The UK’s Employment Rights Bill is set to become law as the Employment Rights Act 2025 and arguably represents the most significant overhaul of workplace legislation in a generation.
What’s Changing - At a Glance:
Worker Rights
Day-one entitlements for statutory sick pay, paternity leave, and parental leave, removing previous service thresholds before these rights kick in.
Bereavement leave rights, including protection for those experiencing loss.
Broader eligibility for sick pay — payable from the first day of absence and available to more workers regardless of earnings.
Flexible (and Predictable) Work
New obligations on zero-hours and low-hours contracts, including guaranteed hours reflecting regular work patterns, reasonable notice of shifts, and compensation for last-minute cancellations.
Dismissal Framework
Unfair dismissal protection comes earlier — reduced from two years’ service to six months.
Compensation caps may be lifted or increased (this has been a focal point of recent parliamentary negotiation).
Workplace Standards
Restrictions on “fire-and-rehire” practices and duties on employers to prevent harassment and discrimination.
Enhanced whistleblowing protections and simplified processes for trade union recognition.
New Enforcement & Support Structures
A Fair Work Agency will be established to oversee compliance and help resolve disputes.
Extended tribunal claim limits to make it easier for workers to bring legal challenges.
Phased Implementation
Initial reforms (e.g., day-one rights to sick pay and family leave) start from April 2026, with broader measures (guaranteed hours, harassment duties, flexible work enhancements and more) rolling out through 2026–27
Change of this scale isn’t simply legal - it’s organisational. Employers that take a proactive approach to these new standards won’t just comply; they’ll lead. Whether through strengthened wellbeing policies, fair pay practices, or inclusive culture building, this legislation sets a platform for redefining what “good work” means in the UK.
There are some voices raising concerns - some retail leaders are worried that changes could limit workplace flexibility and slow hiring, especially in sectors that depend on part-time and peak-demand staffing (eg retail). While concerns about the impact on this kind of part-time work are unsurprising, at 9-2-3 Jobs we see flexible and part-time roles as a powerful way to grow businesses positively and sustainably - enabling organisations to scale at an affordable pace, and at a rate that truly suits their needs. Flexible hiring also unlocks access to experienced talent that might otherwise be out of reach - for example, bringing marketing, finance or legal expertise in-house on a fractional basis, rather than committing immediately to full-time headcount. This isn’t about limiting growth; it’s about growing smarter.
The path forward clearly requires thoughtful planning, clear communication, and early engagement with HR and legal partners.
We would love to hear how your organisation is preparing for these changes - what’s your biggest priority for 2026?
The 9-2-3 team is here to help. If you’re rethinking how you build teams in a changing employment landscape, we’d love to explore how flexible hiring could support your growth.