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The UK Employment Rights Bill, set to take effect in March 2025, marks a major shift in workplace rights and employer responsibilities. If you’re an employee, expect stronger protections, better job security, and new rights from day one. If you’re an employer, now is the time to prepare, because this bill brings big changes to contracts, hiring, and worker protections. From wage transparency to flexible working and maternity rights, this bill is reshaping the future of work. Let’s break it down so both employees and employers know what’s coming and how to adapt.

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What’s in the new employment bill? Key changes you need to know

1. Day-one rights against unfair dismissal

Previously, employees needed two years of service before they could claim unfair dismissal. Under the new law, protections start from the first day on the job. This levels the playing field for workers, making job security a right—not a privilege.

👉 What this means for employees: More confidence in job security.
👉 What this means for employers: Hiring decisions will carry more long-term weight, so onboarding processes must be thorough.

2. Ban on exploitative zero-hours contracts

If you’ve ever been stuck in the uncertainty of zero-hours contracts, you’re not alone. The new Working for Workers Act (Bill 27) ensures contracts match actual hours worked. This is a huge win for job stability, especially for agency and gig workers.

👉 For employees: No more unpredictable work schedules—contracts must reflect reality.
👉 For employers: A need to shift towards fairer, more structured employment contracts.

3. Strengthened pregnancy and maternity discrimination protections

Pregnant workers and new parents often face unfair treatment in the workplace. The Pregnancy and Maternity Discrimination Bill strengthens protections, making it illegal to dismiss or demote employees due to pregnancy or maternity leave.

👉 For employees: You are protected before, during, and after maternity leave.
👉 For employers: Policies around pregnancy discrimination and return-to-work processes must be updated.

4. New flexible working rights

Flexible work is no longer a perk, it’s a right. The New Flexible Working Bill gives employees the power to request flexible hours or remote work from their first day. Employers must now provide a valid reason if they deny such requests.

👉 For employees: Greater control over your work-life balance.
👉 For employers: Adjusting business models to accommodate a hybrid and remote workforce.

5. Wage Transparency Act: Closing the pay gap

The Wage Transparency Act is set to revolutionise salary disclosures. Employers must now publish salary ranges in job ads and provide clearer information on pay structures and gender pay gaps.

👉 For employees: More visibility into what your job is really worth.
👉 For employers: Transparency could improve hiring trust and workforce diversity.

6. SB 1162 reporting requirements: the future of pay data

The UK is following the lead of SB 1162, a US law that requires companies to report salary data, broken down by gender and race. The new UK employment bill will require large employers to report pay equity data, helping to tackle pay gaps across industries.

👉 For employees: Know if you’re being paid fairly.
👉 For employers: Compliance will require better record-keeping and fair pay structures.

7. Strengthening trade union rights

The bill simplifies trade union recognition, making it easier for workers to organise and take industrial action. With increased union support, workers can push for fairer contracts, better pay, and safer working conditions.

👉 For employees: A stronger voice in workplace negotiations.
👉 For employers: Expect a rise in collective bargaining and the need for open dialogue with workers.

8. The end of 'fire and rehire' tactics

Some employers have used “fire and rehire” to force staff onto worse contracts. This loophole is closing. The bill bans dismissing employees just to rehire them under less favorable terms.

👉 For employees: No more sudden contract changes that leave you worse off.
👉 For employers: Clearer, fairer negotiation processes are now a must.

What employers need to do next

1

Review employment contracts

Ensure all agreements reflect the new legal protections.
2

Update HR policies

Especially around maternity leave, flexible work, and salary transparency.
3

Prepare for fair pay reporting

Salary disclosures are not optional anymore.
4

Train managers

They need to understand new employee rights to avoid disputes.
5

Engage with employees

Transparent communication will be key to a smooth transition.

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What employees should know

The Employment Rights Bill 2025 is a win for workers. But to benefit, you need to know your rights. Here’s what you should do:

Find out how to request flexible working that employers will actually accept

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Looking ahead: What's next for UK employment law?

The Labour Bill 2022 and the New Employment Equity Bill paved the way for these reforms, but there’s more to come. Future updates could include:

AI in the workplace

New regulations on algorithmic hiring and surveillance.

Stronger protections for gig workers

Freelancers may gain more employee rights.

Expanding parental leave:

Calls for longer and better-paid leave policies are growing.

Join the ivee community!

Join our Facebook group. Whether you’re looking to reconnect with like-minded returners, seek advice on returning to work after maternity leave, or share your experiences, our Facebook community is here to help you navigate your journey back into the workforce.

You’ll find:

👉 Latest regulatory changes regarding maternity leave

👉 CV templates for women returning to work

👉 Latest industry updates

👉 Resources and guides to help you on your job hunt

👉 Confidence-building events, webinars and advice on all aspects of returning to work

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Final thoughts: a more fair and flexible future

The March 2025 Employment Bill isn’t just a legal update. It’s a shift towards fairer, more transparent, and more flexible workplaces. Whether you’re an employee or an employer, change is coming.

At ivee, we believe that better work policies create better opportunities for everyone. If you’re navigating the new employment landscape, now is the time to educate yourself, prepare, and embrace the future of work.

Let’s build a workplace culture that works for everyone.

Find out how to request flexible working that employers will actually accept

Explore our examples and templates
Find out more