Introduction: The Waiting Game Continues
For months, the UK business community has been bracing for what the government termed the “biggest upgrade to workers’ rights in a generation.” The Employment Rights Bill, the flagship legislation underpinning the “Make Work Pay” plan, was introduced with significant fanfare and a promise to hit the ground running. Yet, as we sit here in November 2025, the rapid pace of reform has hit a legislative speed bump.
As a solicitor advising clients daily on how to prepare for these seismic shifts, I am increasingly asked: “Is it actually happening?” and “When do these rules apply?”
The short answer is: Yes, it is happening, but the timeline has stretched. The Bill is currently caught in the parliamentary phenomenon known as “ping-pong”—bouncing between the House of Commons and the House of Lords. While this stalling might feel like a reprieve for weary HR departments, it is essentially the calm before a very significant storm. The delay is not a cancellation; it is a complication.
In this update, I want to cut through the political noise and offer a legal perspective on where the Bill stands, why it has stalled, and—crucially—why you cannot afford to press pause on your preparations.
The “Ping-Pong” Stage: What is Stalling the Bill?
To understand the delay, we have to look at the mechanism of passing laws. The Bill sailed through the Commons but faced scrutiny in the House of Lords. The Lords, often seen as the revising chamber, returned the Bill with several amendments that fundamentally clashed with the government’s original manifesto pledges.
The most contentious issue—and the primary cause of the current deadlock—is unfair dismissal protection.
The government’s original proposal was bold: unfair dismissal protection would become a “day one” right. This would scrap the current two-year qualifying period, replacing it with a statutory probationary period (likely nine months) during which a “lighter touch” dismissal process could apply.
However, the House of Lords introduced an amendment seeking to impose a definitive six-month qualifying period before full unfair dismissal rights kick in. On November 5th, the House of Commons rejected this amendment, sticking to their guns on the “day one” principle. This disagreement has forced the Bill back to the Lords, delaying Royal Assent.
From a legal standpoint, this is significant. The government is determined to avoid a watered-down version of “day one rights,” viewing it as a non-negotiable pillar of their mandate. For employers, this legislative tug-of-war creates uncertainty. Will we see a compromise? Likely not on the principle itself, but potentially on the mechanics of the statutory probation period.
The Core Reforms: A Solicitor’s Analysis
While the headlines focus on the stall, the substance of the Bill remains largely intact. Regardless of when the final seal of Royal Assent is stamped (likely late 2025 now, with implementation in 2026), the destination is clear. Here is a breakdown of the key legal risks and changes you need to anticipate.
1. Unfair Dismissal and the New Probation
If the government prevails (which they likely will, given their Commons majority), the two-year safety net for employers will vanish.
- The Legal Implication: You will no longer have the luxury of a “wait and see” approach with new hires. Currently, many employers let performance issues drift for 18 months before acting. Under the new regime, if a hire isn’t working, you must identify and address it within the statutory probation period (expected to be 9 months).
- My Advice: Review your probation clauses now. Are they robust? do they grant you the contractual right to extend? More importantly, are your line managers trained to have difficult conversations in month two or three, rather than month twenty-three?
2. Zero-Hours Contracts and “Guaranteed Hours”
The Bill aims to end “exploitative” zero-hours contracts. Workers who regularly work defined hours over a reference period (likely 12 weeks) will be entitled to a guaranteed hours contract reflecting that reality.
- The Legal Implication: This is not a total ban on zero-hours contracts, but it is a ban on permanent zero-hours arrangements for regular staff. If you rely on a flexible workforce that essentially works full-time hours, your contracts will need to change by operation of law.
- My Advice: Audit your workforce. Identify “casual” workers who have established a regular pattern. The cost implications of moving them to guaranteed contracts—including holiday pay and notice rights—must be factored into your 2026 budget.
3. Fire and Rehire
The practice of “fire and rehire” (dismissal and re-engagement on inferior terms) will be severely restricted. It will be automatically unfair to dismiss an employee for refusing a contract variation unless the employer can prove extreme financial distress—essentially, that the business would collapse otherwise.
- The Legal Implication: This is a high bar. Standard “restructuring for efficiency” or “harmonising terms” will no longer justify fire and rehire.
- My Advice: If you are planning significant changes to terms and conditions, you need to act with extreme caution. Consensual variation is now your only safe route, which places a premium on employee relations and negotiation strategy.
4. Statutory Sick Pay (SSP)
The Bill removes the three-day waiting period and the Lower Earnings Limit for SSP.
- The Legal Implication: SSP becomes a day-one right for all employees, regardless of earnings.
- My Advice: This is primarily a cost and administrative change. Ensure your payroll systems are ready to process sickness absence from day one. You may also need to review your absence management policies to ensure that “duvet days” do not become a pattern, as the financial barrier to taking a single sick day is being removed.
5. Harassment: The Prevention Duty
Perhaps the most immediate risk for employers is the new duty to take “all reasonable steps” to prevent sexual harassment. This includes liability for harassment by third parties (clients, customers, suppliers).
- The Legal Implication: This shifts the legal burden from reacting to harassment to preventing it. If a tribunal finds you failed to take reasonable steps, compensation can be uplifted by up to 25%.
- My Advice: A policy in a handbook is no longer a sufficient defence. You need risk assessments, active training, and clear reporting lines. If your staff interact with the public, you need protocols for handling abusive customers.
Timelines: When Will This Bite?
This is the million-pound question.
- Royal Assent: Likely late 2025 or very early 2026, pending the resolution of the “ping-pong” stage.
- Implementation: The government has indicated that the majority of these reforms will not take effect until 2026, and potentially Autumn 2026 for the complex unfair dismissal changes.
This delay is a double-edged sword. It prolongs the uncertainty, but it gives wise employers a grace period.
The Solicitor’s Verdict: Don’t Let the Stall Lull You
It is easy to read “Bill Stalls” and think “I can ignore this for six months.” That would be a strategic error. The direction of travel is set. The concept of “flexible” employment is being re-regulated to favour security.
The employers who will suffer most when this Bill lands are those who rely on informal practices, loose contracts, and the ability to dismiss easily.
Your Action Plan for the “Stall” Period:
- Audit Contracts: specifically for exclusivity clauses, probation periods, and variation terms.
- Train Managers: They are your first line of defence. They need to understand that “probation” is not just a word, but a critical assessment window.
- Assess Culture: With the new harassment duties, a toxic workplace is now a massive financial liability.
- Consult: If you have a recognised union, engage early. If you don’t, expect the new trade union access rights to make unionisation easier.
The Employment Rights Bill is not going away. It is simply taking a breath. Use this time to ensure your business is ready when it exhales.
