Employment Rights law 'most significant improvement' in a generation, says PDA

The Pharmacists’ Defence Association (PDA) ‘celebrates’ the passing of the Employment Rights Bill, after its progress was halted in the House of Lords by weeks of parliamentary back and forth.

Royal Assent is expected before the end of 2025, at which point the Employment Rights Bill will become law, and come into force in stages throughout 2026 and 2027.

The Employment Rights Bill aims to help more people stay in work, support workers’ productivity and prioritise fairness, equality and the wellbeing of workers.

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The PDA union director, Paul Day, said: ‘A key part of the PDA’s role is to help members understand and exercise their rights at work and this legislation is the most significant improvement to many PDA member’s rights at work for a generation.

'This act does not bring every change needed, but it is a good start, and I hope that when workers, their families and indeed businesses see that improved rights at work ultimately benefit industry and the economy, we can see the government do even more. Addressing the longstanding issues of employment status to benefit our many locum members has to be high up on the list of priorities for that.’

The Employment Rights Bill – soon to become the Employment Rights Act 2025 – introduces several significant changes to employment law in the UK that pharmacists and pharmacy owners should be aware of. These include;

• The reduction of the unfair dismissal qualifying period – from two years to six months;
• The removal of the cap on unfair dismissal compensation;
• Sick pay entitlement from day one of employment;
• Paternity leave and unpaid parental leave entitlement from day one of employment;
• A ban on “fire and rehire” dismissals, where workers are dismissed and then re-employed on less favourable terms and conditions;
• Better protection from discrimination and harassment;
• The right to bereavement leave, including for pregnancy loss;

The Bill faced significant resistance from Conservatives and business organisations, which meant several compromises had to be made.

Earlier this month, trade unions accepted the removal of day-one protection against unfair dismissal as part of the reform package, in exchange for abolishing the cap on unfair dismissal compensation, allowing the bill to pass Parliament in time for the new rights to begin taking effect in April.

Recent Trades Union Congress (TUC) analysis showed the wider benefits of the Bill to be £10.4 billion. This is significantly more than the costs, which have previously been estimated at between £0.9bn and £5bn. Updated government analysis is expected to be published soon.

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TUC general secretary, Paul Nowak, said: ‘Unions and workers have long campaigned for these vital rights. Together, we have broken a decades long economic status quo defined by insecurity, weak rights and poor pay. Finally, working people will enjoy more security, better pay and dignity at work thanks to this Bill.

‘It’s now vital that workers start feeling the benefits of this legislation in their lives as soon as possible. That means the legislation must be implemented in full, and at speed – with watertight secondary legislation to ensure there are no loopholes for bad bosses to exploit.’

Partner in employment at UK and Ireland law firm Browne Jacobson, Lee Ashwood, said that the Bill’s challenging passage through Parliament has ‘somewhat watered down the original Bill’s promise’ to reform workers’ rights.

The government were forced to make concessions on key proposals such and most of the changes require commencement regulations to bring them into force and many require further substantive regulations.

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‘Therefore, some of the biggest changes – including to collective redundancy consultation, guaranteed hours contracts and unfair dismissal – won’t come into force until 2027. Equally, the final detail of the secondary legislation may be impacted by the responses to the various consultations,’ he said.

He advised employers to review and update their policy’s and procedures in line with the new legislation.