On 1st July, the government announced their roadmap for implementing the Employment Rights Bill.
The legislation, which will bring about one of the biggest changes to employment law in decades, is currently making its way through the House of Lords. Following this, it will gain Royal Assent, and the implementation process will begin.
The good news for SMEs is that the implementation is slightly more phased than originally expected. Though some new rules relating to trade unions will come into force immediately (at Royal Assent), and further changes are expected in April 2026, some of the major changes are not expected for a year or more. Two of the most talked about changes – day one unfair dismissal rights and changes to zero-hour contracts – are not expected until 2027. This gives you time to prepare and futureproof your business.
Before many of these changes are implemented, there will be a phased consultation period. During this, the government will be consulting on the details of each policy. The HR Dept will be seeking to ensure your views are heard, with many of these changes having the largest impact on small and medium sized businesses.
Below we summarise some of the key changes, when their consultation phase is likely to be and when we expect them to be implemented.
Trade union reforms
Consultation: N/A
Implementation: Starting immediately or soon after Royal Assent
The government will be repealing and reforming various Acts to make it easier for employees to organise union activities, as well as increasing the protection for taking industrial action. There will be further changes to this over the next couple of years, which will be consulted on towards the end of the year and early next year.
Collective Redundancies
Consultation: Winter/early 2026
Implementation: April 2026
In April 2026, the collective redundancy maximum period for the protective award will be doubled, from 90 days to 180. This will be consulted on at the start of the year. Changes to the collective consultation threshold are expected in 2027.
Paternity and Parental Leave Rights
Consultation: N/A
Implementation: April 2026
Paternity Leave and Unpaid Parental Leave will become a day one right for employees.
Fair Work Agency
Consultation: N/A
Implementation: April 2026
The Fair Work Agency (FWA) will be established in April 2026. The FWA will have powers to investigate and act on breaches of employment law.
Statutory Sick Pay
Consultation: N/A
Implementation: April 2026
The Lower Earnings Limit threshold and waiting period for Statutory Sick Pay (SSP) will be removed, meaning all employees can claim SSP from the first day of absence.
Fire and Rehire
Consultation: Autumn 2025
Implementation: October 2026
The banning of ‘fire and rehire’ – a method normally used to change contracts terms – will take place next year.
Prevention of harassment
Consultation: N/A
Implementation: October 2026
Requirements for employers to take ‘all reasonable steps’ to prevent sexual harassment, as well as an obligation not to permit third party harassment, is expected in October 2026. Further changes are expected in 2027.
Employment Tribunal Claim Limits
Consultation: N/A
Implementation: October 2026
The length of time an employee has to make a tribunal claim will be doubling from three months to six from next autumn.
Flexible Working
Consultation: Winter 2026
Implementation: 2027
The government pledged to make flexible working the ‘default’ for employees. They will be consulting on this at the start of 2026, with implementation coming in 2027.
Bereavement Leave
Consultation: Autumn 2025
Implementation: 2027
Bereavement leave will be made available to all employees, rather than just those with dependents.
Zero-Hour Contracts and Agency Workers
Consultation: Autumn 2025
Implementation: 2027
One of the headline policies from this bill – ending the ‘exploitative use’ of zero-hour contracts – is not expected until 2027. These measures will also apply to agency workers.
Day One Unfair Dismissal Rights
Consultation: Summer/Autumn 2025
Implementation: 2027
The removal of the current two-year buffer before employees get unfair dismissal rights is expected to happen in 2027. This will include a new statutory probation period.
Whilst these changes will have an impact on your business, this timeline allows you to begin planning to implement the changes.
The HR Dept is by your side to support you through this. Our dedicated advisors will provide you with up-to-date information and advice to smooth the transition as much as possible.
