The Employment Rights Bill introduces one of the most significant overhauls of workplace law in recent decades. For HR professionals, the challenge is not only understanding the reforms but also updating policies, contracts, systems, and training programmes in time for each commencement date.
Below is a practical guide to the core changes and the policies that must be refreshed.
1. Dismissal, Disciplinary and Probation Policies
Day-one unfair dismissal right (2027) with statutory probation periods.
Action:
Create a dedicated probation policy setting length, checkpoints, and “light-touch” dismissal processes.
Update disciplinary/capability policies to distinguish dismissals inside vs. outside probation.
Train managers to evidence suitability fairly while avoiding automatically unfair reasons (discrimination, whistleblowing, etc.).
2. Flexible Working
Refusals must now be reasonable, requiring more robust justifications.
Action:
Mandate impact assessments and trial alternatives before refusal.
Add options for modified arrangements (e.g. phased flexibility).
Require documented reasons linked to operational data.
3. Sickness Absence and Statutory Sick Pay (SSP)
From 6 April 2026: no waiting days; no lower earnings limit; low earners to receive 80% AWE (regulations pending).
Action:
Update absence triggers, certification, and return-to-work procedures.
Configure payroll/HRIS to calculate SSP from day one and apply new low-earner rules.
4. Zero/Low Hours, Scheduling and Agency Workers
Guaranteed hours after 12 weeks; notice/compensation for cancelled shifts; protections extend to agency staff.
Action:
Introduce guaranteed-hours review and contract variation processes.
Define “reasonable notice” of shifts and cancellation payments.
Update hirer–agency contracts to allocate responsibilities.
5. Family Leave and Bereavement
From 6 April 2026: day-one rights to paternity leave and unpaid parental leave.
New pregnancy loss bereavement leave is proposed.
Action:
Remove service thresholds in policies.
Add a dedicated pregnancy loss section with eligibility/pay rules once regulations finalise.
6. Pregnancy and Maternity Protections
From 2027: enhanced protections during pregnancy and maternity leave.
Action:
Embed early risk assessments and redeployment obligations.
Require legal review before redundancies or terminations involving protected staff.
7. Whistleblowing and Speak-Up
From 6 April 2026: sexual harassment disclosures = protected disclosures.
Action:
Expand categories to cover harassment; integrate with anti-harassment channels.
Train managers on anti-victimisation duties.
8. Anti-Harassment and Third-Party Harassment
From 1 October 2026: employers liable unless “all reasonable steps” taken; third-party liability returns.
Action:
Conduct harassment risk assessments.
Add third-party harassment clauses to supplier/venue contracts.
Track incidents with remediation logs.
9. Confidentiality, NDAs and Settlement Agreements
Clauses gagging harassment/discrimination disclosures will be void.
Action:
Revise templates and handbook clauses.
Provide explanatory notes on permitted disclosures (regulators, police, advisers).
10. Redundancy and Collective Consultation
From 6 April 2026: cross-establishment triggers and maximum protective award doubling (to 180 days).
Action:
Update trigger assessments, timetables, and governance sign-offs.
Refresh consultation packs and engagement plans.
11. Fire and Rehire
From 1 October 2026: tightly restricted, with unfair dismissal risks.
Action:
Build a change-management policy prioritising alternatives and phased changes.
Require Board approval and legal review before dismissals.
12. Industrial Relations and Union Access
Reforms expected on/soon after Royal Assent: 12-month mandates, 10-day strike notice, digital access rights.
Action:
Draft union access protocols (including digital).
Refresh recognition agreements and strike response playbooks.
13. Tribunal Time Limits and Records
Time limits extended to six months.
Action:
Adjust grievance/conciliation processes.
Extend document retention and litigation holds accordingly.
14. Equality Action Plans (250+ employees)
From 2027 (voluntary 2026): mandatory gender pay gap and menopause action plans.
Action:
Establish annual equality action plan cycles.
Build dashboards and staff engagement mechanisms.
15. Tips and Service Charges (hospitality sectors)
From 1 October 2026: new consultation and allocation rules.
Action:
Introduce a written tips policy.
Update payroll for compliant segregation and distribution.
16. Outsourcing and TUPE-Adjacent Protections
New duties on fair treatment post-outsourcing.
Action:
Insert equal treatment and monitoring clauses into outsourcing/MSA contracts.
Enhance supplier due diligence and reporting.
17. Umbrella Companies and Agency Chains
From April 2026: umbrella regulation; PAYE responsibility shifts to agencies/end clients.
Action:
Map supply chains, revise contracts, and audit pay flows.
Update onboarding to capture umbrella details.
18. Governance, Training and Communications
Commencement is staged: some reforms on Royal Assent, others April/Oct 2026, further in 2027.
Action:
Maintain a live implementation plan.
Keep version-controlled records of reviews, consultations, and training.
Publish employee communications aligned to each reform date.
Key Takeaway for HR
The Employment Rights Bill requires a wholesale review of HR policies, systems, and training. Early preparation is essential:
Audit existing policies now.
Phase updates to match commencement dates.
Train managers well ahead of go-live.
Keep clear records of every change.
By planning now, HR teams can minimise legal risk, maintain compliance, and demonstrate proactive workforce governance.
This article was created with insights from Lex HR - your always-on HR legal assistant. Lex HR helps HR professionals navigate complex employment law with confidence, providing real-time, reliable advice tailored to your needs. Try it free today and see how much easier compliance can be.
