From unfair dismissal to zero-hour contracts, Mariam Zaadane from local solicitors Edwards Duthie Shamash explains some of the key proposed reforms in the Employment Rights Bill
The Employment Rights Bill is a significant piece of legislation designed to create a fairer, more equitable workplace. It seeks to address key issues within the employment law landscape. As part of the government’s broader ‘Plan to Make Work Pay,’ the Bill is designed to enhance worker protections, boost living standards and support economic growth. As of 1 July 2025, the Employment Rights Bill has undergone significant revision to strengthen workers’ rights, and has recently completed its committee stage in the House of Lords.
Unfair dismissal
From autumn 2026, employees will be entitled to unfair dismissal protection from ‘day one’ of employment, removing the current two-year qualifying period. Alongside this, statutory probationary periods will be introduced, allowing employers to terminate employment or issue up to three months’ notice during this initial phase. These changes mark a significant shift in employee rights, meaning more workers will likely challenge their dismissal. As a result, it will be essential for employers to include clear probation terms in employment contracts. Employers must also review their existing disciplinary and dismissal procedures, ensuring HR professionals and managers are fully trained to manage performance concerns in line with the new legal framework.
Fire and rehire
From October 2026, employers will lose the ability to dismiss staff who refuse contractual changes. Any attempt to alter terms and conditions will require clear justification. With fewer options to enforce changes, some employers may turn to redundancies instead. Dismissing an employee to replace them or rehire them on new terms will also be classed as automatically unfair, unless there is a clear justification. To prepare, employers should prioritise drafting employment contracts that offer maximum flexibility from the outset.
Protections against zero-hour contracts
From 2027, workers on zero-hour contracts will be entitled to greater job security. If a casual worker regularly works more hours over a 12-week reference period, they will have the right to request a contract that reflects those established hours. Employers will be required to consider this request reasonably. Although zero-hour contracts will remain legal, these reforms aim to ensure casual workers with regular patterns are not left in uncertainty. In addition, workers must be given reasonable notice of their shifts. If a shift is cancelled or changed at short notice, the worker will be entitled to compensation. What counts as “reasonable notice” is still under discussion. These changes will require employers to monitor casual work arrangements closely and identify when a worker becomes eligible for a regular contract.
Edwards Duthie Shamash is located at 149 High Street, Wanstead, E11 2RL. For more information, call 020 8514 9000 or visit edwardsduthieshamash.co.uk
