UK parliament ushers in holidays with passage of landmark Employment Rights Bill

Prime minister Keir Starmer described it as “the biggest upgrade to workers' rights in a generation”

UK parliament ushers in holidays with passage of landmark Employment Rights Bill
By Jacqueline So
Dec 18, 2025 / Share

The UK parliament has passed the Employment Rights Bill – a move that prime minister Keir Starmer described as a significant win for all workers in England, Scotland, and Wales according to BBC.

A key provision in the bill cuts the qualifying period for unfair dismissal from two years down to six months. The termination of employees who are pregnant or have just returned from maternity leave will fall under unfair dismissal except in certain cases.

Restrictions on unfair dismissal compensation have also been lifted, per a Hogan Lovells article.

“We have just introduced the biggest upgrade to workers' rights in a generation... Today our plans passed through parliament, and will soon become law,” Starmer said in a statement published by BBC.

Workers will be able to take paternity leave and unpaid parental leave starting from the first day of employment as of April 2026. In 2027, employees will be entitled to unpaid bereavement leave if a relative dies.

The bill also imposes on employers the duty to take all reasonable steps to prevent sexual harassment in the workplace as of October 2026, which Hogan Lovells described as a “core change” in its article. It also reinstates protection against harassment by third parties like customers or suppliers.

Employers must develop equality action plans that include measures to tackle gender pay gaps and support for menopausal employees in 2027.

The bill also clamps down on zero-hour contracts, requiring employers to offer guaranteed hours contracts following an initial reference period and each reference period after. This provision applies to zero or low hour workers and agency workers alike.

Trade unions will be granted the right to access workplaces both virtually and in person to recruit and act for union members. Effective October 2026, employers must also inform employees of their ability to join unions and detail the employee protections applicable to union members and activities.

The employee rights package was first introduced to parliament in October 2024. Unite union general secretary Sharon Graham called for the bill’s quick implementation.

“Labour need now to stop being embarrassed by these new laws for workers. The bill had already been watered far too much, not least the failure to ban fire and rehire and zero hours contracts,” Graham said in a statement published by BBC.

The bill is set to receive royal assent this week. However, most measures may only take effect with secondary legislation.

The Employment Rights Bill will not apply to Northern Ireland.

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