The UK’s Employment Rights Bill is now extremely close to becoming law, marking what many commentators describe as the most significant overhaul of employment rights in a generation. After passing its final hurdle in the House of Lords, the Bill is expected to receive Royal Assent imminently, with major changes beginning to take effect from 2026 onwards.
For employers, this is not just another update to the rulebook. It is a fundamental shift in the foundations of UK employment law — one that will require new ways of thinking, managing, and embedding inclusive practices.
Below, we break down the key changes and why early action is so important.
1. New Rights and Enhanced Protections for Workers
Unfair Dismissal Protection After Six Months
One of the most significant reforms is the reduction in the qualifying period for unfair dismissal claims from two years to six months. This change alone will transform how employers handle probation, onboarding, performance, and exit decisions.
In practice, this means employers must be more structured, consistent, and evidence-led from the very first weeks of employment. Clear probation periods, and training for managers so that they are managed effectively is key here.
Day-One Statutory Rights
The Bill also introduces key day-one entitlements, including:
- Statutory sick pay from day one
- Parental and paternity leave from day one
- Stronger rights around flexible working
These changes require updates to payroll systems, contracts, handbooks, and internal processes.
Zero-Hours Contracts and One-Sided Flexibility
While not banning zero-hours contracts entirely, the Bill places significant limits on exploitative arrangements. Workers will gain the right to a contract that more accurately reflects the hours they routinely work.
Employers using casual labour will need to re-evaluate resourcing structures, rostering, and HR practices.
2. Restricting Fire-and-Rehire & Strengthening Harassment Protections
The Bill restricts the use of “fire and rehire” practices in most situations and strengthens employers’ duties to prevent workplace harassment.
This will require employers to take a proactive stance on culture, communication, and organisational change — as well as updating their policies and consultation processes.
3. Industrial Relations and Collective Rights
The reforms include:
- Changes to strike rules and ballot thresholds
- Enhanced trade union access rights
- Repeal of key elements of the Strikes (Minimum Service Levels) Act 2023 and Trade Union Act 2016
Employers should prepare for a more active and more empowered trade union landscape.
4. The Impact on Minority Groups and Disabled People
While the Bill affects all UK workers, its impact will be felt most acutely by minority ethnic groups, disabled people, neurodivergent individuals, women, and those in insecure or low-paid work.
These groups are statistically more likely to:
- Experience discrimination during probation
- Be disproportionately affected by sickness absence policies
- Hold zero-hours or unpredictable shift-based roles
- Be excluded from fair performance processes
- Face harassment or microaggressions
- Lack access to reasonable adjustments
The introduction of day-one rights, stronger early employment protections, and renewed duties around harassment creates a long-overdue opportunity to reduce systemic inequalities.
However, there is also risk.
If employers react by rushing dismissals, tightening attendance rules, or failing to train managers, discrimination claims could actually increase – particularly for disabled and neurodivergent employees whose needs are misunderstood or ignored.
This is why legal compliance and inclusion must go hand in hand.
5. What Employers Should Do Now
✔ Review contracts, handbooks and probation processes
Shorter qualifying periods mean poor documentation could lead to claims earlier than ever before.
✔ Revisit attendance and performance management
Day-one rights must be balanced lawfully with equality and reasonable adjustments.
✔ Train managers
Manager capability will make or break early implementation.
✔ Take an inclusive approach
Embedding inclusion is not optional – it is essential for legal compliance, fairness, and attracting talent.
✔ Start preparing now
Many reforms will be phased in across 2026–27.
How Thrive Law Can Support You
The Employment Rights Bill is a once-in-a-generation shift — and organisations that prepare early will be better protected legally, culturally and commercially.
At Thrive Law, we help employers:
- understand the legal changes clearly and practically, building you a personalised road map for your business on the changes which impact your business (keeping it relevant and pragmatic),
- update contracts, handbooks and HR processes,
- train managers to understand their role int he changes and how to manage new recruits and probation period effectively
- create inclusive cultures that reduce legal risk,
- prepare strategically for phased implementation, relevant to your business and aligned with your future goals and people strategy.
📩 To discuss how these changes will affect your organisation, email us at:
👉 enquiries@thrivelaw.co.uk
For a deeper dive into how we can support your business and practical steps you can take, visit our employment law page.
