The Government’s flagship Employment Rights Bill has passed through both Houses of Parliament this week and is expected to receive Royal Assent before Christmas, formally becoming law.
The Bill has spent recent weeks moving between the Commons and the Lords, with a number of proposed amendments debated and refined along the way. One of the most closely watched areas was the introduction of day one unfair dismissal rights, which attracted significant discussion across both Houses.
While the Bill will become an Act upon Royal Assent, likely later this year, many of its reforms will not take immediate effect. A number of changes will require secondary legislation before they are implemented. Earlier this year, the Government had also published an implementation Roadmap to set out its proposed timescales for various changes between now and the end of 2027.
Key changes introduced by the Act
Once introduced, the Act will mark one of the most significant changes to employment law in many years, affecting almost all workers and employees. Key measures include:
Unfair dismissal reform- including a reduction in the qualifying service period from two years to six months and the removal of the current statutory cap on compensation
Flexible working changes- changing how employers must consider flexible working requests and the reasons on which they may be refused
Zero-hour contracts with a formal consultation planned and new rights and protections expected to be introduced from 2027
Amendments to the rules around collective redundancy consultation- including when consultations are required and how those obligations must be met
Extended Tribunal time limits- increasing the limitation period from three to six months. This follows the recent extension of the Acas Early Conciliation period from 6-12 weeks
Harassment law reform- an enhanced duty on employers to take all reasonable steps to prevent harassment
Strengthened Statutory Sick Pay- widening entitlement and improving protection for lower-paid workers
Trade union reforms- significant changes to the recognition process and workplace access rights
What happens next?
The New Year will inevitably be a busy period for employment law and HR practitioners as we continue to get to grips with these changes and keep a close eye on any secondary legislation which is required to bring these policies fully into law.
The Employment Law and HR Services teams at Frettens will be providing regular updates and practical guidance as these changes are implemented, helping employers navigate some of the most significant developments in employment law for a generation.
In light of this update, the first Coffee Break Briefing of 2026 will take place on Wednesday 14 January with Chris Dobbs and Justine Mears sharing their thoughts on what we can expect from 2026.
How can we support you?
At Frettens, our Employment & HR Team brings together over 60 years’ combined experience in supporting clients across all stages of the employment relationship. We provide clear, practical advice to help you manage your workforce with confidence, from day-to-day HR matters through to complex employment issues.
If you would like expert advice or simply have questions about how these reforms may affect you, please contact us on 01202 499255. Frettens Solicitors offers all new clients a free initial chat, which can be arranged by completing the form at the top of this page.
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