The Employment Rights Bill is rolling out the most significant employment law overhaul in decades. Here’s your essential guide to what’s changing and when it affects your business.
The Employment Rights Bill timeline
Understanding the rollout schedule is crucial for business planning and compliance.
When: At Royal Assent or Shortly Afterwards
- Strike laws scrapped – minimum service level requirements disappear
- Trade union restrictions lifted – 2016 Act provisions reversed
- Political fund ballots simplified – 10-year requirement gone
- Strike paperwork refined – easier industrial action processes
- Workers protected – can’t be fired for taking lawful industrial action
When: April 2026
- Redundancy costs doubled – up to 180 days’ pay maximum
- Paternity leave from day one – no service requirement needed
- Sexual harassment whistleblowing – enhanced protection for reporters
- Fair Work Agency launches – new enforcement body with real teeth
- Sick pay from day one – no earnings threshold or waiting period
- Union recognition simplified – more efficient approval process
- Digital voting introduced – electronic and workplace ballots allowed
When: October 2026
- Fire and rehire restricted – only allowed in limited circumstances
- Union rights must be communicated – tell workers they can join
- Sexual harassment prevention mandatory – employers must take “all reasonable steps”
- Third-party harassment banned – employers liable for customer/client behaviour
When: 2027
- Unfair dismissal from day one – two-year rule scrapped, statutory probation introduced
- Flexible working refusals explained – employers must justify their decisions
What this means for your business
The practical implications go far beyond simple compliance – this affects your bottom line and daily operations.
Immediate actions needed:
- Review your sexual harassment policies
- Prepare for day-one sick pay costs
- Audit your fire and rehire processes
- Budget planning:
- Factor in potentially doubled redundancy costs
- Consider increased sick pay expenses
- Plan for enhanced parental leave uptake
- HR policy overhaul:
- Unfair dismissal procedures need complete revision
- Flexible working policies require more detailed processes
- Zero-hour contracts may need restructuring
Hear from our People and Culture Manager
These changes represent the most worker-friendly employment legislation in years and early preparation is crucial. Our People and Culture Manager, Eleanor Taylor, shares her thoughts on how companies can navigate the changes:
“The Employment Rights Bill represents a fundamental shift in how we approach employee relations. Companies that start preparing early – reviewing policies, training managers etc. – will find the transition much easier.
And it’s important to remember – it’s not just about compliance; it’s about building a culture that naturally aligns with these new standards.”
Need help navigating these changes? Contact Eleanor Taylor today at [email protected] for further insights and guidance.
