In October 2024, the Government published the Employment Rights Bill, paving the way for the most significant reforms to UK employment law in decades. After months of debate and amendments, the Bill is now close to Royal Assent. In the latest developments, here are the key updates employers need to know.
Unfair dismissal: from two years to six months
Labour’s original pledge of day-one protection against unfair dismissal has been scaled back. Following strong opposition from business groups and amendments in the House of Lords, the Government accepted a six-month qualifying period before employees can bring an unfair dismissal claim.
This is still a major shift from the current two-year qualifying period under the Employment Rights Act 1996. Importantly:
- Day one protections remain for discrimination and automatically unfair reasons
- The Government has committed that the qualifying period can only be changed by primary legislation, adding certainty for employers.
- The compensation cap for unfair dismissal will be lifted, strengthening remedies for employees.
Why the change?
Business groups argued that day one rights could discourage them from hiring, especially for SMEs and sectors reliant on seasonal or entry-level roles. In response, Ministers convened discussions with trade unions and employers, leading to the six-month compromise.
Statutory probationary period
The introduction of the statutory 9 month probationary period has been removed, but having strong probationary, disciplinary and performance processes and training managers on these procedures will still be essential to minimise claims after employees have reached 6 months service.
Zero-hours contracts
The Bill introduces a right to guaranteed hours for zero-hours and low-hours workers after a reference period, likely to be 12 weeks (to be confirmed).
What does this mean?
- Employers must offer a contract reflecting actual hours worked during the reference period.
- Workers can decline the offer and remain on zero-hours arrangements.
- Agency workers are included and end hirers will bear responsibility for guaranteed hours offers.
The Government will consult on definitions and seasonal work exemptions.
Workers who are not offered hours on these terms may be able to bring an employment tribunal claim, with the maximum award to be set out in regulations.
Right of trade union access
The Bill significantly strengthens trade union rights:
- Right of access: Unions can request physical and digital access to workplaces for recruitment and collective bargaining. Employers must respond within five working days, with unresolved cases going to the CAC. Small employers (<21 workers) may be exempt.
- Ballots and thresholds: The Bill removes the 40% support threshold and lowers hurdles for recognition. It also gives the Government power to reduce the required threshold for union membership to as low as 2% of the proposed bargaining unit through secondary legislation.
- Opt-out for political funds: The Bill reverses the Trade Union Act 2016, reinstating the opt-out system for union political funds.
ACAS early conciliation
From 1 December 2025, the ACAS Early Conciliation period will double from six weeks to 12 weeks. This aims to ease pressure on ACAS and allow more time for settlement before tribunal claims.
What’s next?
The Bill is expected to receive Royal Assent soon, with phased implementation and further consultation on key areas. Employers should start reviewing and updating:
- Probation, performance and dismissal policies
- Ensure contracts are up to date
- Workforce strategies for zero-hours and agency workers
- Trade union engagement strategies
- Audit staffing contracts, structures, and compliance
- Train HR teams and managers
The government have promised further consultation once the Bill has received Royal Assent.
Need advice?
Our employment team can help you and are offering HR Audits which can include a full review of your contracts, policies and procedures and offer guidance and support for ensuring businesses are prepared for the changes.
We can tailor our Audit depending on your business and requirements. Please contact us for a quote for a HR Audit.
Get In Touch
Eleanor Clarke is a Trainee Solicitor in our employment law team.
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