Update – Employment Rights Act 2025
Since this article was first published, the Employment Rights Bill has received Royal Assent and is now law as the Employment Rights Act 2025.
For a full summary of the confirmed reforms, implementation dates and what employers should be doing now, read our latest guide: Employment Rights Act 2025: Key Changes for Employers
The Employment Rights Bill will introduce significant reforms across a wide range of employment protections. Once approved by Parliament, the Bill will then receive Royal Assent and will become law.
Given the summer recess, it seems unlikely that the Bill will become law before the end of September/early October 2025.
Even when the Bill becomes law, further regulations will still need to be drafted to bring the changes into force, which will be shaped by significant consultations.
Below, our Employment Lawyers give an overview of the roadmap to implementation.
Implementation Timeline at a Glance
The government’s ambitious reform programme is currently set out in a proposed timeline, combining swift legislative reversals with a phased rollout of new employment rights and obligations. While the roadmap offers indicative dates, these are subject to consultation outcomes and may shift. The summary below outlines the key milestones as currently anticipated.
Practical impact
The roadmap provides valuable structure and clarity, but much of the final detail will depend on the outcome of upcoming consultations and the framing of secondary legislation. For now, it offers employers a helpful window into what is coming and when.
Perhaps most notably, the “day one” right to protection from unfair dismissal will not come into force until 2027. This will be a relief to many employers navigating volatile economic conditions.
However, businesses planning redundancies or restructures should prepare for earlier changes.
Particularly as:
- from April 2026, the protective award for failure to consult collectively will double;
- the ban on fire and rehire (October 2026) will restrict flexibility on contractual changes; and
- although new thresholds for triggering collective redundancy consultation won’t take effect until 2027, the window to act under the current regime is narrowing.
The timeline also confirms that 2025 will bring minimal legislative change, giving most employers breathing space. However, sectors exposed to industrial action should note that trade union-related reforms are being brought forward.
These include repeals of restrictive strike legislation and new protections for those taking industrial action, likely shifting the power dynamic in workplace disputes. Employers in these sectors should review their industrial relations strategies now.
Update - 16 July 2025 (pre-Royal Assent position)
This update reflects the position before the Bill received Royal Assent. The final position is now set out in the Employment Rights Act 2025.
The House of Lords has voted for an amendment to the Bill that would replace the "day one" unfair dismissal rights with a six month qualifying period.
The Bill will need to go back to the House of Commons for consideration and so the final decision has not been made.
However, if this amendment stays it will mean that employees will ordinarily need to be in employment for six months before they are able to bring an unfair dismissal claim.
We will release further updates as matters progress. In the meantime, you can access the roadmap in full here.
Contact Our Employment Lawyers
If you’d like to discuss any of the provisions included in the Employment Rights Bill or how we can help your business prepare in light of the roadmap, please do not hesitate to contact our specialist Employment team.
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