Your up-to-date guide on the forthcoming employment law changes

You would be forgiven if you are feeling a little confused over the upcoming employment law changes. They have felt much discussed, ever changing and a long time coming. So keeping on track of the new laws and understanding what this means for employers in practical terms can be difficult. But let us help you out. Paula Squire, employment partner, offers key insights for employers on the changes that are coming and how to get ready!

The Employment Rights Bill sets out key changes to key elements of employment law. These reforms have been heralded as aiming to strengthen worker protections, improve working conditions and modernising employer obligations. On 1 July 2025, the government published a roadmap for the delivery of the Employment Rights Bill, offering insight on potential implementation dates.

Here’s a summary of the most important updates for employers as we break down the roadmap. In short, we are expecting a few changes to happen in 2025, but with most changes in 2026 and 2027. These timings are still under review and may be subject to change, but we will keep you posted when we hear more.

2025 employment law changes

In coming months, we are expecting the following key changes:

• Trade Unions, industrial and strike action: It’s expected that rules around ‘minimum service levels’ for strikes will be removed. Furthermore, dismissals for taking part in industrial action is expected to become ‘automatically unfair’. This will remove the current 12-week limit for claiming unfair dismissal; and additional changes for Trade Union activity, including unions will need a simple majority to vote for industrial action and industrial action and ballot notices will be simplified.

2026 employment law changes

In April 2026, we are expecting the following changes will take effect, and this will roll around before you know it:

• Paternity leave and ordinary parental leave: These rights are expected to become ‘day one rights’ – allowing an employee to give notice to take leave from their first day in a new job and the restriction on taking paternity leave after shared parental leave is likely to be removed;
• Sick Pay: Statutory Sick Pay will be paid from the 1^st day of illness instead of the 4^th, so your contracts and policies may need to be reviewed.
• Gender Pay Gap and menopause action Plans: It’s expected that employers will need to create action plans around menopause and gender pay gaps. These are likely to be voluntary from April 2026 and mandatory in 2027.
• Redundancy award changes: The maximum ‘protective award’ for failure to consult in collective redundancy situations is expected to double from 90 days’ pay to 180 days’ pay. This is quite the increase.

In October 2026, we are expecting the following changes:

• Fire and rehire: Dismissing someone then rehiring them on worse terms and conditions is expected to become an automatically unfair dismissal in most cases. This is also known as ‘fire and rehire’. The new laws intend to extend the ban to scenarios where employers dismiss employees and replace them will self-employed contractors, workers, agency workers or other non-employed individuals to do the same work. Any dismissal in this situation will be automatically unfair unless the employer is facing financial collapse and the dismissal could not be avoided. Here ensuring you have a good contract in place with built in flexibilities will greatly assist in this regard.
• Sexual harassment preventative measures: a new duty for employers to prevent harassment from third parties, for example customers or clients together with employers needing to take ‘all reasonable steps’ to prevent sexual harassment. Let us know if you are interested in our popular employer training to assist in meeting your legal obligations.
• NDAs: A change to the law around non-disclosure agreements (NDAs) is also expected. This will void clauses that would prevent workers from alleging or disclosing work-related harassment or discrimination.
• Tipping: Updates to tipping law are expected to say employers will need to consult with workers or their representatives before creating a tipping policy and update their tipping policy every 3 years. Let us know if you would like us to review your tipping policies.
• Employment tribunal time limits. Time limits for making a claim to an employment tribunal are expected to increase to 6 months for all claims. The current time limit for most claims is 3 months.

2027 employment law changes

Moving into 2027, we have the largest of planned changes as follows:

• Unfair dismissal day one right: It’s 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 planned that there will be ‘light touch’ procedures allowing dismissal during an “initial period” (probationary period) which will likely include a meeting with the employee to explain concerns (at which the employee could be accompanied). This easier process is expected to apply where (a) the termination date is no later than 3 months after the end of the initial period, provided notice was served during that period; and (b) the reason for dismissal is capability, conduct, illegality or some other substantial reason relating to the employee.

This lighter process will therefore not apply to a redundancy dismissal. Indications are this “initial period” will be for a 9-month period.

The new laws also clarifies that there is no right to claim unfair dismissal if the employee has entered into an employment contract but has not actually started work. Unless the dismissal is related to a reason that is automatically unfair such as a political opinion or a spent conviction.

• Zero-hours contracts – Workers on zero-hours contracts are likely to get the right to guaranteed working hours, if they want them. Whilst the new laws do not seek to ban “exploitative” zero-hours contracts, as had been expected, the effect of the new provisions will impact upon their use.

The offer of guaranteed hours must reflect the hours worked during a defined reference period (most likely 12 weeks). It is likely regulations will provide additional details regarding the specific working pattern or days that must be offered. It also remains to be confirmed what prescribed form the offer must be made in and how long it must remain open for (potentially no less than a week). There will be some exceptions to address the issue of short-term labour needs with the offer being a fixed-term contract if that is reasonable (so not permanent guaranteed hours).

Also, importantly, amendments to the new provisions will potentially allow for the duty to offer guaranteed hours to be disapplied by the terms of a collective agreement without requiring this to be substituted with a similar entitlement.

A worker who is not offered hours on these terms can bring an employment tribunal claim, with the maximum award to determined.

• Flexible working: An employer will not be able to refuse a flexible working request unless they state the reasons and explain why they believe their refusal is reasonable.
• Compensation for cancelled shifts – It’s expected that workers will have the right to be paid if a shift is cancelled, moved to another date, or cut short by an employer.
• Increased pregnancy and maternity rights: The Bill intends to strengthen protections against dismissal for pregnant workers and those returning from maternity leave. Currently, in redundancy situations, women have the right to be offered suitable alternative employment (if available) once they inform their employer of their pregnancy or if their expected date of childbirth was less than 18 months ago.

The new laws would give the government powers to introduce regulations to cover other dismissals (which are not redundancies) taking place during pregnancy, maternity leave or following a return to work and that the protection will also apply to other forms of family leave such as adoption leave, shared parental leave, neonatal care leave and bereaved partners’ paternity leave.

• Bereavement leave: A new right to statutory bereavement leave, as a day 1 right, is expected. It’s not known yet whether this will be paid or unpaid leave.

Next steps for employers

For employers, the new changes will present a sizeable compliance challenge, so preparation is key to get your house in order and to stay compliant and mitigate risk. We would advise you begin considering your existing practices and policies and understand what will need to be changed or adapted. We have been assisting a number of our clients with an impact assessment of the changes and working practices together with training managers and HR teams. Please get in touch or call 0345 209 1000 if this is of interest to you.

We will also be specifically navigating these changes in our upcoming Employment Law & HR Conference on 21 October.