The Employment Rights Bill represents one of the most significant changes in UK labour law in decades, reshaping unfair dismissal and worker protections under the current Labour government.
After months of debate, amendments, and pressure from businesses and trade unions, the legislation has cleared Parliament and is set to become law. Key reforms include a shift from day-one rights to a six-month qualifying period.
This article examines the bill’s current status, its practical impact on unfair dismissal, and what it means for employers and employees across the UK.
What Is the Employment Rights Bill and Why Is It Significant?
The Employment Rights Bill, which has recently passed its final parliamentary stage and is now awaiting Royal Assent, represents a transformative moment in UK labour law. Described by many as the most comprehensive update in a generation, the bill is a flagship piece of legislation aimed at recalibrating the balance of power between employers and employees.
Its primary objective is to modernise the workplace, offer better protection to workers, and provide clearer, enforceable rights.
Covering a wide range of employment issues, from family leave and flexible working to unfair dismissal and zero-hours contracts, the bill responds to years of campaigning by trade unions, think tanks, and workers’ rights groups.
While it does not extend to Northern Ireland due to devolved legislative powers, the rest of the UK is set to see sweeping reforms by 2026, once secondary legislation is enacted.
What Were the Original Proposals on Unfair Dismissal?
Unfair dismissal was a key point of debate in the Employment Rights Bill. The Labour government initially proposed day-one protection for all employees, replacing the current two-year qualifying period.
Concerns from businesses and analysts over hiring and tribunal impacts led to a compromise: the final bill reduces the qualifying period from 24 months to six months. While this falls short of the original plan, unions have hailed it as a significant win for worker protections.
Comparative Overview: Unfair Dismissal Protection Globally
| Country | Qualifying Period (Months) | Notes |
| UK (pre-Bill) | 24 | Standard protection starts after 2 years |
| UK (post-Bill) | 6 | Applies from April 2026 (subject to secondary legislation) |
| Germany | 6 | Probation periods vary, but protection starts at 6 months |
| France | 0 | Immediate protection with strict employer justification |
| USA | N/A | At-will employment, minimal protection |
| Australia | 12 | Exceptions apply for small businesses |
This change places the UK in line with many European economies while maintaining flexibility through a proposed probationary framework.
Why Did Labour Soften the Unfair Dismissal Clause?
The decision to drop day-one dismissal protection was a politically sensitive compromise. Trade unions had pushed for stronger immediate rights, while business groups raised concerns about potential litigation, hiring disincentives, and tribunal backlogs, particularly for small and medium enterprises.
To address these concerns, the government held cross-sector discussions with unions and employers. The resulting compromise set a six-month qualifying period, providing earlier protection for workers without overburdening employers. Protections for automatically unfair dismissals and discrimination remain effective from day one.
Additionally, the bill includes a clause requiring any future changes to the qualifying period to pass through primary legislation, ensuring long-term stability and predictability for both workers and employers.
What Rights and Protections Will Workers Gain Under the New Law?
The bill introduces a wide-ranging set of reforms, many of which are intended to become effective in phases between 2026 and 2027. These measures aim to improve fairness, dignity, and flexibility in the workplace.
Key Worker Rights Introduced:
- Sick Pay from Day One: All employees will be entitled to statutory sick pay from their first day of work, removing the previous qualifying period.
- Day-One Paternity and Parental Leave: Immediate rights to parental leave, offering better work-life balance.
- Protections for Pregnant Workers: Dismissal within six months of returning from maternity leave will be unlawful, except under clearly defined circumstances.
- Zero-Hours Contract Reform: Workers regularly employed on zero-hours contracts must be offered a guaranteed-hours contract after 12 weeks.
- Flexible Working: Employees can request flexible arrangements by default, not as an exception.
- Bereavement Leave: A new statutory right to bereavement leave from day one.
- Workplace Harassment Protections: Employers must take steps to prevent third-party harassment.
- Equality Action Plans: Employers with over 250 employees may be required to publish gender equality reports.
- Fair Pay Agreements: Sector-specific collective bargaining, starting with adult social care, will be formalised.
These reforms collectively aim to strengthen worker rights, promote fairness and inclusivity, and ensure greater protection and flexibility for employees across all sectors.
How Will the Six-Month Unfair Dismissal Rule Work in Practice?
The introduction of the six-month qualifying period for unfair dismissal marks a critical shift in the UK’s employment landscape. The aim is to offer workers greater job security without exposing employers to immediate legal vulnerability.
Employees reaching the six-month mark in their role will be able to bring unfair dismissal claims to employment tribunals unless the dismissal falls within legally permissible grounds. However, employers will still have a degree of flexibility under a statutory probationary period, which is under consultation.
During this period, employers can assess suitability without facing unfair dismissal claims, provided dismissals are not discriminatory or automatically unfair.
How Tribunal Claims May Be Affected?
| Category | Pre-Bill (2023) | Post-Bill Estimate (2026+) |
| Average Tribunal Claims/Year | 23,000–25,000 | 30,000–35,000 (projected) |
| Claims Resolved Within 6 Months | 62% | 50% (expected drop) |
| Backlog Increase (Estimate) | Moderate | High if additional judges not appointed |
These figures raise concerns about delays, especially if tribunal infrastructure is not strengthened to cope with increased claims.
