In our recent webcast, Preparing for the New Employment Rights Bill, we unpacked one of the most significant proposed overhauls of UK employment law in a generation. The Employment Rights Bill will reshape the landscape for HR teams, covering everything from zero-hours contracts and flexible working to statutory sick pay, family leave, and unfair dismissal.
If you missed the webcast, here’s your essential overview of the key changes — plus practical steps on how HR can get ahead.
Why the Employment Rights Bill Matters
The Employment Rights Bill aims to modernise the Employment Rights Act 1996, giving workers more predictable terms, stronger protections, and greater flexibility. For HR leaders, it means new obligations across contracts, scheduling, training, and reporting.
With major provisions expected to phase in from 2026 onwards, organisations that prepare early will gain a strategic edge — minimising disruption, managing costs, and building trust with their workforce.
Key Changes HR Should Prepare For
| Topic | Current Law (ERA 1996) | Changes in the Bill | Awaiting Regulations? | Key Business Implications | Indicative Timescale |
|---|---|---|---|---|---|
| Zero/Low-Hours — Guaranteed Hours | No right to be offered contracted hours reflecting actual hours worked (predictable terms regime exists separately) | New right to be offered guaranteed hours after each reference period for qualifying workers; agency parity; repeal of Workers (Predictable Terms) Act 2023 | Yes — reference period rules; eligibility thresholds; form of offer | Budget for uplift in contracted hours; set a cyclical offer process; data capture on actual hours | From 2026 (phase-in likely) |
| Shift Notice & Cancellation Pay | No universal statutory “reasonable notice” or statutory pay for cancelled/moved shifts | Duty to give reasonable notice; presumption notice is not reasonable if below a specified period; payment due for cancelled/moved/curtailed shifts | Yes — define “short notice” period and payment parameters | Build rostering thresholds; automate cancellation payments; manager guidance to avoid last-minute changes | From 2026 (after consultation) |
| Flexible Working | Employer may refuse on listed grounds; procedural duties apply | Employer may refuse only if on listed grounds and refusal is reasonable; SoS may set required steps | Yes — steps/ET standards may be set | Tighten decision records; train managers; expect more successful challenges | 2026 tranche likely |
| Statutory Sick Pay (SSP) | 3 waiting days; LEL applies; flat rate | No waiting days; no LEL; rate = lower of £118.75/wk or 80% of earnings (GB & NI) | Minimal (mainly commencement) | Payroll/config updates; comms to staff; more day-one absence cover cost | Could commence earlier (from 2026) |
| Parental Leave | 1 year’s service required | Remove qualifying period | Possibly for detailed rules | Wider eligibility; review cover planning and policies | 2026 tranche likely |
| Paternity Leave | 26 weeks’ service for some entitlements; timing limitations | Remove qualifying period; allow paternity leave after shared parental leave | Likely for mechanics | Update handbooks; system changes for sequencing leave | 2026 tranche likely |
| Bereavement Leave (beyond parental) | Statutory parental bereavement leave exists; broader bereavement not universal | Create statutory bereavement leave and adjust tax cross-references | Likely | New leave category; policy drafting needed | 2026 tranche likely |
| Sexual Harassment — Employer Duty | “Reasonable steps” defence; no general proactive duty; third-party harassment repealed in 2013 | Duty to take all reasonable steps; third-party harassment liability; SoS can specify steps | Yes — code/steps via regs | Strengthen risk assessments, training, reporting & contractor controls | 2026 (code-dependent) |
| NDAs on Harassment/Discrimination | NDAs can limit disclosures (subject to whistleblowing etc.) | NDA terms void insofar as they gag harassment/discrimination allegations or the employer’s response, with limited regulated exceptions | Yes — scope of “excepted agreements” | Rewrite settlement/contract clauses; counsel training | 2026 tranche likely |
| Whistleblowing — Sexual Harassment | Qualifying disclosures list doesn’t expressly include sexual harassment | Adds sexual harassment to protected disclosures | No (simple addition) | Align whistleblowing channels with Dignity at Work processes | With main harassment tranche (from 2026) |
| Unfair Dismissal Threshold | General right after 2 years’ service | Lowers to 6 months; creates initial period framework where regs can shape fairness tests in early dismissals | Yes — initial-period rules | Rethink probation design; earlier documentation/coaching and process | Often flagged for 2027 |
| Dismissal During Pregnancy/After Family Leave | Mixed protections; automatic unfair in some cases | New/strengthened protections in Part 1 (clauses 26–27) | Possibly | Update manager guidance; legal review of case handling | 2026–27 (phased) |
| “Fire and Rehire” Constraints | No standalone statutory bar (Acas guidance applies) | New protection against dismissal for failing to agree to variation of contract, etc. Details to be clarified in regs/guidance | Likely | Use structured consultation & alternatives; legal review of variation strategies | 2026–27 (phased) |
| Collective Redundancy | Part IV TULRCA thresholds/triggering rules | Extended application + a protected period; ships’ crew notifications. Exact contours to follow | Yes | Re-set thresholds/aggregation tests; timeline planning | 2026–27 (after consultation) |
| Annual Leave Records | No universal statutory duty to keep detailed annual-leave records | New statutory duty to keep records | Likely for format/detail | HRIS changes; retention policy updates | 2026 tranche likely |
| Trade Unions & Industrial Action | Current access/recognition rules; minimum service levels provisions on the statute book | Wider union access, revamped recognition regime; repeal of minimum service levels provision; changes to ballots/facilities/CO powers | Some — to operationalise recognition/access | IR strategy refresh; facility time data/transparency; ballot compliance checks | 2026–27 (phased) |
How HR Teams Can Get Ahead
Here’s how HR teams can act now — drawn from our webcast and implementation guide:
Audit your current workforce arrangements
Review contracts, shift practices, and policies against the forthcoming requirements for predictable hours, flexible working, and leave. Identify where changes will be needed.
Strengthen your data and systems
Ensure your HRIS can capture accurate data on working hours, shift notices, and annual leave. Automating these processes will make compliance easier and auditable.
Plan workforce budgets early
Model the financial impact of higher contracted hours, expanded leave, and day-one sick pay. Build these into 2026-27 budgets to avoid last-minute cost pressure.
Train line managers and HR business partners
Most compliance risks will arise at line-manager level. Upskill your teams now on managing flexible working, preventing harassment, and documenting fair dismissals.
Refresh your employment policies and contracts
Prepare draft updates for SSP, flexible working, leave, NDAs, and dismissal procedures so you’re ready to implement when secondary regulations are published. Our HR software makes it easy with a custom contract and policy generator featuring ready-made templates created by award-winning lawyers.
Engage proactively with employee representatives
With enhanced trade union access and new collective redundancy duties, early collaboration will help build trust and prevent disputes.
Keep Learning — and Stay Ahead of Changes
Our HR software is always updated with the latest employment law changes and guidance, legally backed by our team of employment lawyers. Our award-winning lawyers are also available through our consultancy to help with any HR questions. Book an intro call! Purchase any e-learning course and get our HR software free — or from just £1 per person per month.
We shared this update in our recent webcast, Preparing for the Employment Rights Bill. Catch the replay if you missed it! Join our next live session on our events page.