9 all-important FAQs on the Employment Rights Bill

From what it is, to when it's expected to come into force, to changes to sick pay and redundancy; we've answered the key question on the Employment Right Bill here.

The Employment Rights Bill is changing a number of things, especially for those working in the retail sector. But what are the key things independent retailers need to know?

We've put together 9 commonly asked questions and answered them in bitesize chunks, with the help of legal experts and Bira Legal partner WorkNest, getting straight to the point for small businesses that need a quick breakdown.

• What is the Employment Rights Bill 2025?
• When will the changes from the Employment Rights Bill take effect?
• How does the Bill affect unfair dismissal claims?
• What changes are being made to zero-hours contracts?
• How is Statutory Sick Pay (SSP) affected by the new legislation?
• What new rights do parents have under the Bill?
• How does the Bill address workplace harassment?
• Will there be changes to redundancy consultation processes?
• How should retailers prepare for these changes?

1.  What is the Employment Rights Bill 2025?

The Employment Rights Bill 2025 is legislation introduced by the Labour Government aiming to enhance worker protections, improve job security, and reform various aspects of employment law in the UK.

2.  When will the changes from the Employment Rights Bill take effect?

While the Bill is progressing through Parliament, many of its provisions are expected to come into force later in 2025. However, these changes will be implemented gradually. Notably, the significant amendment to unfair dismissal rights are not anticipated until at least Autumn 2026. Retailers should keep abreast of the Bill’s progress to ensure timely compliance.

3.  How does the Bill affect unfair dismissal claims?

The Bill proposes granting employees protection against unfair dismissal from the first day of employment, removing the previous two-year qualifying period. This change means retailers must ensure fair procedures are followed for all employees, regardless of tenure. Short service dismissals will still be possible in an Initial Period of Employment (anticipated to be 9 months, but to be confirmed). A fair reason for dismissal will be needed in the “Initial Period of Employment”(IPE), but only for conduct/performance/illegality or SOSR (not relating to terms and conditions) – not redundancy. Retailers are also expected to be able to follow a light-touch process in this IPE to dismiss, which could include at least a meeting with the employee to address concerns and the right to be accompanied prior to dismissal.

4.  What changes are being made to zero-hours contracts?

The Bill seeks to ban ‘exploitative’ zero-hours contracts and introduces the right for workers to be offered a contract with guaranteed hours that reflect their usual working patterns and to implement penalties to employers for late changes or shifts being curtailed. The Bill aims to provide more stability for workers and will require retailers to adjust staffing arrangements.

5.  How is Statutory Sick Pay (SSP) affected by the new legislation?