How Are Employers and Businesses Reacting?
Business reaction to the Employment Rights Bill has been mixed, with concerns over cost, bureaucracy, and hiring flexibility. Many industry bodies warn that the reforms could impose significant financial and administrative burdens, particularly on SMEs. The government’s impact assessment estimates that compliance costs could exceed £5 billion.
Some employers are also worried about increased risks of vexatious claims if the tribunal system remains under-resourced. Uncertainty around the timeline for secondary legislation adds to concerns, leaving businesses unsure how and when to update contracts, policies, and HR procedures.
However, sectors relying on casual or zero-hours labour have welcomed parts of the bill, including clearer scheduling rules. Larger employers are generally better positioned to absorb the changes than smaller businesses.
What Are Trade Unions Saying About the New Protections?
Trade unions have welcomed the Employment Rights Bill as a long-overdue win for workers, though some elements, like the removal of day-one dismissal protections, drew criticism. They argue vulnerable employees need immediate job security to challenge exploitation or unsafe practices.
Nevertheless, unions praised key gains, including expanded facility time for reps, repeals of restrictions on industrial action, stronger strike protections, and greater workplace access, enabling union representatives to support members more effectively.
Union-Pushed Amendments Secured in the Bill:
| Union-Driven Reform | Included in Final Bill |
| Day-One Sick Pay | Yes |
| Guaranteed Hours for Zero-Hour Workers | Yes |
| Ban on Fire and Rehire | Partially restricted |
| Removal of Anti-Strike Laws | Yes |
| Day-One Dismissal Protection | No (replaced by 6 months) |
Overall, unions have committed to continued monitoring and participation in secondary legislation to ensure employer loopholes are closed.
What’s Next? Implementation Timeline and Legal Roadmap
Although the bill has passed through Parliament, most of its provisions require secondary legislation to bring them into effect.
This means further consultations, draft statutory instruments, and code of practice development over the coming months.
Implementation Timeline (Provisional)
| Reform Area | Expected Start Date |
| Sick Pay, Parental Leave (Day One) | April 2026 |
| Zero-Hours Contract Reform | May–June 2026 |
| Flexible Working | Mid-2026 |
| Six-Month Dismissal Rule | Autumn 2026 |
| Fair Pay Agreements Framework | Late 2026 – Early 2027 |
The Fair Work Agency will oversee implementation, compliance, and enforcement. However, the success of these reforms will depend on the government’s capacity to deliver training, publish clear guidance, and manage tribunal pressures.
What Does This Mean for Employees and Employers in 2026 and Beyond?
The Employment Rights Bill brings both opportunities and challenges. For workers, it offers earlier job protection, improved leave entitlements, and enhanced dignity in the workplace. For employers, it introduces new layers of compliance and risk management.
In practice, businesses may need to review:
- Contracts of employment
- HR policies and grievance procedures
- Disciplinary frameworks
- Hiring and probation practices
Conversely, workers, especially younger, part-time, and casual employees, stand to gain significant stability and legal backing.
Ultimately, the bill marks a pivotal rebalancing of UK employment law. Whether it fosters stronger, more secure workplaces or triggers economic strain will depend largely on how the legislation is implemented, monitored, and adjusted in the months ahead.
Conclusion
The Employment Rights Bill, particularly its revised stance on unfair dismissal, demonstrates the complex negotiations required to modernise UK labour law without undermining economic growth.
While Labour’s original ambitions for day-one protections were diluted, the six-month qualifying period represents a substantial improvement on the status quo, and a step closer to a more equitable workplace.
Both workers and employers must now prepare for a new legal era, one where rights come earlier, responsibilities are clearer, and the stakes are higher for everyone involved.
Frequently Asked Questions
What is the current qualifying period for unfair dismissal in the UK?
As of now, the qualifying period is two years. However, from 2026, the Employment Rights Bill will reduce this period to six months, allowing employees to bring unfair dismissal claims earlier.
Can an employee be dismissed within the six-month qualifying period?
Yes. Employers can dismiss an employee during the probation period (within six months), but not for reasons deemed discriminatory or automatically unfair.
How does this bill affect zero-hours contract workers?
Zero-hours workers who regularly work consistent hours for 12 weeks must be offered contracts reflecting those hours, reducing employment insecurity.
What are the protections for pregnant employees under the new bill?
The bill strengthens protections, making it unlawful to dismiss a woman within six months of her return from maternity leave, except in clearly defined circumstances.
Will the tribunal system be able to handle increased claims?
Concerns exist over the tribunal backlog. Without investment in infrastructure and additional tribunal judges, the system may face delays and increased pressure.
What role do trade unions play under the new legislation?
Trade unions gain stronger rights, including expanded access to workplaces, longer strike ballot validity, and more protection for union reps involved in industrial action.
Are any employment rights still subject to future consultation?
Yes. Many aspects of the bill, including the statutory probation period framework and tribunal process reforms, require further consultation and secondary legislation.
