UK Government’s Employment Rights Bill Roadmap: A New Chapter for Workers

In July 2025, the UK Government published its long-awaited roadmap for implementing the Employment Rights Bill, The roadmap outlines a phased rollout of 28 major reforms between 2026 and 2027, with some changes taking effect immediately after Royal Assent, expected in Autumn 2025.

This ambitious reform agenda is part of the government’s broader “Make Work Pay” mission, aimed at tackling low pay, insecure work, and outdated employment practices. It promises to reshape the UK’s labour market by introducing new rights, enhancing enforcement, and promoting fairness and flexibility.

Core Objectives of the Bill

The Employment Rights Bill seeks to:

• Guarantee day-one rights for key entitlements like unfair dismissal and parental leave

• Improve access to flexible working arrangements

• Protect workers in precarious roles, including those on zero-hours contracts

• Strengthen trade union rights and industrial relations

• Promote equality and transparency in the workplace

• Establish a new Fair Work Agency to enforce labour standards

Phased Implementation Timeline

The roadmap breaks down the reforms into four key phases:

Phase 1: Winter 2025 – Immediate Changes

• Protections for industrial action participants: Workers will be shielded from dismissal for lawful participation

• Simplified rules for industrial action ballots and notices

Phase 2: April 2026

• Day-one rights for paternity leave and unpaid parental leave

• Statutory Sick Pay (SSP) extended to low-paid workers and available from day one

• Fair Work Agency launched to enforce minimum wage, holiday pay, and SSP

• Doubling of protective awards for breaches in collective redundancy consultations

• Sexual harassment recognised as a whistleblowing issue

Phase 3: October 2026

• Restrictions on fire-and-rehire tactics

• Expanded trade union access rights

• Duty to inform workers of union rights

• Extended tribunal claim time limits (from 3 to 6 months)

• New protections for harassment and sexual harassment

Phase 4: Throughout 2027

• Day-one unfair dismissal rights, with a statutory probation period (government prefers 9 months; Lords suggest 6 months)

• Guaranteed hours contracts for zero-hours workers who regularly work  set hours

• Bereavement leave introduced for pregnancy loss

• Equality action plans required for large employers, including menopause support

• Strengthened flexible working rights and clearer shift notice requirements

Major Reforms in Detail

1. Flexible Working by Default

Employees will be able to request flexible arrangements from day one. This includes remote work, compressed hours, and flexitime. Employers must provide “reasonable” grounds for refusal and consult with employees before making decisions.

2. Unfair Dismissal Reform

The right to claim unfair dismissal will become a day-one entitlement. However, employers may dismiss during a probationary period using a “lighter-touch” process. This reform aims to balance worker protection with business flexibility.

3. Zero-Hours Contracts

Workers on irregular contracts will gain the right to request more predictable hours. Employers must give reasonable notice of shift changes and compensate for cancellations. These protections will also apply to agency workers.

4. Transparency and Equality

Large employers (250+ staff) must publish Equality Action Plans, including gender pay gap data and menopause support. This is designed to foster inclusive workplaces and reduce systemic inequalities.

5. Strengthened Enforcement

The newly formed Fair Work Agency will have powers to inspect workplaces, demand documents, issue penalties, and bring legal proceedings on behalf of workers. It consolidates existing enforcement functions and is expected to expand its remit over time.

6. Industrial Action and Trade

Union Rights

The Bill enhances protections for workers involved in lawful industrial action and simplifies the process for ballots and notices. Trade unions will gain greater access to workplaces, and employers will be required to inform workers of their union rights.

7. Bereavement Leave for Pregnancy Loss

New rights will allow time off for grief following pregnancy loss at any stage, including miscarriage and ectopic pregnancies — a compassionate expansion beyond current rules.

8. Tribunal Time Limits Extended

The time limit for bringing employment tribunal claims will increase from three to six months, giving workers more time to seek justice.

9. Pay and Tips Transparency

Employers will be legally required to pass on 100% of tips and service charges to workers. Pay structures must be more transparent to help close wage gaps.

Industries like retail, hospitality, manufacturing, and logistics are expected to face the greatest implementation hurdles due to their reliance on in-person work and variable scheduling.

What’s Next?

The government has scheduled consultations to refine the details of several reforms, including the statutory probation period and guaranteed hours contracts. These consultations will shape the final regulations and help employers prepare for compliance.

While the Bill has passed through the House of Commons, it is currently in its final stages in the House of Lords. Royal Assent is expected in Autumn 2025, triggering the first wave of reforms.

The Employment Rights Bill represents one of the most comprehensive overhauls of UK employment law in decades. It promises stronger rights and fairer treatment for workers, but also demands significant adjustments from employers. As the roadmap unfolds, both sides of the labour market will need to adapt to a new era of transparency, flexibility, and accountability.

If you need confidential advice on any of these challenges, or any employment related issues contact Alex Jones at ajones@365employmentlaw.co.uk