From NDAs to Zero-Hour Contracts: The New Rules That Demand Employers’ Attention

The Employment Rights Bill is ushering in the most comprehensive overhaul of UK workplace law in over 50 years. On 7 July 2025, major new amendments were introduced in the House of Lords — adding further weight to reforms originally published on 1 July.

This legislation affects all employers, regardless of size or sector. With implementation beginning later this year and continuing through to 2028, businesses need to act now to stay compliant, avoid litigation, and maintain employee trust.

What’s Changing?

1. NDAs and Settlement Agreements: No Longer Valid in Harassment and Discrimination Cases

One of the most transformative changes is the ban on non-disclosure agreements (NDAs) and confidentiality clauses in settlement agreements when used to silence employees in cases involving workplace harassment or discrimination.

What does this mean in practice?

Employers will still be able to settle disputes through agreed exits or compensation, but cannot prevent employees from speaking publicly about their experiences or reporting them to third parties like regulators or the police. Any clause attempting to do so will be unenforceable in law.

Why it matters:

This measure is designed to combat the misuse of NDAs in covering up toxic workplace cultures. It aims to protect whistleblowers and survivors, while ensuring that employers tackle misconduct at its root rather than through confidentiality payments.

2. Fire-and-Rehire: Narrower in Scope and Subject to Stricter Procedures

The controversial practice of “fire-and-rehire” — where employers dismiss staff and offer re-employment on different terms — remains technically legal, but the Bill now imposes tighter procedural requirements and restrictions.

What’s changing?

The practice will be limited to specific contractual terms, such as pay, working hours, pension arrangements, and holiday entitlement. Employers must engage in meaningful and documented consultation before taking action, and show that they’ve explored genuine alternatives.

Risk of non-compliance:

If the consultation is superficial or the variation appears unreasonable, any resulting dismissal could now be found automatically unfair, exposing employers to employment tribunal claims, reputational damage, and potential reinstatement orders.

3. Zero-Hour Contracts: Right to Request Guaranteed Hours After 12 Weeks

Aimed at tackling job insecurity, the Bill introduces a new right for workers on zero-hour or low-hour contracts to request a predictable work pattern after 12 weeks of service.

What does it involve?

Once eligible, employees can make a formal request for minimum guaranteed weekly hours, which the employer must respond to within one month. Employers can refuse — but only for specified, lawful business reasons, which must be clearly communicated in writing.

Who is included?

This right will also apply to agency workers, ensuring broader protection for those in casual or temporary roles.

Business impact:

Organisations that rely on flexible contracts (retail, hospitality, logistics) will need to track employee service dates closely and create systems for processing, evaluating, and responding to requests consistently.

4. Bereavement Leave for Pregnancy Loss: New Legal Right Recognises Early Loss

In a landmark step, the Bill introduces paid bereavement leave for pregnancy loss before 24 weeks gestation — a scenario previously excluded from statutory protections.

Why is this important?

Until now, only pregnancy loss after 24 weeks (classified as stillbirth) triggered formal bereavement rights. This new law acknowledges the emotional and psychological toll of earlier losses, offering employees time to grieve without financial penalty.

What employers should do:

This reform requires policy updates, training for line managers and HR staff, and the implementation of empathetic communication procedures. It also aligns with broader trends in employee wellbeing and inclusive workplace practices.

What Employers Should Do Now

The Bill will be implemented in phases, but certain obligations will apply from late 2025. Forward-thinking employers should start preparing now to ensure compliance and avoid disruption.

Your next steps:

• Audit contracts and policies for non-compliant NDAs or unfair variation clauses
• Train managers on consultation protocols and sensitive policy enforcement
• Establish clear systems for zero-hour tracking and predictable hours requests
• Update internal handbooks to reflect new bereavement rights and procedures
• Communicate early and transparently with staff to maintain trust

Why It Matters More Than Ever

This Bill represents not just a legal change — but a cultural one. Transparency, fairness, and dignity in the workplace are no longer optional extras. Employers who adapt early will strengthen their legal position and their brand as responsible, modern employers.