The UK government’s proposed Employment Rights Bill is moving through Parliament – and it could bring some of the biggest changes to employment law in a generation. Think day-one protection against unfair dismissal, tighter rules on zero-hours contracts, and more flexible working by default.

For in-house lawyers, this means one thing: now’s the time to get across the key details, pressure-test your contracts, and start aligning with what’s coming down the track.

Here’s what you need to know.

What’s in the Bill?

The Employment Rights Bill, introduced to Parliament in October 2024, is designed to modernise employment practices and level the playing field for workers across the UK. Headline changes include:

• day-one protection against unfair dismissal – removing the current two-year qualifying period
• flexible working as the default – with new duties on employers to accommodate requests unless there’s a good reason not to
• restrictions on zero-hours contracts – aimed at curbing exploitative practices and promoting predictable work patterns
• stronger harassment protections – requiring proactive measures to prevent discrimination and harassment at work
• a new enforcement body – the Fair Work Agency, to help uphold rights and drive compliance
  

You can explore a full breakdown via the House of Commons briefing or follow the Bill’s progress through Parliament.‍

Where are we in the process?‍

The Bill is already well on its way through the legislative journey:

• 10 October 2024 – introduced in the House of Commons
• 21 October 2024 – second reading
• 26 November 2024 to 16 January 2025 – detailed scrutiny in Public Bill Committee
• 11–12 March 2025 – passed Commons after Report Stage and Third Reading
• 27 March 2025 – second reading in the House of Lords
• Late 2025 (expected) – Royal Assent
• From 2026 – phased implementation expected across key provisions‍

What in-house lawyers should be doing now‍

The changes may not bite until 2026, but that doesn’t mean you should wait. This is the time to:

• review contracts and handbooks – especially dismissal clauses, flexible working provisions, and zero-hours arrangements
• update internal policies – make sure HR and line managers are aligned with what’s coming
• get on top of training – particularly around harassment prevention and fair dismissal processes
• assess your risk profile – think about how these reforms might affect tribunal exposure, recruitment models, or labour costs
• stay engaged with updates – this is a live Bill, and further amendments could still come through the Lords‍

The business impact‍

While the reforms aim to protect workers, they’ve prompted pushback from some business groups, with estimates that they could cost employers up to £5 billion a year. For in-house lawyers, that makes it all the more important to strike the right balance between compliance and commercial impact.