The New Employment Rights Bill: A Roadmap for UK Employers

The UK government has announced a significant overhaul of employment law with the new Employment Rights Bill. Aiming to modernise workplace practices and strengthen worker protections, the changes will be rolled out in phases between now and 2027.

For business owners, staying ahead of these reforms is crucial. Non-compliance can lead to costly tribunals and damage your reputation, while proactively adapting can boost staff morale and retention.

To help you prepare, we’ve broken down the government's roadmap into a clear timeline. Here are the key changes and when they are expected to take effect.

Timeline of Key Changes

Immediate Changes (Once Royal Assent is granted)

Industrial Action: Workers will have greater legal protection from dismissal when taking part in lawful strikes. A dismissal will be automatically unfair if the primary reason is the employee's participation in protected industrial action.

From April 2026

• Statutory Sick Pay (SSP): SSP will be payable from the first full day of sickness. The three 'waiting days' and the lower earnings threshold for eligibility will be removed.

• Paternity & Parental Leave: Employees will be able to give notice for paternity and unpaid parental leave from day one of their employment.

• Whistleblower & Harassment Protection: Protections for whistleblowers will be strengthened to shield them from retaliation. These protections will also be extended to include the prevention of sexual harassment.

• Collective Redundancy: The maximum compensation period (protective award) for collective redundancies will be doubled.

• Union Recognition: Processes for trade unions to gain recognition and conduct ballots will be simplified, including the introduction of electronic and workplace ballots.

• New Enforcement Body: A new 'Fair Work Agency' will be established to monitor and enforce workplace rights, with the power to check businesses for compliance.

From October 2026

• 'Fire and Rehire' Banned: The practice of dismissing staff and rehiring them on less favourable terms will be outlawed.

• Tipping and Gratuities: Employers will be required to consult with staff on how tips are distributed fairly.

• Duty to Prevent Harassment: Employers will have a new legal duty to take 'all reasonable steps' to prevent sexual harassment. This includes a new duty to prevent harassment from third parties like customers or clients.

• Union Representatives: Protections for union reps will be enhanced, including rights to paid time off and access to facilities to carry out their duties.

• Gender Pay & Menopause (Voluntary): Businesses will be encouraged to introduce voluntary gender pay gap reporting and menopause action plans.

Coming in 2027

• Zero-Hour Contracts: Exploitative zero-hour contracts will be banned. All contracts must provide predictable hours.

• Unfair Dismissal: Staff will be protected from unfair dismissal from their first day of work.

• Flexible Working: The right to request flexible working will be made easier for employees.

• Pregnancy & Maternity: Pregnant employees and new mothers will receive greater protection against redundancy and dismissal.

• Bereavement Leave: A new statutory right to time off will be introduced for employees following the death of a close family member.

• Gender Pay & Menopause (Mandatory): The voluntary action plans introduced in 2026 will become mandatory for qualifying businesses.

How Your Business Can Prepare

While some changes are a few years away, the phased rollout gives you time to adapt. We recommend taking proactive steps now:

• Review Your Contracts: Start assessing your employment contracts, especially concerning working hours, sick pay, and parental leave policies, to ensure they align with the upcoming changes.

• Update Your Systems: The changes to SSP and parental leave in April 2026 will directly impact your payroll. Updating your payroll and HR software in advance will prevent disruption.

• Assess Company Policies: Begin reviewing your internal policies on tipping, harassment, and flexible working requests so you are ready when these reforms come into force.

• Train Your Managers: Ensure your management team is aware of the new duties and responsibilities, particularly regarding harassment prevention and flexible working.

Navigating these legislative changes can be complex.

At Zyla, we can help you understand the financial implications and ensure your payroll systems are fully compliant.

Get in touch with our team today for expert advice.