The Employment Rights Bill: What UK Employers Need to Know Ahead of 2026 Reforms
- Karen Gittins
- 5 days ago
- 3 min read
The UK’s Employment Rights Bill, introduced in October 2024, represents the most substantial overhaul of employment law in decades. Aimed at enhancing job security, promoting fairness, and modernising workplace practices, the bill introduces a series of reforms to reshape the employer-employee relationship. While some provisions are already in effect, most are scheduled for implementation in 2026, allowing businesses time to adapt.
Key Reforms and Their Implications
1. Unfair Dismissal Protection from Day One
Currently, employees must complete two years of service to claim unfair dismissal. The new bill eliminates this qualifying period, granting protection from the first day of employment. A structured probationary period, likely up to nine months, will allow for a simplified dismissal process during this initial phase.
2. Regulation of Zero-Hour Contracts
The bill seeks to end exploitative zero-hours contracts. Workers consistently working regular hours over a defined period will be entitled to contracts reflecting their typical schedules. Employers will also be required to provide reasonable notice for shifts and compensate workers for last-minute cancellations.
3. Enhanced Sick Pay Provisions
Statutory Sick Pay (SSP) will be accessible from the first day of illness, removing the current three-day waiting period. Additionally, the lower earnings limit for SSP eligibility will be abolished, broadening access to more workers.
4. Expansion of Family Leave Rights
Employees will gain immediate eligibility for paternity and parental leave, eliminating existing service requirements. Bereavement leave provisions will also be extended to cover a wider range of circumstances, including pregnancy loss before 24 weeks.
5. Prohibition of 'Fire and Rehire' Practices
The bill introduces stringent regulations around the practice of fire and rehire. It will be deemed automatically unfair to dismiss an employee in a fire and rehire scenario unless the employer is facing dire financial circumstances and the need for variation cannot be reasonably avoided.
6. Strengthening of Trade Union Rights
Trade unions will receive enhanced rights, including easier access to workplaces and simplified processes for industrial action. Electronic balloting will be permitted, and certain restrictions introduced by previous legislation will be repealed.
7. Establishment of the Fair Work Agency
A new enforcement body, the Fair Work Agency, will be created to uphold workers' rights, including holiday pay and minimum wage compliance.
Implementation Timeline
October 2024: Bill introduced to the House of Commons.
March 2025: Passed Third Reading in the Commons; introduced to the House of Lords.
March 2025: Second Reading in the Lords scheduled.
2026: Majority of reforms expected to come into effect following further consultations and the development of detailed regulations.
Preparing for the Changes
Employers should take proactive steps to ensure compliance with the upcoming reforms:
Review Employment Contracts: Assess current contracts, especially those involving zero-hour arrangements, to align with the new requirements.
Update HR Policies: Revise policies related to sick leave, family leave, and dismissal procedures to reflect the forthcoming changes.
Train Management: Educate managers and HR personnel on the new rights and obligations to ensure consistent application across the organisation.
Engage with Trade Unions: Establish or strengthen relationships with trade unions to facilitate smooth transitions and address potential concerns collaboratively.
The Employment Rights Bill signifies a transformative shift in the UK's employment landscape. By understanding and preparing for these changes, employers can navigate the new legal framework effectively, ensuring compliance and fostering a fair and supportive workplace environment.
Note: This article is intended for informational purposes and does not constitute legal advice. Employers are encouraged to consult with legal professionals to understand the specific implications for their organisations
Sources. https://www.lewissilkin.com/en/insights/2025/03/13/whats-in-the-employment-rights-bill?
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