As we move through 2025, updates to UK employment law are set to bring new challenges and opportunities. These changes will influence how employers and candidates approach work—and it’s up to us in recruitment to help them navigate this evolving landscape.
From new “day one” rights to flexible working reforms, here’s a deeper dive into the changes you need to know about.
Employment Rights Bill (erb): what’s changing?
The Employment Rights Bill (ERB) is a significant piece of legislation, with most reforms expected to take effect from 2026. That said, now is the time to understand what’s coming.
“Day one” rights against unfair dismissal
Employees will gain the right to challenge unfair dismissal from their very first day of employment, removing the current two-year qualifying period. While this change won’t take effect until late 2026, employers may need to rethink how they manage performance and probation periods. For recruiters, this could mean preparing clients for stricter onboarding processes to ensure new hires succeed.
Fire and rehire reforms
Employers will no longer be able to terminate and rehire employees to impose new contractual terms. If they attempt to do so, it will be automatically considered unfair dismissal. This change might lead to more careful contract negotiations, and recruiters may need to play a more active role in ensuring clarity during the hiring process.
Stronger harassment protections
Employers will face stricter duties to prevent harassment in the workplace. They’ll also be liable for harassment by third parties, such as clients or customers. Recruiters should encourage employers to create clear anti-harassment policies and highlight workplace culture as part of the hiring conversation.
Zero-hours contracts and shift guarantees
Workers on zero-hours contracts, or those with “low” guaranteed hours who regularly work beyond them, will need to be offered guaranteed hours. Employers will also need to compensate workers for cancelled or shortened shifts. For recruiters, this means more emphasis on stability and transparency in roles involving variable hours.
Flexible working reforms
Flexible working requests will become a “day one” right, and employers must provide specific, reasonable grounds if they reject a request. This change will likely make flexible working a standard expectation for candidates. Recruiters should help clients develop clear, fair policies to stay competitive in attracting talent.
Equality and pay gaps: new reporting rules
The draft Equality (Race and Disability) Bill will extend pay gap reporting requirements to include ethnicity and disability for employers with over 250 staff.
This move towards greater transparency will increase scrutiny of diversity and inclusion efforts. Recruiters can help by advising clients on promoting inclusivity and positioning their organisations as proactive and progressive. It’s also a chance to highlight employers who are already making strides in this area to attract top talent.
Neonatal leave and pay: an important step
Parents of babies requiring neonatal care will soon receive an additional 12 weeks of leave and pay, on top of existing parental leave entitlements. While the exact implementation timeline isn’t set, this is a big win for candidates seeking family-friendly workplaces.
Recruiters can encourage clients to prepare policies that support working parents, making their organisations more appealing to a broader talent pool.
The right to disconnect: what’s on the horizon?
The concept of a “right to disconnect” is gaining traction, with the Government considering a statutory Code of Practice to limit employees’ obligations outside working hours. While still under consultation, this could reshape conversations around work-life balance, particularly for roles with high demands or long hours.
For recruiters, it’s worth keeping an eye on this development and being prepared to discuss it with both candidates and clients.
Simplifying employment status: clarity on the cards
The Government is exploring a “single worker” status to simplify employment types, distinguishing workers from self-employed contractors. If introduced, this could reduce confusion over employment rights, particularly in gig economy roles.
Recruiters placing contractors or temporary workers should watch this closely, as it may streamline contract negotiations and compliance processes.
What does this mean for recruitment?
These legal changes are more than just updates—they’re an opportunity to add value and strengthen your relationships with clients and candidates. Here’s how to get ahead:
- Educate your clients: Many businesses won’t fully understand how these changes impact them. Be the expert they turn to for advice on compliance and best practices
- Adapt to changing candidate expectations: From job security to flexible working, candidates will increasingly prioritise roles that align with their rights and values. Stay informed to help them make informed decisions
- Update your processes: Ensure job descriptions, contracts, and internal policies reflect these changes to avoid unnecessary compliance risks
What does this mean for recruitment?
The employment law landscape is evolving and staying informed will set you apart in a competitive recruitment market. These changes offer an opportunity to position yourself as a trusted partner, guiding clients and candidates through what’s next.
By being proactive, adaptable, and well-informed, you’ll not only navigate these changes with ease – you’ll help others do the same.
