Employment Rights Bill 2025: Timeline, reforms, and employer guidance

24 September 2025

Consultations on the Employment Rights Bill (the Bill) are expected to begin again in autumn 2025, after progress on the Bill was temporarily paused during the summer recess.

Parliamentary consideration will resume in early September for the third reading phase of the Bill which is set to take place in the first week after parliament returns, with Royal Assent anticipated now later in the autumn.

While the Bill is moving forward, the timescale for implementation is more gradual. Most of the proposed reforms are not expected to come into effect until at least April 2026, giving employers some time to prepare for the changes once the details are finalised.

Until the outcome of consultations is known, employers will face some uncertainty in workforce planning and policy development and will need to monitor developments closely as the Bill progresses through Parliament, we will ensure to update on any changes which are either agreed or rejected.

As mentioned above, the Bill will be moving into its third reading, this is the final stage of a Bill’s passage through either the House of Commons or the House of Lords. At this point, members debate the Bill in its finished form, after all the detailed scrutiny and amendments at committee and report stages. In the Commons, no further amendments are allowed — MPs simply discuss the overall content of the Bill and then vote on whether it should proceed. In the Lords, further (generally small or technical) amendments can still be made, but the main purpose is still to look at the Bill as a whole.

For the Employment Rights Bill, the third reading will be the stage where Parliament decides if it approves the Bill in its current form (including any changes made in the Lords). If the two Houses disagree on amendments, the Bill will then move back and forth until both Houses agree on the final wording.

The roadmap for implementing the Bill outlines a phased approach, giving employers an early indication of when key reforms will take effect. According to the current plan, significant changes are expected around September or October 2025, at or soon after Royal Assent. These include the repeal of the Strikes (Minimum Service Levels) Act 2023 and most provisions of the Trade Union Act 2016, the removal of the 10-year ballot requirement for trade union political funds, and the simplification of industrial action and ballot notice procedures. In addition, employees will gain greater protection from dismissal when taking part in industrial action. While this timeline provides clarity on the reforms ahead, it is still subject to change if the Bill’s progress through Parliament is delayed.

Whilst the Bill is making progress through the stages there are still issues to be resolved due to proposed amendments by the Lords about concerns over more burdens placed upon employers as a result of the Bill. This can be seen when looking at minimum guaranteed hours for zero-hour contracts meaning that Employers would be required to offer contracts that reflect the hours workers regularly perform, provide reasonable notice of shift changes, and compensate for shifts that are cancelled or reduced. Furthermore, if an employee consistently works more hours than their contract specifies, the Government’s position is that employers must automatically offer a contract reflecting these minimum hours, even if the employee does not request it. The House of Lords, however, has proposed an amendment that would limit this right to cases where the employee actively requests an uplift in guaranteed hours, which would reduce the administrative burden for employers.

In addition to the proposed changes for zero-hours contracts, the Bill also introduces significant reforms to unfair dismissal protections, which have become one of the most debated aspects of the legislation. The Government’s position is that employees should have the right to bring a claim for unfair dismissal from day one of employment. As previously set out, this represents a major shift from the current two-year qualifying period and is intended to provide workers with much stronger job security from the outset of their employment. However, the Government also acknowledges the need for flexibility during probationary periods and has therefore proposed that employers could still dismiss staff within this timeframe if they follow a “lighter touch” process expected to last for around nine months.

The House of Lords has taken a different view, proposing that the right to claim unfair dismissal should only arise after an employee has completed six months of service. While this still reduces the qualifying period which is currently two years, it does not go as far as the Government’s plan for day-one rights.

With the Employment Rights Bill moving through Parliament and key reforms expected from 2026, employers face a period of uncertainty and important compliance considerations. Our employment law specialists can help you navigate these changes, assess the impact on your workforce, and update your policies to ensure you are prepared. Contact Backhouse Jones today to discuss how the Bill could affect your business and plan your next steps.

This article was written by Gabrielle Scriven.