A landmark piece of legislation heralded as the most significant boost to workers' protections in a generation has cleared its final parliamentary hurdle, setting the stage for new laws to take effect next spring.
What the New Employment Rights Bill Includes
The Employment Rights Bill successfully passed the House of Lords on Tuesday the 16th of December 2025, after being held up by Conservative and Liberal Democrat peers. This paves the way for it to receive royal assent, with the sweeping reforms expected to come into force from April.
Prime Minister Keir Starmer hailed the moment, stating, "We did it. We have just introduced the biggest upgrade to workers’ rights in a generation." He called it a major victory for working people across the nation.
The legislation, spearheaded by former Deputy Prime Minister Angela Rayner, introduces a suite of transformative measures designed to end exploitative practices. Business Secretary Peter Kyle said it would "drag Britain's outdated employment laws into the 21st century."
Core Reforms and Protections
The Bill's key provisions represent a fundamental shift in UK employment law. Among the most impactful changes are:
- Day One Rights to Statutory Sick Pay: Removing waiting periods, ensuring immediate coverage for ill workers.
- Ban on Exploitative Zero Hours Contracts: Introducing a right to guaranteed hours, reasonable notice of shifts, and compensation for last-minute cancellations.
- End to 'Fire and Rehire': Outlawing the practice where employers dismiss staff only to re-engage them on inferior terms.
- Repeal of Tory Anti-Strike Laws: Rolling back previous legislation restricting industrial action.
- New Unpaid Bereavement Leave: Including provision for pregnancy loss, allowing workers time to grieve.
Reaction from Unions and Analysis
Trade unions, which campaigned vigorously for the reforms, celebrated the Bill's passage. TUC General Secretary Paul Nowak described it as an "historic day and early Christmas present for working people." He stressed the urgency of implementing the laws swiftly and robustly to prevent bad-faith employers from finding loopholes.
Christina McAnea, General Secretary of Unison, which helped shape the Bill, argued that good employers have nothing to fear. She emphasised that the legislation begins to rebalance power away from employers and towards staff, ending an era where loopholes could be easily exploited.
The Bill's progression coincides with concerning new research highlighting the rise of insecure work. A study by the Demos think-tank and the Joseph Rowntree Foundation, analysing over 30,000 online posts, found people are increasingly turning to precarious jobs in the gig economy to make ends meet. These roles often feature uncertain hours, unpredictable pay, and high emotional demands.
Polly Curtis, CEO of Demos, warned that official unemployment figures—which rose to 5.1% in the three months to October—may not capture the full extent of financial vulnerability. The report calls for the government to officially track the number of insecure "Limb workers" and explore extending parental leave to them.
With royal assent now a formality, millions of UK workers are set to gain stronger rights and greater dignity at work from April, marking what the Labour government considers a historic reset of the employment landscape.
