When does the Employment Rights Bill come into force?

The Bill is expected to receive Royal Assent in late 2025, with most substantive provisions coming into force in stages from 2026. Implementation timing is set by secondary legislation.

Will I get day-one unfair dismissal rights immediately?

No. The two-year qualifying period for unfair dismissal claims continues to apply until the relevant provision is brought into force, expected in 2026.

Does the Bill ban fire and rehire?

It does not ban it outright but tightens the rules significantly. Dismissal for refusing a contractual variation will be automatically unfair in most circumstances.

How does the Bill affect settlement agreements?

Settlement agreements remain valid and important. Greater employer exposure to claims is likely to increase volumes and may improve the financial offers employees receive.

Should I wait for the Bill before signing a settlement agreement?

Not necessarily. Whether to sign depends on your individual position. We assess the strength of your claims under both current and incoming law in your initial call.

Will my probation be longer under the Bill?

A new statutory probationary framework is expected, with a lighter dismissal process during the probation period. Final length and process will be confirmed in regulations.

The Employment Rights Bill 2025 and settlement agreements

Last updated: April 2026

The biggest shake-up of UK employment law in a decade. Day-one unfair dismissal rights, restrictions on fire-and-rehire, and expanded tribunal grounds. Here is what it means if you might be offered a settlement agreement.

Summary of key changes

Day-one unfair dismissal rights

Removing the current 2-year qualifying period. All employees will have protection from day one.

Statutory probationary periods

A new statutory framework for lighter-touch dismissal during probation.

Fire-and-rehire restrictions

Stricter rules on changing terms by dismissal and re-engagement.

Expanded protected disclosure grounds

More categories of whistleblowing protected.

Third-party harassment liability

Employers responsible for harassment of staff by customers and clients.

Flexible working as default

Reasonable adjustments required from day one.

Changes to tribunal time limits

Extended deadlines for bringing claims.

All subject to final legislation and implementation dates.

Why settlement agreement volumes are expected to rise

With day-one unfair dismissal rights, employers lose the safety net of the two-year qualifying period. Dismissing a new employee who is not working out becomes legally riskier. Settlement agreements provide a clean, certain resolution.

Fire-and-rehire restrictions mean that when employers want to change terms, the traditional approach becomes harder. Settlement agreements can achieve similar outcomes by agreement.

Expanded protected disclosure and harassment grounds mean more potential claims, and more cases settling rather than going to tribunal.

What this means for you as an employee

If you have been in a role less than 2 years, you now have more leverage.
Settlement agreements may be offered earlier and more readily.
Financial offers may be more generous given employer exposure.
Getting specialist advice before the new framework beds in is valuable.

Implementation timeline

Bill publishedOctober 2024
Second reading in ParliamentLate 2024
Expected Royal AssentLate 2025 (subject to Parliament)
Staged implementationFrom 2026 onwards (most provisions)

Frequently asked questions

Get expert advice on your settlement agreement today

Speak to a qualified solicitor the same working day. Your employer usually pays the legal fee as part of the agreement itself.