Employment legislation: Government’s Bill is the shape of things to come

BY THE end of 2026, employment rights are expected to be considerably different to those in force today.

“Although much of the detail will be the subject of consultation which then needs to be pinned down in regulations or codes of practice, the publication of the Employment Rights Bill in October 2024 indicates the big changes that are on the horizon,” said Sharon Hundal, a partner with Borner Martell Turner Coulston.

Sharon outlines some main points in the Bill and the changes to employer’s National Insurance contributions which were announced at the autumn Budget.

Wider rights to claim unfair dismissal

One of the biggest proposed changes is that protection from unfair dismissal will become a day-one right. At present, employees usually need two years’ employment to bring a claim for unfair dismissal.

New limits on ‘fire and rehire’

At the moment, if an employer cannot get an employee to agree changes to their terms and conditions, they may be able to follow a process to fairly dismiss the employee and offer to reengage them on a new contract. This is often referred to as ‘fire and rehire’.

Under the Bill, this would result in an automatically unfair dismissal, unless the employer can show it was not avoidable due to financial difficulties.

New right to guaranteed hours

There is no right at present to a guaranteed number of hours’ work. The Bill would require an employer to offer guaranteed hours to a worker on a zero-hours contract or low-hours contract based on the hours worked during a defined period.

New right to reasonable notice of shifts and payment for cancelled shifts

Some workers will be entitled to reasonable notice of a shift that they are required to work. If the employer cancels a shift, the worker will have to be given reasonable notice of this. If not enough notice is given, the worker would receive compensation to reflect the loss of income.

New obligation to inform about right to join a trade union

The law currently requires employers to include certain information in their workers’ contracts of employment or statements of particulars. The Bill would add informing workers of their right to join a trade union to this list.

Widening obligations and liabilities for harassment at work

Employers will be liable for harassment of their staff if they fail to take all reasonable steps to prevent harassment by a third party, such as a customer or supplier. The harassment could relate to any protected characteristic, such as gender or race.

Autumn Budget 24: employer’s NIC

From 6 April 2025, the employer’s rate for National Insurance Contributions will increase from 13.8% to 15%. The threshold from which it becomes payable for each employee is reduced from £9,100 to £5,000 per year.

The employment allowance is increased from £5,000 to £10,500, meaning eligible employers (mostly small employers) can reduce their total NIC payments for the tax year 2025/26 by £10,500.

How we can help

Although the Employment Bill changes are not expected until 2026, they will bring a significant shift in how employers will need to operate to minimise the risk of a tribunal claim. For instance, thorough recruitment processes and effective performance monitoring during probationary periods will become increasingly important. We can advise you on how to prepare for these changes.

For further information, contact Sharon Hundal in the Borneo Martell Turner Coulston employment team on 01604 622101 or email  has offices in Northampton and Kettering.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.