What do you need to know about the Employment Rights Bill?
Set to take effect in Autumn this year, the bill brings significant updates to UK employment law. It aims to strengthen worker protections in areas such as sick pay, parental leave, unfair dismissal, and sexual harassment. Many of the reforms will impact SMEs, whether you have one or 250 employees.
Employment Rights Bill – Implementation Timeline
AUTUMN 2025
First phase of the Employment Rights Bill comes into effect.
Repeal of the Strikes (Minimum Service Levels) Act 2023, and Repeal of most of the Trade Union Act 2016.
Stronger protections against dismissal for lawful industrial action.
APRIL 2026
Fair Work Agency implementation.
Sick pay from day 1 and removal of the Lower Earnings Limit.
Increased redundancy protective award, Paternity & unpaid parental leave – day 1 rights.
OCTOBER 2026
Ban on “fire and rehire” (with a narrow exception for financial viability).
Tribunal claim limit extended to 6 months.
New duties to prevent sexual harassment and third-party harassment.
2027
Removal of the 2-year unfair dismissal qualifying period.
Probationary period (new statutory probationary period likely to be 9 months).
Guaranteed hours for zero-hours and low-hours workers.
Flexible working – day 1 right.
Additional protections for pregnant workers, Bereavement leave – day 1 right (includes miscarriage before 24 weeks).
Preparing Your Business
EMPLOYERS NEED TO:
Update contracts to reflect changes to employer obligations
Introduce policies on all leave types
Introduce sexual harassment policies
Review probation periods in light of Day 1 employee rights
EMPLOYEES GAIN:
Enhanced protection against unfair dismissal.
Better entitlement to statutory sick pay and various family leaves.
The right to flexible working, guaranteed rest periods, and protection of their wages.
Fair Work Agency – What is it?
A new enforcement body to help employers comply with employment law and take action against those who break it, aiming to make rights easier to enforce and protect all workers fairly.
Is your business ready for the changes?
The new employment law changes in the UK represent a significant shift in the rights and protections afforded to workers. While these changes offer numerous benefits, including enhanced worker protections, increased transparency, and support for vulnerable employees, they also pose challenges for businesses. The potential burden of implementing new regulations, coupled with the proposed increase in National Insurance contributions, may create additional financial pressure and complicate workforce planning for companies.
As the landscape of employment law continues to evolve, it is essential for small business owners to stay informed and proactive in adapting to these changes.
If you need support understanding or preparing for the proposed legislative changes please feel free to reach out to us at hello@4frontrecruitment.com or 07799 334438.