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Reform Hub

Government Policy Reform

The latest developments, details and anticipated timings of key employment law reforms.

Significant employment law changes are coming through the Employment Rights Bill and beyond.

Explore our Reform Hub to stay ahead of the curve.

During the general election, the Labour Party promised significant reforms to employment law in its Manifesto Commitments and Plan to Make Work Pay. The Labour Party won the election and is seeking to deliver on those reforms as part of a phased plan.

Following the King’s Speech on 17 July 2024, employers eagerly awaited details of the potential reforms. The King’s Speech Briefing Notes promised two key new employment Bills in the 2024/25 Parliamentary Session:

  • the Employment Rights Bill; and
  • the draft Equality (Race and Disability) Bill.

The King’s Speech also proposed a new Bill in respect of Digital Information and Smart Data (see the Data Privacy and AI section for detail on this).

Key Developments

Employment Rights Bill

Described as phase one of the Plan to Make Work Pay, the Employment Rights Bill was published on 10 October 2024. To read an overview of our take of it in its original form, please see our article here.

The Employment Rights Bill is making its way through Parliament, with significant amendments being made along the way, and it has now doubled in size since its first iteration. For our thoughts on the Government amendments made to the Bill on 5 March 2025 please see here.

The Employment Rights Bill is currently anticipated to pass by Summer 2025. For many reforms, however, it simply provides the framework, with much of the detail still to be fleshed out by secondary legislation, codes of practice and guidance.

Other employment reforms beyond the Employment Rights Bill

Reforms are also underway or anticipated in addition to the Employment Rights Bill, as part of the Government’s plan:

  • Some reforms are being delivered via existing powers, and non-legislative routes, such as changes to Minimum Wages.
  • Changes in respect of pay and tax were also announced in the Autumn Budget on 30 October 2024.
  • Additional reforms are promised via the Equality (Race and Disability) Bill, which is still awaited. On 18 March 2025, the Government published a Consultation on mandatory ethnicity and disability pay gap reporting, which will help shape this bill and on 7 April 2025 published a call for evidence on equality law, which seeks views on making the right to make equal pay effective for ethnic minority and disabled people and invites feedback on other areas of equality law.
  • Longer-term reforms (such as to worker and employment status) are also promised but the Government recognises that these will take longer to undertake and implement.

Separately, the Data (Use and Access) Bill (‘DUA Bill’) was published on 23 October 2024, which proposes some reforms in respect of data privacy and AI that, although not necessarily linked to the Plan to Make Work Pay, may be of interest to employers. The DUA Bill is currently going through Parliament. We discuss aspects of the DUA Bill in brief in the Data Privacy and AI section. The DUA Bill, however, is not included in the Timings etc section of this reform hub.

Timings

The Government is taking a phased approach to implementation of its Plan to Make Work Pay, which we explain in more detail below:

1. Employment Rights Bill

Described as phase one, the Employment Rights Bill was introduced on 10 October 2024 and is now making its way through Parliament with significant amendments being made along the way. Targeted consultations took place in October 2024 on some of the details of reforms in the Employment Rights Bill, and responses were published on 4 March 2025 (see here). Amendments have been made to the Employment Rights Bill to account for these consultation responses and additional reforms have also been introduced during its passage. Consequently, the Employment Rights Bill has now doubled in size since its first iteration.

The Employment Rights Bill has completed its stages in the House of Commons and has passed to the House of Lords. It will likely then be sent back and forth between the Houses as any disagreements on the final wording are resolved. This is known as ping-pong. Only once the Employment Rights Bill is agreed by both Houses, will it become law. It is anticipated that it will pass by Summer 2025.

The Employment Rights Bill, however, for many reforms simply provides the framework. Much of the detail is still to be fleshed out by secondary legislation, codes of practice and guidance. Further consultations on this detail are also anticipated.

Overall, the Government anticipates that most reforms in the Employment Rights Bill will take effect no earlier than 2026, with reforms to unfair dismissal no sooner than Autumn 2026.

There will, however, be some reforms in the Employment Rights Bill that will come into force earlier than this, such as:

  • the repeal of the Strikes (Minimum Service Levels) Act 2023, which is currently set to come into effect as soon as the Employment Rights Bill is passed; and
  • the repeal and replacement of certain provisions of the Trade Union Act 2016, which are currently set to apply from two months after the Employment Rights Bill passes.

2. Reforms using existing powers or other means

Some reforms can be delivered outside of the Employment Rights Bill using existing powers or other means such as the amendments to National Minimum Wage in April 2025. The right to switch off was also promised to be introduced via a Code of Practice. Although not formally confirmed by the Government, current rumours are that this may be being dropped or pushed significantly down the Government’s agenda.

3. Equality (Race and Disability) Bill

Other reforms will be contained in the Equality (Race and Disability) Bill, such as extending pay gap reporting and equal pay to ethnicity and disability. The Government previously promised in its Next Steps document that this would be published in draft during the 2024/25 Parliamentary Session.

On 18 March 2025, the Government published a consultation on mandatory ethnicity and disability pay gap reporting open until 10 June 2025. In addition, a call for evidence was opened on 7 April and closes on 30 June 2025, seeking views on making the right to equal pay effective for ethnic minority and disabled people and other areas of equality law. Responses to this will help shape this bill.

Timings for implementation are therefore still very uncertain, but one could anticipate that it would take a bit of time after the consultations to reconsider any bill drafting, before the Equality (Race and Disability) Bill is introduced in draft and before it makes its way through Parliament to become law. We anticipate, therefore, that these reforms will be more likely to be introduced later, for example into 2026/27.

4. Other longer term reforms

There will also be longer-term reforms (such as a review of worker status), which the Government recognises will take longer to undertake and implement and will require a further review or call to evidence, with any changes to the law to follow.

We have created the below table, colour coded as to when headline employment policies, based on their priority in the reform agenda, are likely to be introduced.

We don’t have full implementation timelines yet but will keep this updated as this becomes clearer.

At a glance

  • Red – High priority policy. Set out in the Employment Rights Bill, or a separate policy where early steps are already being taken, indicating it is high up the agenda. Those in the Employment Rights Bill are bold.
  • Amber – Medium to high priority. Confirmed as either in the Equality (Race and Disability) Bill or via other means.
  • Green – Lower priority. Subject to a longer-term review or consultation as per the Next Steps document.

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