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UK HR Newsletter – July 2024

The UK Employment Rights Bill 2025 introduces major reforms that will significantly impact how employers manage contracts, dismissals, sick pay,...
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Key Changes in the UK Employment Rights Bill 2025

The UK Employment Rights Bill 2025 introduces major reforms that will significantly impact how employers manage contracts, dismissals, sick pay, zero hours arrangements, and workplace protections.

Key updates include:

  • Can you claim unfair dismissal before 2 years?
    Yes — under the new rules, the two-year qualifying period for unfair dismissal will be removed. Employees may now be protected from day one, particularly during the statutory probation period.

  • What’s changing with zero hours contracts in the UK?
    Employers will be required to offer guaranteed hours to casual workers based on recent working patterns. Workers will also gain rights to reasonable notice of shifts and compensation for last-minute changes — including agency workers.

  • Is statutory sick pay changing in the UK?
    Yes. Statutory Sick Pay (SSP) will be payable from day one of sickness, and the lower earnings limit will be removed. SSP will be calculated at 80% of average weekly earnings.

  • Are there new employee rights around miscarriage?
    Employees who suffer a pregnancy loss before 24 weeks will be entitled to two weeks’ bereavement leave.

  • What is the Fair Work Agency?
    A new government body with enforcement powers to handle breaches such as underpayment of wages, unlawful deductions, and exploitation. It will also be able to bring tribunal claims on behalf of workers.

  • What are the new rules around fire and rehire?
    The practice of fire and rehire will be automatically considered unfair dismissal unless properly justified and supported by contractual variation clauses.

  • What is the new timeline for collective redundancy consultations?
    If 20 or more employees are at risk, collective consultation is mandatory, and the protective award will increase from 90 to 180 days’ pay.

  • When do these changes take effect?
    Key changes will roll out from Royal Assent (2025) through to 2027, with implementation dates staggered across April 2026, October 2026, and into 2027.

Employers should review their contracts, policies, and HR processes now to stay ahead of these reforms. Early planning will help ensure compliance and reduce risk.

What This Means for Employers

These upcoming changes represent a major shift in UK employment law and will require employers to take proactive steps to stay compliant. Whether you’re managing shift-based teams, reviewing contracts, planning redundancies, or simply updating your HR policies, now is the time to assess how the Employment Rights Bill will impact your organisation.

Understanding which changes apply to your business, and when, is essential to avoid legal risk and maintain fair, transparent employment practices. From reviewing dismissal processes to preparing for new statutory rights, the HR landscape is evolving quickly.

Need Help Preparing?

Our HR experts are here to support you. Whether you need guidance on policy updates, employment contracts, or planning for phased changes through to 2027, we’re ready to help.

📞 Book a consultation with a HR Advisor +44 (0)800 008 6036 
📧 Email us at hr@blackmountainhr.com 

🖥️ www.blackmountainhr.com/contact