
The UK government has confirmed that some major parts of its Employment Rights Bill — a key part of its “New Deal for Working People” — will now be delayed as part of a new roadmap designed to give businesses more time to prepare, while still delivering stronger protections for workers.
“The phased timeline is a pragmatic response to business concerns—but let’s be clear: it’s not a reason to hit pause. These reforms are still on track, and employers who wait risk falling behind. The smartest approach is to start laying the groundwork now. Two years may sound like a long time, but from a legal and operational standpoint, it’s tomorrow.”
—Antony O’Loughlin, General Counsel, Setfords

So what’s changing, and what does it mean for employers and employees?
What’s Been Delayed?
Labour originally promised to introduce the Employment Rights Bill within 100 days of entering government, with the new rights being implemented immediately. However, due to pushback from businesses and employer groups, the rollout is now being phased.
Key aspects of the Bill that are likely to be delayed include:
- Unfair dismissal rights from day one: These will now be introduced after a formal consultation and are expected to apply from 2027, following the creation of a new statutory probation period.
- A ban on zero-hours contracts: This will likely be introduced in 2027, after consultations to define what counts as a “genuine” flexible contract.
- Guaranteed flexible working: This measure, aimed at flexibility being the default position for employment, will also likely not come into force until later than expected.
What’s Still Going Ahead Soon?
Some less complex reforms are still moving forward with the expectation they will come into force in 2026. These include:
- Removing current limits on statutory sick leave
- New whistleblowing protections
- Day-one paternity leave rights
- Day-one unpaid parental leave rights
- The end of fire and rehire practices
- Changes to tipping laws, aimed at allocating tips more fairly
What Does This Mean for Employers?
More Time, But Not a Free Pass
The government has softened the pace, but the direction of travel is clear: stronger worker protections are coming, and businesses must be prepared.
Employers should:
- Start planning now: Review contracts, policies, and handbooks to make sure they will reflect the changes when the time comes.
- Use the time wisely: Update systems for handling flexible working, leave, sick pay, and performance management.
- Prepare for cultural change: These reforms aim to shift workplace norms. Proactive engagement from employers will go further than reactive compliance.
What Does This Mean for Employees?
Gradual Protection, Not Immediate
Workers won’t gain automatic unfair dismissal rights from day one until at least 2027, which means the current two-year qualifying period still applies for now.
However, rights like:
- Flexible working
- Paternity leave
- Parental and bereavement leave
- Stronger sick pay rules
Are still on track to become available sooner, offering better security and support from earlier in employment.
Furthermore, union recognition and access are still set to expand, potentially giving employees more collective bargaining power in the workplace.
Need help preparing your business for these changes? Our employment law experts are here to guide you through what to do now, what to plan for later, and how to stay compliant every step of the way. Get in touch to discuss your needs.