The Employment Rights Bill has finally been passed, after significant delays due to opposition from the House of Lords.

Agreement was finally achieved earlier this week after almost a year and most changes are scheduled to take effect in 2026 or 2027, according to the government’s roadmap.

While many of the key components of the Bill remain, the government has made some significant concessions on a range of topics such as introducing a six-months’ qualifying period for unfair dismissals, collective redundancy thresholds, and softening fire and rehire provisions.

A surprise late stage addition to completely remove the cap for unfair dismissal compensation awards has also been included. The government has said that it will publish an impact assessment on this before implementing the unfair dismissal sections of the Act.

Next Steps

While employers will be relieved that the deadlock has ended and that the passing of this Bill provides more clarity on what is to come, most of the measures will require secondary legislation before coming into force. A number of consultations will also be carried out.

Now we know for sure that change is coming, bringing employees new rights and employers new responsibilities, now’s the time to protect your business with practical steps. Start by reviewing your contracts, policies and people processes.

Here to Help

WorkSmarter is helping customers prepare for what lies ahead. Our suite of online HR tools makes it easy to stay compliant with changing legislation.

To assist SMEs navigate employment law and compliance issues, WorkSmarter’s HR Partners can offer customers expert, bespoke advice and guidance in relation to their specific business. Get in touch.