Employment Rights Bill 2025
Key Reforms, Timelines and Implications for Practice
The Employment Rights Bill 2025 is set to be the most significant overhaul of UK employment law in over two decades. With its anticipated passage later this year, the legislation will introduce comprehensive reforms that reshape workplace practices across England, Scotland and Wales. For businesses, HR teams and leaders, this isn’t just about compliance - it’s about fostering a culture where employees feel secure, supported and valued.
At MOCO Coaching, we have seen firsthand how changes in employment rights intersect with employee wellbeing. As workplaces adapt to new legal frameworks, supporting people through transitions - whether returning from parental leave, illness or other life changes - is more important than ever.
Key Reforms in the Employment Rights Bill
1. Day-One Employment Rights
Employees will now be protected against unfair dismissal from their very first day of work, replacing the current two-year qualifying period. For businesses, this means reviewing induction processes and ensuring that new starters feel supported and confident from the outset.
2. Enhanced Sick Pay Provisions
Statutory Sick Pay (SSP) will be paid from day one of illness, with the lower earnings limit removed. Employees will have greater security, but businesses will need clear policies and compassionate communication to help teams navigate absence.
3. Expansion of Family Leave
Parental leave and paternity leave become day-one rights and restrictions on shared parental leave are likely to be removed. Supporting employees in this transition - balancing work and new caregiving responsibilities - aligns directly with MOCO’s expertise in helping returners regain confidence and clarity.
4. Protection Against Workplace Harassment
Employers are expected to take “all reasonable steps” to prevent harassment, including liability for incidents involving third parties. Creating safe, supportive environments will be critical.
5. Reforms to Zero-Hours Contracts
The Bill introduces guarantees of minimum hours for workers on variable contracts.
Implementation Timeline
Autumn 2025: Initial reforms, including unfair dismissal protections and sick pay provisions.
April 2026: Establishment of the Fair Work Agency and whistleblowing protections for harassment.
October 2026: Strengthened trade union rights and regulation of tipping practices.
2027: Major changes, including day-one unfair dismissal claims and expanded flexible working rights.
What This Means for Businesses
The Employment Rights Bill 2025 is more than legal compliance - it is a call to action for businesses to prioritise people. Key implications include:
Proactive HR Planning: Policies, contracts and procedures must be updated to reflect new rights.
Manager Training: Leaders need the skills to support employees through transitions, flexible working and leave entitlements.
Employee Wellbeing Support: Employees may face uncertainty or challenges as these changes take effect - coaching, mentoring and wellbeing programmes can help them thrive.
Retention and Engagement: Supporting employees during life changes, illness or parental leave boosts loyalty, reduces turnover and strengthens workplace culture.
At MOCO Coaching, we specialise in helping businesses navigate these kinds of transitions. From 1:1 coaching for returning employees, to workshops and wellbeing programmes, we help organisations ensure employees feel supported, confident and ready to succeed.
Conclusion
The Employment Rights Bill 2025 represents a transformative shift in UK employment law, with an attempt at creating fairer, safer and more supportive workplaces.
At MOCO Coaching, we know that legal compliance and employee wellbeing go hand in hand. By combining robust HR practices with compassionate, evidence-based coaching, businesses can ensure every employee feels supported, confident and engaged - turning workplace transitions into opportunities for growth and retention.
✨ If your organisation is preparing for these changes and wants to support your people through life and work transitions, MOCO Coaching can help. Let’s explore how we can make your workplace a place where everyone can thrive.