Employment Rights Bill – what’s changed?

The Employment Rights Bill continues to evolve, with the Government introducing a series of amendments that reshape key aspects of the legislation.

What’s the headline?

Employers have more time to prepare. Most major reforms won’t take effect until at least 2026.

However, the Bill’s core purpose remains unchanged: to strengthen worker protections. In some areas, the latest amendments go further than originally proposed.

Below, we outline the most recent and impactful changes for employers.

Fire and rehire: Softer but still significant shift

The Bill’s original proposal to ban “fire and rehire” practices outright has been revised. Employers can still make contractual changes, but only if they don’t fall under the category of “restricted variations.”

What counts as restricted?

Changes that reduce pay, alter performance-based pay, affect pensions, change working hours or shifts, or reduce time off. These are now subject to strict scrutiny and may trigger automatic unfair dismissal claims if not handled correctly.

What’s allowed?

Variations to duties or place of work are not automatically unfair, but tribunals will assess fairness based on consultation, incentives offered, and the employer’s rationale.

Public sector employers now have tailored exceptions.

Key takeaway

Once the Bill becomes law, employers considering changes to contracts must tread carefully to avoid automatic unfair dismissal.

NDAs will be banned in discrimination and harassment cases

A major amendment now renders non-disclosure agreements (NDAs) void if they attempt to prevent disclosures about harassment or discrimination.

What’s covered:

• Allegations of direct or indirect discrimination, and discrimination arising from disability
• Disclosures about how employers respond to such allegations
• Applies to all agreements, including employment contracts and settlement agreements

What’s not covered (yet)?

Victimisation and failure to make reasonable adjustments, but future regulations may expand the scope.

Implications:

Settlement agreements may no longer guarantee confidentiality. Employers may need to prepare for more open resolution processes and consider reputational risk management strategies.

The potential implications are explored further here – What’s the secret? Exploring the potential effects of the proposed NDA ban | Anderson Strathern

Bereavement Leave: Expanded entitlements

The Bill now includes a right to bereavement leave for employees who suffer pregnancy loss before 24 weeks, including miscarriage, ectopic pregnancy, and failed IVF transfers.

Why it matters

This change recognises the emotional impact of early pregnancy loss and ensures affected employees are entitled to time off, regardless of pregnancy stage.

What’s next?

Royal Assent is expected in autumn 2025, with phased implementation beginning in April 2026 and continuing into 2027. Key predicted milestones include:

• April 2026: Day 1 paternity leave, whistleblowing protections, and the establishment of the Fair Work Agency
• October 2026: Stronger harassment protections, fair pay regulations, and tribunal time limit extensions
• 2027: Gender pay gap and menopause action plans, enhanced dismissal protections for pregnant women, and improved access to flexible working

Strategic planning for employers

While the employment legal landscape is still shifting, employers should begin strategic planning now. Whatever changes are made, the Employment Rights Bill represents a fundamental shift in employer obligations.

For some, making major contractual changes before the Bill is finalised won’t be necessary—and could even be counterproductive. But with these further changes, employers should, at the very least:

• Prepare for increased scrutiny of NDAs
• Consider the impact of bereavement leave on staffing models
• Stay informed about the Bill’s timelines and implementation phases

How we can help

Anderson Strathern offers tailored templates, risk assessment tools, and strategic advice to help businesses navigate these changes. If you would like support or more information on anything mentioned please contact Robin Turnbull (robin.turnbull@andersonstrathern.co.uk) or a member of our Employment team for guidance.