Employment Rights Bill: what’s coming, and when?

There’s been a major update on the timeline for the government’s new Employment Rights Bill. Aiming to both support economic growth and empower workers, the changes are set to roll out in stages from this year until 2027.

In its newly-released roadmap, Whitehall has outlined which reforms are on the bill and when they’ll be implemented. 

The ambitious package will modernise unfair working practices, such as zero-hour contracts, eligibility for Statutory Sick Pay (SSP), and unfair dismissal. 

All industries will be affected but retailers and hospitality operators in particular should take note. Pubs, bars, restaurants, and shops will be especially affected by the changes due to their high reliance on zero-hour contracts, tipping culture, and flexible shifts. 

What’s changing (and when) in the Employment Rights Bill?

After announcing the Employment Rights Bill in October last year, the government has now released a comprehensive roadmap for its implementation. With such an ambitious roster of changes, the reforms will be rolled out in phases. 

Here is when employers can expect each change to take effect:

Immediate (once granted Royal Assent):

• Some recent union restrictions (from 2016 and 2023) will be removed, meaning workers involved in strikes have more legal protections
• Striking workers will have protection from being sacked for the whole time of a legal strike and even after it ends
• If an employee is dismissed mainly because they joined protected industrial action, that dismissal will automatically be unfair

From April 2026:

• The earnings threshold and three waiting days for SSP will be removed, with eligible employees now able to receive SSP from their first full day of sickness absence
• Employees will be able to give their employer notice that they will be taking paternity and unpaid parental leave from day one in a job
• Whistleblowers in your business will be protected from retaliation. Protections will also extend to include the prevention of sexual harassment
• A new body called the Fair Work Agency will monitor and enforce workplace rights, so small businesses may be checked for compliance
• The maximum period of the protective award in collective redundancy will be doubled, so the compensation period workers can get will be twice as long
• Easier processes for unions to be recognised and vote on issues, including electronic and workplace ballots, will be introduced

From October 2026:

• Legislation will be introduced to ban ‘fire and rehire’; a practice where businesses cut staff to rehire new workers on worse terms to cut costs
• Employees will be consulted on how tips are shared out in the workplace
• You’ll be required to take ‘all reasonable steps’ to prevent sexual harassment in your workplace, and you’ll have a new duty to prevent third-party harassment by clients, customers, or contractors
• Union reps will have stronger protections, including access to paid time off and facilities to perform their duties
• Voluntary gender pay gap and menopause action plans will be introduced

In 2027:

• Pregnant employees and new mothers will be better protected against dismissal
• Workers will have the right to take time off when close family members die
• Exploitative zero-hours contracts will be a thing of the past, and contracts must outline predictable hours
• Staff will be protected from unfair dismissal from their first day of work
• Employees will be able to request flexible hours more easily
• Gender pay gap and menopause action plans will be made mandatory, after being introduced voluntarily in April 2026
• Rules around preventing harassment in the workplace will be clearer
• Rules for working with unions and employees will be updated for modern workplaces

What employers need to do

It’s wise to begin reviewing your contracts and shift practices before the changes begin rolling out later this year. Pay special attention to practices around sick leave and paternity / parental leave, as laws around these are set to change imminently.

In addition, updating your payroll and HR systems ahead of the changes to SSP and parental leave will help minimise headaches later down the line. These changes are set to take effect from April next year, which will roll around quickly.

While reforms around tipping, harassment, and flexible working will come in later 2026 and 2027, it won’t hurt to start looking at your policies around these already. 

Given that numerous changes are underway, it’s smart to begin training managers on the reforms so they are well-informed once they become set in stone. Being proactive will always help ensure that transition periods run much more smoothly.

Why it matters for small businesses

The reforms aren’t optional, and failing to comply can lead to costly tribunal claims, fines, or damage to your business’s reputation.

Businesses are already facing tough challenges, from tax hikes to shrinking profit margins, so the last thing you need is extra pressure like legal disputes or recruitment headaches. Non-compliance with the new rules will only exacerbate these problems by increasing staff turnover, recruitment costs, and the risk of lawsuits.

But don’t stress, the phased rollout of the reforms gives you plenty of time to adapt, as long as you start in good time. Following the new rules not only reduces risk, but it can also boost staff morale, retention, and your business’s reputation in a competitive job market.