The Employment Rights Bill is poised to bring the most sweeping reforms to UK employment law in over a decade. With significant changes to flexible working, dismissal rights, contract variations, family-friendly entitlements, and more, HR professionals must act now to prepare their organisations for what lies ahead.
Below is a comprehensive breakdown of the key reforms, practical implications for HR teams, and a checklist to ensure compliance.
Key changes at a glance
Fire and rehire practices under scrutiny
Employers can no longer rely on “fire and rehire” tactics to push through contractual changes. Dismissals linked to refusal of new terms will be automatically unfair in most cases—unless the employer can prove that:
The changes were essential to tackle serious financial risk to the business
All reasonable alternatives were explored
Meaningful consultation was undertaken with employees and/or unions
Tribunals will scrutinise the depth of consultation, the availability of alternatives, and whether the employer acted fairly and transparently. Early House of Lords amendments may refine the scope of these provisions—for example, by limiting automatic unfairness to major changes (pay, hours, location) or creating carve-outs for SMEs.
Action for HR: Review all flexibility clauses in employment contracts and ensure that internal processes require early, detailed consultation with staff before proposing any contractual changes.
Family-friendly reforms – expanding rights and employer duties
From pregnancy protections to bereavement leave, the Bill significantly expands employer obligations:
Pregnancy and maternity protections will now cover all dismissals (not just redundancies) during and after pregnancy
Bereavement leave entitlements are broadened to include any bereaved individual—not just parents—allowing at least one week of statutory leave per bereavement
Employers with over 250 employees may be required to publish annual gender equality and menopause action plans, with clear expectations around support measures and closing pay gaps
Action for HR:
Audit and update family leave policies
Start preparing gender equality and menopause support frameworks
Strengthen your documentation around decisions affecting pregnant or bereaved employees
Flexible working – a shift toward employee empowerment
The Bill marks a fundamental shift in how flexible working requests must be handled:
Employees now have day-one rights to request flexible working
Employers can only refuse on specified statutory grounds, and must provide a clear and reasonable explanation
Tribunals will assess whether employers acted reasonably, not just followed process
This raises the bar for employers and makes it essential to properly document all requests, the decision-making rationale, and how the business impact was evaluated.
Action for HR: Establish a transparent and well-documented flexible working process. Retain records of every request and response, and ensure line managers are trained to assess applications fairly and consistently.
New legal landscape – what else is changing?
1. Day-One Unfair Dismissal Rights
Unfair dismissal protections will apply from day one of employment, with a possible statutory probationary period of up to nine months (details pending).
2. Extended Tribunal Claim Periods
Employees will now have six months (up from three) to bring most tribunal claims—making it even more vital to maintain good record-keeping and documentation.
3. Creation of the Fair Work Agency
This new body will:
Enforce sick pay, holiday pay and other statutory entitlements
Bring claims on behalf of workers
Monitor employer compliance
4. Statutory Sick Pay Reforms
SSP will be payable from day one, and low earners will receive 80% of average earnings or the statutory rate—whichever is lower.
5. Zero-Hour and Agency Worker Protections
Employers must now:
Offer guaranteed hours to long-term zero-hour staff
Give reasonable notice of shifts (and compensation for late changes)
Extend protections to agency workers
6. Collective Redundancy Consultation
Consultation obligations are broadened, and the maximum protective award for non-compliance doubles to 180 days’ pay per affected employee.
Your Employment Rights Bill Compliance Checklist
Review and update employment contracts in light of new statutory provisions
Prepare for enhanced consultation and documentation requirements around any contractual changes
Develop or update gender equality and menopause action plans (for employers with 250+ employees)
Ensure family-friendly and bereavement leave policies are updated and compliant
Document and justify all flexible working decisions – and retain records
Monitor ongoing updates, and ensure HR teams attend webinars, Q&A sessions, and briefings
Final thoughts
The Employment Rights Bill represents both a challenge and an opportunity for HR professionals. With stronger protections for employees and more robust enforcement mechanisms, organisations must go beyond compliance to build a culture of fairness, transparency, and accountability.
Proactive preparation—especially in contracts, consultation processes, documentation, and policy development—will help ensure you’re not just ready for the new rules, but leading the way in good employment practice.
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.
