Top 5 Employment Rights You Need to Know in 2025

Employment rights have been a focal point of legislative and political reforms in the United Kingdom in the wake of the Brexit and the pandemic. 

Significant revisions are being made to the Employment Rights Bill 2024–25 in order to fortify job stability, enhance working conditions, and resolve enduring issues related to workplace equality and fairness.

 Maintaining awareness of these changes is not only prudent, but absolutely necessary, regardless of whether you are an entry-level worker, an experienced professional, or the owner of a small business. 

Here we explain the five most important employment rights in 2025 and what they imply for you.

1. Day-One Protection Against Unfair Dismissal

Employment Right Highlighted: Unfair dismissal

Until now, employees in the UK needed two years of continuous employment to gain the right to bring a claim for unfair dismissal. That’s changing.

What’s New?

Under the new Employment Rights Bill, employees will be protected from unfair dismissal from day one of employment.

This right will no longer be dependent on length of service, marking a historic shift in UK labour law.

Why It Matters:

• It gives all workers, including those in short-term roles or probationary contracts, the confidence to speak up against mistreatment without fear of retaliation.
• It closes a loophole previously used by employers to terminate workers just before the two-year mark to avoid legal claims.

Practical Notes:

• Employers can still use a statutory probationary period (anticipated to be 6–9 months), where dismissal is allowed under a “lighter-touch” process.
• Businesses have time to prepare their policies because this change is not expected to be implemented immediately. It is expected to happen in late 2026.

Tip for Employers: Review your contracts and dismissal procedures to ensure they’re compliant with this upcoming rule. Being proactive now can prevent costly tribunal cases later.

Cited source: Commons Library Research Briefing

Also Read: Universal Credit vs. Jobseeker’s Allowance-Key Differences Explained

2. Restrictions on ‘Fire and Rehire’ Tactics

Employment Right Highlighted: Protection from coercive contract changes

The controversial practice known as “fire and rehire”—where employees are dismissed and then re-engaged on less favourable terms—is under heavy scrutiny.

What’s Changing?

The new law aims to prohibit employers from using fire and rehire tactics to enforce contract changes. Dismissals made in these circumstances will generally be considered automatically unfair.

Why This Matters:

This practice, although legal under current rules, has been widely criticized by trade unions, MPs, and employee rights groups for placing undue pressure on staff to accept worse conditions.

What Employers Must Do:

• Seek mutual agreement when making contractual changes.
• Provide clear evidence that all alternative options were considered.
• Show that proposed changes are necessary and justifiable.

Real-World Example: In 2021, British Gas faced mass walkouts after attempting to implement new contracts under fire and rehire. The backlash not only damaged the company’s reputation but also led to widespread calls for reform—now reflected in this legislation.

3. Fairer Rules for Zero-Hours and Agency Workers

Employment Right Highlighted: Rights for zero-hours and agency workers

Zero-hours contracts offer flexibility but often at the cost of stability. This has led to increased regulation around how such contracts can be used.

What’s New?

The bill introduces predictability rights for workers on irregular schedules. If someone works a consistent pattern for a number of weeks, they can request a fixed contract that reflects those hours.

How It Works:

• Applies to zero-hours and agency workers.
• Workers can apply for a more predictable working pattern after 26 weeks of service.
• Employers must respond reasonably and within one month.

Additional Protections:

• Minimum notice must be given for shifts.
• If a scheduled shift is cancelled last-minute, compensation must be paid to the worker.

Why It Matters: In the UK, over 1 million people work on zero-hours contracts. These reforms help bring stability to insecure jobs, particularly in retail, hospitality, and health sectors.

Employer Action Step: Set up systems to monitor shift consistency and respond to regular pattern requests in a timely, legally compliant manner.

Cited source: Geldards Law Update

4. Expanded Statutory Sick Pay (SSP) Entitlements

Employment Right Highlighted: Access to statutory sick pay

The COVID-19 pandemic revealed how fragile statutory sick pay rules are in the UK, particularly for low-income workers and those with irregular hours. The new law addresses these gaps.

Main Changes:

• Pay for sick days beginning on the first day: Awaiting approval no longer takes three days.
• Workers who earned less than approximately £123 per week were previously ineligible for SSP, but there is no lower earnings limit now. That bar is going down.
• Employees whose weekly earnings are below the standard SSP rate (~£125) will receive 80% of their average earnings as pro-rata payments.

Why This Change is Crucial:

Too many workers have been forced to work while sick, especially during health crises, simply because they couldn’t afford not to. Expanding SSP coverage promotes both financial and public health.

What Employees Should Do:

• Keep a record of working hours and income if on variable contracts.
• Report sickness to your employer as soon as possible to avoid delays.

Employers Take Note: Update payroll systems and sick leave policies to reflect new SSP rules.

5. Mandatory Employer Action Against Workplace Harassment

Employment Right Highlighted: Protection from workplace harassment

Workplace harassment—especially gender-based and third-party harassment—has long been an issue. In 2025, the law demands more than just a reactive approach from employers.

What’s Required Now:

Employers are legally obligated to take “all reasonable steps” to prevent harassment before it happens—not just respond after the fact.

Third-Party Harassment:

The new law reinstates employer liability for third-party harassment (e.g. clients or customers). This was removed in 2013 and is now being reintroduced due to rising concerns, particularly in the service industry.

Best Practices for Employers:

• Implement clear anti-harassment policies.
• Offer mandatory training to employees and managers.
• Keep records of reports and how they were addressed.

Why This Matters:

In the wake of the #MeToo movement and a greater push for inclusion, this shift signals that the burden of creating safe workplaces no longer rests solely on the victim.

Also Read: Understanding Workers’ Rights in the UK: A Comprehensive Guide

Conclusion

Some of the most substantial modifications to UK labor law in more than a decade are embodied in the Employment Rights Bill. 

The reforms, which range from the implementation of unfair dismissal protections and the reform of the Social Security Pension (SSP) to the establishment of more stringent regulations regarding contract modifications and workplace harassment, are indicative of the increasing acknowledgment of the necessity for more stable and equitable working conditions.

Whether you’re a team leader or an employee, knowing your rights at work isn’t just about doing the right thing; it’s about creating a better, more ethical work environment. 

If you keep up with these changes now, you won’t be surprised later.

As a matter of fact, employment rights are changing all the time.  Adapt to their changing needs.