to become law in November 2025. This means important changes to employment law with a huge number relating to trade union rights. It is important to note all of these proposed changes reduce the rights of employers and without exception all of those to do with trade unions will significantly enhance the rights of trade unions.

A few changes are expected to happen in 2025. Most changes will happen in 2026 and 2027.

Employers should start considering the impact of these changes on their business, particularly the autumn/winter 2025 and April 2026 changes.

Within 2 months

Removing minimum service level rules for strikes

It is expected that rules around ‘minimum service levels’ for strikes will be removed. This change is expected as soon as the Bill becomes law.

Increased dismissal protection for industrial action

Dismissal for taking part in industrial action is expected to become ‘automatically unfair’. This will remove the current 12-week limit for claiming unfair dismissal. This change is expected 2 months after the Bill becomes law.

Trade union activity

The changes listed below are expected 2 months after the Bill becomes law:

  • the time needed to give notice of industrial action will reduce to 10 days, instead of 14 days
  • unions will need a simple majority to vote for industrial action
  • picket supervisors will no longer be required
  • industrial action mandates will last for 12 months, instead of 6 months
  • industrial action and ballot notices will be simplified
  • political fund rules will change

April 2026 changes

Paternity leave and unpaid parental leave

The changes listed below:

  • paternity leave and ordinary parental leave are expected to become ‘day one rights’ – allowing someone to give notice to take leave from their first day in a new job
  • the restriction on taking paternity leave after shared parental leave is likely to be removed

Sick pay

The changes listed below:

  • statutory sick pay (SSP) will be paid from the first day of illness, instead of the fourth day
  • the lower earnings limit will be removed – currently, workers must earn a minimum amount to be eligible for statutory sick pay

Collective redundancy protective award

The maximum ‘protective award’ for failure to consult in collective redundancy is expected to double from 90 days’ pay to 180 days’ pay.

Whistleblowing protections for sexual harassment

Sexual harassment is expected to become a ‘qualifying disclosure’ under whistleblowing law. This will mean protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.

Gender pay gap and menopause action plans

It is expected that employers will need to create action plans around menopause and gender pay gaps.

More trade union changes

The changes listed below:

  • simplifying how a trade union can gain recognition in a workplace
  • allowing trade union members to vote electronically

Fair Work Agency

It is expected that the Fair Work Agency will be established to:

  • bring together existing enforcement bodies
  • take on enforcement of other employment rights, such as holiday pay and statutory sick pay

Changes in October 2026

Many of the proposed changes listed below are subject to government consultations. The details may change which is why we do not go into them in any detail at this stage. We just provide the headings.

Dismissal and rehire

Harassment

Tipping

Employment tribunal time limits 

Proposed to increase from 3 months to 6 months for bringing a claim

More changes to trade union rules

2027 changes

The government has not announced yet when in 2027 the changes listed below are expected. Many of these proposed changes are subject to government consultations. The details may change which is why we do not go into them in any detail at this stage (apart from about the unfair dismissal day one right). We just provide the headings.

Unfair dismissal day one right

It is expected that protection from unfair dismissal will become a right from the first day of employment. Currently, someone must have worked for their employer for 2 years before they can claim unfair dismissal. It is expected there will be a probationary period of up to 9 months during which time an employer can more easily terminate an employee.

Increased pregnancy and maternity rights

Bereavement leave

Zero-hours contracts

Compensation for cancelled shifts

Flexible working

Further harassment change

Mandatory gender pay gap and menopause action plans

Collective redundancy

Even more trade union changes

Regulation of umbrella companies

 

Tom Redfern   email: tredfern@redfernlegal.com