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The Employment Rights Bill, the piece of legislation which is set to make the biggest change to Employment rights in a generation, has passed the first stage towards becoming law.

The Bill has now passed through the House of Commons and has completed its first reading in the House of Lords. Whilst this does not mean that the Bill has passed into law yet, it is well on its way to doing so. The second reading in the House of Lords is due to take place on 27 March where there will be a general debate on all aspects of the Bill.

It is likely that the Bill will go through the relevant stages and be passed into law prior to Parliament’s break for the summer this year.

What does this mean for employers?

With the Bill likely to be implemented soon, employers must think ahead about the impact the changes will have. Some changes may not come in immediately on the Bill becoming law, however employers should nonetheless consider ensuring they are ready for when they do come into force.

It is sensible to consider reviewing policies, procedures and contracts to ensure they will be legally compliant for when the Bill becomes an Act. We outline the main changes which will be coming in here. It is never advisable for employers to act under pressure or even in a reactive way after the changes come into effect as this could lead to getting it wrong.

The Employment Team at Law 365 offer a free initial review of your employment contract and staff handbook in order to provide you with tailored advice on how you can prepare for the upcoming changes.

Book your slot with our legal expert here.

The legal position in this article is correct at the time of publication in March 2025.