Employment Rights Bill Update: October 2025

The Employment Rights Bill, which received Royal Assent in September 2025, introduces comprehensive changes to UK employment law. Key provisions include:

  • Ban on 'Fire and Rehire' Practices: Employers are prohibited from dismissing employees to rehire them on less favorable terms.

  • Non-Disclosure Agreements (NDAs): NDAs signed on or after 1 October 2025 are unenforceable in cases involving harassment or discrimination, with exceptions yet to be clarified.

  • Agency Worker Rights: Agency workers are entitled to contracts reflecting their regular working hours, addressing issues with zero-hours contracts.

Read more to understand how this may apply to your business and provisions to be taken to get ahead.

Ban on ‘Fire and Rehire’ Practices

Employers are now prohibited from dismissing employees in order to rehire them on less favourable terms. HR teams and leaders should review all employment contracts and internal policies to ensure there are no provisions that could be interpreted as allowing such practices. Where changes to terms and conditions are necessary, organisations should focus on voluntary arrangements, meaningful consultation, or negotiated agreements rather than unilateral dismissal. Managers should be trained in lawful alternatives, and a clear communication plan should be in place to explain proposed changes to employees. Maintaining detailed records of consultations and agreements will be crucial to demonstrate compliance.

Non-Disclosure Agreements (NDAs)

NDAs signed on or after 1st October 2025 are unenforceable in cases involving harassment or discrimination, though certain exceptions may still apply. HR and leaders should review and update all NDA templates to ensure compliance and make clear to employees that they retain the right to report harassment or discrimination without legal restriction. Managers and HR must receive training to understand when NDAs can and cannot be used. Involving legal counsel in drafting or reviewing NDAs is advisable, and thorough record-keeping should be maintained for all agreements. Transparency in communication is critical to foster a safe and legally compliant workplace environment. WWLD also have up to date freelance contract toolkits including NDAs that are available to purchase and are ready-to-use which can be found <here>.

Agency Worker Rights

Agency workers are now entitled to contracts that reflect their regular working hours, addressing concerns over zero-hours arrangements. HR should review agency contracts to ensure they comply with the new requirements, including pay parity where applicable. Workforce planning and scheduling practices should be updated to provide predictable working hours whenever possible. Agency workers should be informed of their rights and any applicable workplace benefits, and organisations should implement regular audits to ensure ongoing compliance.