After a protracted passage through Parliament and an array of amendments, the Employment Rights Bill is to become law. Here we set out some of the key changes the legislation will bring to the employment law landscape, and how they differ from the initial proposals.
The Employment Rights Bill has completed its passage through Parliament, clearing the House of Lords on 16 December 2025, and entering the final formalities before it becomes law. The Bill is expected to receive royal assent today, Thursday 18 December 2025, at which point it will become the Employment Rights Act 2025. Most measures are to be phased in across 2026 and 2027 rather than taking effect immediately.
The passing of the Bill comes after a prolonged period of “ping-pong” between the Houses, with pressure from the House of Lords to water down the proposals leading to a number of last-minute concessions. These included dropping day one unfair dismissal rights in order to secure passage of the Bill before Christmas.
Notwithstanding these changes, the passing of the Bill heralds the most significant change to individual employment rights in a generation. Below we set out some of the most important provisions, each of which have been the subject of much debate in Parliament, and outline where the finalised legislation lands in comparison to the Government’s initial proposals.
The headline change is the abandonment of the...
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