Employment Rights Bill Becomes Law
18.12.2025
The Employment Rights Bill has today received royal assent - therefore becoming law - following a period of debate and compromise, including the removal of day 1 protections against unfair dismissal - a key win for Make UK members.
The new law is set to bring a raft of changes to the employment and HR landscape for businesses in the UK. Including:
- An end to 'exploitative' zero-hours contracts
- An end to ‘fire and rehire’ and ‘fire and replace’ practices
- ‘Day 1’ rights to paternity leave, unpaid parental and bereavement leave
- Enhanced protections against dismissal for pregnant women and new mothers
- Strengthened collective redundancy rights
- Strengthened Statutory Sick Pay by removing the lower earnings limit and
- Establishment of the Fair Work Agency
Make UK will continue to work with the government and manufacturers on how the reforms are implemented, with changes set to be introduced gradually over a two-year period.
We'll also be on hand to help members navigate the new landscape through a plethora of tools and resources, including our new Employment Rights Act planner.
The Employment Rights Bill receiving Royal Assent marks the end of a long legislative process, but only the beginning of how it will impact the UK’s manufacturing businesses.
"The Government’s recent change to allow a six-month qualifying period for protection from unfair dismissal means that this legislation works better for businesses than when it was first drafted over a year ago. However, there remain a number of challenges ahead for industry and the Government in implementing new measures.
"In critical areas such as the right to guaranteed hours and trade union reforms, key policy details are still yet to be decided. The opportunity to engage in consultation is crucial to retain the right flexibility and minimise disruption for employers. It is also vital that – given the Act has taken longer than expected to pass through Parliament – the timing for implementation gives businesses enough time to prepare for the changes to take effect.
"Manufacturing is a sector providing secure, well-paid and highly-skilled jobs across the country. We look forward to continuing to work with the Government on implementing the Employment Rights Act to ensure that it works for businesses and enables manufacturers to recruit and retain the people they need.
