Employment law changes are coming and businesses need to be prepared, says Rebecca Dennis of Goughs.

The new government promised an Employment Rights Bill within its first 100 days. It has happened. On October 21 the Bill had its second reading in the House of Commons and the vote was 386 ayes to 105 noes – an unsurprising result. Consultation will follow as the bill moves to the committee stage.

Change will not happen overnight. The government’s stated intention is as follows: “We expect to begin consulting on these reforms in 2025, seeking significant input from all stakeholders and anticipate this meaning that the majority of reforms will take effect no earlier than 2026.

“Reforms of unfair dismissal will take effect no sooner than autumn 2026”.

That said, you should prepare for change. The Bill itself is 150 pages long and should be read alongside the newly published Next Steps to Make Work Pay document.

What the bill says

Day one rights Several key employment law rights – including the right not to be unfairly dismissed and rights to sick pay and unpaid parental leave – will become ‘day one’ rights.

The statutory probationary period The government will consult on a new statutory probationary period to enable employers to assess the suitability of new hires for light touch dismissal procedures for employers to adopt.

The length of the probationary period or the ‘initial period of employment’ will be the subject of consultation, but the government favours nine months.

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