Big changes are brewing in the UK employment scene, with the Labour Employment Rights Bill leading the charge. From making unfair dismissal protections a day-one right to cracking down on zero-hour contract abuse and introducing mandatory pay gap reporting, these reforms aim to create a more balanced and equitable workplace. But what do these changes really mean for you, whether you're running a business or working a 9-to-5? Let's break it down—here’s everything you need to know about what’s coming, when it’s happening, and how it could impact you.
Unfair Dismissal: A Day-One Right
Currently, employees need two years of service before they can claim unfair dismissal. That’s set to change, with the new laws making unfair dismissal protections a right from day one. However, there will likely be an “initial period” (think probation period), where a more flexible dismissal process may apply. This period could range from 3 to 9 months—details are still up in the air.
Next steps: The government will consult on this reform, but it won’t take effect before autumn 2026.
A Ban on Fire-and-Rehire Practices
"Fire and rehire" tactics—where employees are dismissed and rehired under worse terms—will soon be heavily restricted. Under the new rules, it will be automatically unfair to dismiss an employee for refusing new terms or to replace them with someone on different conditions. Employers acting out of genuine financial necessity may still have some exceptions, but these will be tightly controlled.
Next steps: Expected to roll out sometime in 2026.
Zero-Hour Contracts: New Protections
Zero-hour contracts aren’t disappearing, but they’re about to get fairer. Employers won’t be allowed to block workers from taking other jobs, and they’ll need to offer guaranteed hours if an employee regularly exceeds their contracted minimum over a 12-week reference period. Other new rules will include reasonable notice for shifts and compensation for last-minute changes.
Next steps: Consultation is underway, but there’s no firm timeline yet.
Pay Gap Reporting: Going Beyond Gender
It’s time for pay transparency to level up. Gender pay gap reporting already exists for companies with 250+ employees, but new laws will require these businesses to also publish action plans for closing the gap—and face penalties if they don’t. Reporting on ethnicity and disability pay gaps will also become mandatory, making workplaces more inclusive.
Next steps: Consultations are in the works, with no clear implementation date yet.
The Right to Switch Off
Work-life balance just got a boost. A new statutory code of practice will protect employees from being contacted outside of working hours—except in exceptional cases. Think of it as your right to "log off" guilt-free.
Next steps: Consultation on the code is expected in 2025.
Family Leave Gets an Upgrade
New laws will provide day-one rights to bereavement, parental, and paternity leave, giving families more support when it matters most.
Next steps: Consultations begin in 2025, with implementation expected in 2026.
Neonatal Leave for Parents
The Neonatal Care (Leave and Pay) Act 2023 provides up to 12 weeks of paid leave for parents whose babies require hospital care for 7 consecutive days or more within their first 28 days of life. To qualify, employees need 26 weeks of service and earnings of at least £123 per week.
Next steps: This kicks in starting April 2025.
Statutory Sick Pay for All
Big changes are coming to Statutory Sick Pay (SSP). The minimum earnings threshold and the 4-day waiting period will be scrapped, making SSP payable from day one—and available to all employees, regardless of income.
Next steps: Consultations start in 2025, with changes expected by 2026.
Extended Tribunal Time Limits
Currently, you have 3 months to bring a claim to an employment tribunal. The new rules will double that to 6 months, giving employees more time to take action on issues like unfair dismissal or discrimination.
Next steps: Consultations begin in 2025, with implementation expected in 2026.
The Bottom Line
The Labour Employment Rights Bill is a game-changer, offering stronger protections, greater transparency, and better work-life balance for employees across the UK. While many of these changes are still in the planning stages, they signal a significant shift toward prioritising worker rights and wellbeing. For employers, this is a wake-up call to review practices and prepare for a new era of accountability. With implementation stretching into 2026, now’s the time to stay informed and ready for the future of work.
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