Employment Rights Bill: A Landmark Change

Angela West, Director of Employment Law at JCP Solicitors, explains the latest updates to the Employment Rights Bill.

The Employment Rights Bill has been discussed in the House of Commons and the House of Lords since October 2024, and is expected to become law before the end of 2025. Its new regulations will come into force in 2026 and 2027.

The Bill will bring about landmark changes to Employment Law, strengthening employee rights. There has been much debate and discussion about the proposal which was introduced by the Bill which would bring in ‘Day One Rights’, meaning employees would be able to claim unfair dismissal from their first day with a new company.

This raised concerns within the sector, with many employers questioning how this would work in practice: although it would be a positive for many employees, it brought in incredibly high levels of risk for the hiring process.

Due to these concerns, the Confederation of British Industry (CBI) raised their voice. Following engagement with their members, businesses, and the Government, the CBI recently announced that they have successfully lobbied to change the minimum service levels required for unfair dismissal as part of the Bill.

The present position is that an employee will need to have continuous service of 2 years in order to have protection against ordinary unfair dismissal. The Employment Rights Bill will bring down the qualifying period for ordinary unfair dismissal from two years to six months.

This goes some way to reduce the previous concerns voiced by many employers about hiring risk, while still offering enhanced protection for employees. At JCP Solicitors, we welcome this change to the Bill.

To find out how the Employment Rights Bill could impact your business, get in touch with our expert team today. Contact Angela West, Director of Employment Law, on 01792 529631 or email angela.west@jcpsolicitors.co.uk.