Employment Rights Bill: Roadmap to Implementation — Key Changes and Actions for Employers

Commentary

The new Employment Rights Bill marks the most significant overhaul of workplace law in a generation, reflecting the Government’s intention to “make work pay” and modernise employment protections across Great Britain.

Announced as a flagship policy within 100 days of Labour’s election victory, the Bill is hugely ambitious, and seeks to address issues such as low pay, insecure contracts, as well as updating workforce protections. Its phased rollout over the next couple of years will give employers some time to get their houses in order, but the changes are extensive, and will require forward planning, a complete overhaul of employment processes and considerable Management training on all of the new approaches that will be required.

Employers, particularly those with casual, agency or shift-based workforces, and those with existing redundancy and dismissal practices, will need to fully understand the implication of these changes as a priority, even though some of them feel a long way off.

Above all, the removal of the two-year service requirement for unfair dismissal, and new rules on zero-hours contracts, represent a step-change in employment risk. The Bill will also bring new requirements around flexible working, parental leave, sexual harassment and more.

Key Changes at a Glance

April 2026

• Statutory Sick Pay available from day one, with no lower earnings limit or waiting period.

• Day one eligibility for paternity and unpaid parental leave.

• Stronger whistleblowing protections for sexual harassment.

• Collective redundancy award doubled (from 90 to 180 days’ pay).

• Simplified trade union recognition and new balloting options.

• Establishment of Fair Work Agency body

October 2026

• Employment Tribunal claims: deadline extended to 6 months.

• Tighter restrictions on ‘fire and re-hire’ for changing contractual terms.

• Employers must prevent sexual harassment (including by third parties).

• Tougher tip laws and union rights.

2027

• Day one unfair dismissal rights (statutory probation period to be introduced).

• Extended rights for pregnant workers.

• New requirements for flexible working refusals.

• Bereavement leave expanded to cover miscarriages.

• Zero hours and agency workers must be offered contracts matching actual hours.

• Mandatory gender pay gap and menopause action plans.

Top Action Points for Employers

1.              Review and update Dismissal and Probation Policies

Prepare for day one unfair dismissal rights by ensuring all probation procedures are robust, fair, and well-documented.

2.              Audit and amend Family Leave and Sick Pay Policies

Remove service requirements for family leave, and ensure all staff are covered by SSP from day one.

3.              Train Managers on Harassment Prevention

Implement or enhance anti-harassment training, including the duty to prevent harassment by third parties, and ensure whistleblowing channels cover sexual harassment.

4.              Review use of Zero Hours and Agency Contracts

Recent proposed amendments, which may not be accepted by the Government, suggest a right to request guaranteed shifts moving away from an employer’s duty to offer.

Nevertheless, we would recommend limiting the use of casual staff, and moving more people onto variable hour contracts, preferably with a minimum number of guaranteed shifts/hours.  The Government, in its recent amendments, does appear to have softened its proposals down to a right to request guaranteed shifts from a duty to offer.   Also, have a process in place for short notice shift changes and how you will compensate those that consequently could lose earnings.

5.              Update Flexible Working Procedures

Ensure all flexible working requests are properly considered, and refusals are clearly justified in writing.

6.              Monitor Consultations and Sector Guidance

Keep abreast of ongoing Government and ACAS consultations, and be ready to adapt as regulations and Codes of Practice are finalised.

7.              Communicate changes to Staff (and Union Reps)

Keep employees and any recognised trade unions informed of changes and new rights, and consult as required.

8.              Strengthen Record-Keeping and HR Documentation

Maintain comprehensive records of policy changes, staff communications and Management training in anticipation of greater regulatory scrutiny.

Conclusion

The Employment Rights Bill is the centrepiece of the Government’s workplace reforms, designed to bring tangible improvements to pay, security and conditions for working people. The Bill’s rollout will be phased from late 2025 through 2027, with public consultations to develop the details for each measure.

Key provisions include doubling the maximum protective award for collective redundancy, day one rights to paternity and unpaid parental leave, expanded whistleblowing protections for sexual harassment, immediate eligibility for statutory sick pay, and easier trade union recognition.

 From October 2026, new rules will restrict ‘fire and re-hire’, as well as big implications for employers trying to downgrade pay, hours, pensions and holidays.  Employers will need to take even more proactive steps against all forms of harassment (including by third parties, such as customers, clients, suppliers and members of the public), and extend Tribunal claim windows from 3 to 6 months. There will also be tougher requirements around the fair distribution of tips, and new rights for trade union representatives.

In 2027, larger employers must publish gender pay gap and menopause action plans.  All employers must provide additional protections for pregnant employees, expand bereavement leave, and offer more job security to zero hours and agency workers. The biggest change for many will be the scrapping of the two-year qualifying period for unfair dismissal - making day one protection the default, with a statutory probation period for new starters that will still require some key processes to have been followed; otherwise, employees can make unfair dismissal claims regardless of very little service.

Employers should start preparing now, beginning with policy reviews, Manager training and robust documentation, to avoid compliance issues and potential claims once the new laws come into force.  If you are a client, we will be having those discussions with you.  Even if you are not a client, listen to our bi-monthly webinars, read our articles and we will keep you updated on what is proving to be a fast moving and hugely significant period of change in employment law and workforce rights.

The guidance provided in this article is just that - guidance. Before taking any action, make sure that you know what you are doing, or call an expert for specific advice