Employment Rights Bill: The major changes under the new roadmap
Employment Rights Bill: The major changes under the new roadmap
Employment Rights Act
Peninsula Group, HR and Health & Safety Experts
(Last updated )
Peninsula Group, HR and Health & Safety Experts
(Last updated )
Back in October 2024, the Labour government introduced the highly-anticipated 'Employment Rights Bill'. The Bill aims to overhaul much of the existing employment law framework across the UK as we know it.
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Employment Rights Bill: The major changes under the new roadmap
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On the 24th of May 2024, the UK government passed the new ‘Paternity Leave (Bereavement) Act’. The act aims to provide vital support for bereaved fathers whose wives, adoptive, or birthing partners die. Let’s look at what the Paternity Leave (Bereavement) Act is, what the law includes, and how your business should support bereaving employees going personal loss of life.
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And now the government has unveiled their official roadmap of these changes, we have a timeline of the key dates we can expect these major HR reforms to come into effect.
To make sure you're prepared and you have your dates in order, let’s look at what the new Employment Rights Bill includes, and how these legal changes will impact your business.
What does the new Employment Rights Bill cover and when can we expect these changes?
Here are some of the key reforms and the dates to go with them...
Certain measures may be in force as soon as the Bill becomes law
The Bill is likely to receive Royal Assent in 2025. Once it gains assent, it will become law and some measures will come into effect soon after.
Currently, this includes:
Updates to trade union laws and protections
The government plan to axe the Strikes (Minimum Service Levels) Act 2023 and the majority of the Trade Union Act 2016, helping to reduce restriction on trade union activity. This is in a bid to improve union relations and "prevent the need for strikes".
They will also introduce enhanced dismissal protection for workers who take part in industrial action, so workers can stand up for their rights without fear of job security if they do strike.
Here's what's coming in April 2026
Day-one sick pay right for all workers
The Bill states that all workers - regardless of how much they earn - will be eligible for Statutory Sick Pay (SSP) from their first sick day, instead of having to wait three days. This will be paid at a flat-SSP rate or at 80% of their earnings – whichever one is lower.
A new Fair Work Agency
The government aims to establish a new Single Enforcement Body called the ‘Fair Work Agency’ to represent workers' rights and support them with tribunal claims.
This will be a new authority that can:
bring a claim to an employment tribunal on behalf of a worker who may be unable or unwilling to do so themselves
enforce that businesses pay unpaid statutory payments to workers who are entitled to it
provide individuals with legal support and representation at tribunal
With the introduction of an official body to support workers' rights, employers will need to take extra care to follow fair HR practices to avoid legal action.
The maximum collective redundancy compensation award will double
The maximum compensation award for failing to consult staff on (or ‘fire and rehire’) will double from 90 days to 180 days of pay per employee.
Day one right to family leave entitlements
Working parents will have the right to paternity leave and unpaid parental leave from day one of employment, instead of having to meet a qualifying period. (Currently, to receive paternity leave, workers need a 26-week length of continuous service by the end of 15th week of the expected childbirth or adoption date).
Then in October 2026, we have...
The requirement to tell employees about their right to join a trade union in writing
Employers will be required to tell employees about their right to join a trade union in a written statement alongside their employment contracts.
Serious restrictions on ‘fire and rehire’ schemes
The government intends to put an end to "unscrupulous" schemes and fire and rehire schemes in most cases.
This means most fire and rehire dismissals will be considered automatically unfair unless the employer can prove the change to their employee’s terms was unavoidable due to financial strain.
Extending the legal duty for employers to take "all reasonable steps" to prevent sexual harassment in the workplace, including third-party harassment
In October 2024, a legal duty came into force that made it a requirement for employers to take reasonable steps to prevent sexual harassment.
In October 2026, this existing duty will strengthen. So instead of just taking reasonable steps, employers will need to make sure they are taking "all reasonable steps".
Tightening of the new law on tips
came into effect on the 1st of October 2024. Under this law, employers must distribute qualifying tips between workers fairly.
In October 2026, employers will also be required to consult with workers on how to fairly share out tips in their workplace.
And in 2027, we'll see...
Day one right to make a claim for unfair dismissal and the introduction of a statutory probation period
The proposed Bill would see employees gain the right to claim unfair dismissal the time they commence their employment.
To provide context, if unfair dismissal became a day-one right, 9 million employees will gain that right, as opposed to just 6 million if a six-month qualifying period is imposed.
However, this proposal has been met with resistance from the House of Lords. They’re steadfast in their belief to qualify for the right of unfair dismissal, there should be at least six months’ service.
With the House of Lords’ refusal to sway on their amendment, the Bill will return to the House of Commons and be subject to further debate.
The right to a guaranteed hours contract (GHC)
The Bill states employers will be required to offer guaranteed hours contracts (GHCs) to zero-hour, low hour and agency workers that reflects the hours they regularly work.
Employers will also be required to give reasonable notice or compensation for any shifts they cancel or change for their staff.
Introduction of statutory bereavement leave
Employees will be given the right to take statutory bereavement leave to grieve the loss of a loved one. This will also extend to employees who experience miscarriages before the 24th week of pregnancy.
Extending rights and legal protection for pregnant women
and pregnant workers will have additional legal protections from dismissal for at least six months of them returning to work.
Flexible working changes
Employers will have to explain why it was reasonable to refuse a flexible working request.
Other major changes include...
Introduction of new collective consultation thresholds in collective redundancy situations
Mandatory gender pay gap and menopause action plans
Tighter regulations of umbrella companies
And more...
Key Concerns Raised About the Employment Rights Bill
68% of respondents believe the Employment Rights Bill will negatively impact businesses in the UK, while only 10% see it as having a positive effect. For a detailed analysis of the findings, explore our full report: Employment Rights Bill Survey Reveals UK Business Concerns.
Lending to the Bill’s intricate nature, it consists of 173 statutory instruments—that’s 173 individual pieces of legislation required to bring the Bill into effect.
As we’ve seen with the debate surrounding the right to unfair dismissal; uncertainty clouds this legislative reform.
With so much yet to be cleared up by secondary legislation, this lack of clarity is a direct problem for businesses.
Get expert advice on the new Employment Rights Bill with Peninsula
With so many new and updated legal responsibilities on the horizon, you need to prepared.
Peninsula is here to provide expert advice on how to navigate major employment law changes in your business. Our advisers are on hand to provide 24-hour HR advice – helping you to keep your business safe from risk, so you can focus on growth and success.
Want to find out more? Book a free consultation with our expert HR consultants today.
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