Employment Rights Bill Set to Become Law: What Employers Need to Know

Date published: 18/12/2025
Reading time: 3 min read

After months of parliamentary back‑and‑forth, the Employment Rights Bill has finally passed its final stage in the House of Lords and is expected to receive Royal Assent before Christmas. With political agreement now secured, employers can begin preparing for one of the most wide‑ranging updates to UK employment law in decades.

As the Bill reached its decisive stages, Bellevue Law’s founder, Florence Brocklesby, was invited by journalists to comment on the implications for employers. Her insights have now been featured in several publications, including:

These articles highlight the key changes and Florence’s perspective on how employers should prepare.

Clarity at Last: Moving From Speculation to Planning

Florence emphasised that, regardless of differing opinions on the reforms themselves, employers will welcome the end of uncertainty. The Bill’s finalisation allows organisations to shift from speculation to practical implementation planning.

She notes that the breadth of changes means employers should treat implementation as a significant project requiring senior oversight, HR resource, and proper planning to ensure a smooth transition.

Key Reforms Employers Should Prepare For

1. Six‑Month Qualifying Period for Unfair Dismissal

The Government has confirmed that unfair dismissal rights will apply after six months of employment, not from day one as originally proposed.

Florence stresses the importance of:

  • Robust hiring processes
  • Strong performance management during the early months
  • Training managers to give timely, constructive feedback and handle difficult conversations confidently

With rights arising earlier, the first six months of employment become even more critical.

2. Removal of the Unfair Dismissal Compensation Cap

One of the most consequential developments is the removal of the compensation limits for unfair dismissal claims. These caps previously sat at the lower of 52 weeks’ pay or £118,223.

This change is especially significant for employers with large numbers of highly paid staff, such as those in financial and professional services. Organisations may need to:

  • Reassess risk and cost exposure
  • Review approaches to exits and redundancies
  • Strengthen documentation and internal processes

Preparing for Implementation

With the combination of earlier access to unfair dismissal rights and uncapped compensation, employers should now:

  • Update contracts, policies, and handbooks
  • Train HR teams and line managers
  • Review discipline, performance, and redundancy procedures
  • Ensure leadership understands operational and financial implications

How Bellevue Law Can Support You

Bellevue Law is already assisting clients as they prepare for the upcoming changes. We can help with policy reviews, training managers, planning implementation, and assessing organisational risk.

Please contact us if you’d like tailored support navigating the new Employment Rights framework.

Contact Us

Share this post

Latest insights