Employment Rights Bill: August Update – What’s Changed Since July

Last month, we set out the roadmap for the Employment Rights Bill. Since then, a few key details have shifted, and if you’re an employer, you need to keep watch. We have prepared an Employment Rights Bill update for August outlining these changes. The Bill is moving closer to Royal Assent (likely September/October 2025), but some of the fine print has changed in ways that matter.

Employment Rights Bill Update – What’s Changed Since July

• Day-One Unfair Dismissal Rights
Back in July, this looked like a true “day-one” right. The Lords have pushed back, suggesting a six-month qualifying period instead. This is still a huge change from the current two years, just not quite as extreme. For employers, it means the two-year “easy exit” is going, but you may still have some room to manage risk during probation. However, final wording is still to be agreed.

• Fire and Rehire
This started as a supposed blanket ban. It’s now narrower: only certain changes (pay, pensions, working hours, shift length, or holiday entitlement) will trigger automatic unfair dismissal protection. You can’t just push through sweeping contract changes, but not every variation will be caught.

• NDAs
The Bill would stop NDAs from being used to silence staff (or witnesses) about harassment or discrimination. Commercial confidentiality clauses still stand – but blanket gagging clauses on harassment will have to go.

• Bereavement Leave for Miscarriage
Statutory leave for pregnancy loss before 24 weeks is set to become law. What was once “nice to have” will become a legal right.

The Roadmap (Still on Track)

• Autumn 2025: Strikes law repealed, stronger union protections.
• April 2026: Day-one sick pay, paternity leave and unpaid parental leave. Stronger whistleblowing rights. Fair Work Agency launches.
• October 2026: New rules on fire and rehire, mandatory steps to prevent harassment (including from customers/clients), tipping reforms, and tribunal time limits extended from three to six months.
• 2027: The big one – unfair dismissal rights shift to either day one or six months (depending on the final legislation). Plus: zero-hours reforms, miscarriage leave, menopause and gender pay action plans, and regulation of umbrella companies.

What Employers Should Do Now

• Review contracts – remove sick pay waiting days, tidy up NDAs.
• Train managers – dismissals, whistleblowing, harassment: most claims start with line manager mistakes.
• Update policies – bereavement, menopause, flexible working, redundancy.
• Stop leaning on the two-year rule – it’s going. Rethink probation now.

The headlines haven’t shifted much since July, but the small print has. For employers, that is the difference between manageable risk and high-stakes risk. Get ahead now, so you don’t caught out later.

Register for peopleHUB’s upcoming webinar

Claire McGuinness will join peopleHUB’s webinar on Wednesday 10^th September to provide an employment law update on the Employment Rights Bill. Claire will break down what’s coming from Autumn 25 through April 26 and beyond – highlighting what employers need to do now to stay compliant and minimise risk.

You can register for free by clicking here.

To find out more information or to discuss the Employment Rights Bill, please get in contact with our team of experts.

T: 0330 107 1037

E: contact@hpc.uk.com

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