The Employment Rights Bill Roadmap

Introduction

The Employment Rights Bill is the most significant package of employment law reform in decades. The Government has now published its implementation roadmap, setting out how these wide ranging changes will be phased in between 2025 and 2027.

While the measures are being staggered, the reforms are extensive and employers should begin preparing now. Below, we break down the key changes, what they mean in practice, and how businesses can manage the risks.

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Immediate changes on Royal Assent

When the Bill becomes law, the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016 will be repealed. This means those laws will be cancelled and will no longer have any legal effect.

At the same time, employees will gain stronger protection from dismissal when taking part in industrial action. However, the precise detail of these new protections and how tribunals will apply them will need to be set out in secondary legislation.

Tip: If you have unionised staff and you recognise a trade union, now is the time to review your industrial relations strategies and ensure managers understand that dismissals linked to industrial action will soon carry higher risk.

Reforms in April 2026

From April 2026, several headline changes take effect:

• Paternity and unpaid parental leave will become day one rights
• Statutory Sick Pay will be broadened by removing both the lower earnings limit and the waiting period
• The maximum period of protective awards for collective redundancies will be doubled
• Enhanced whistleblowing protections will be introduced
• The new Fair Work Agency will begin operating
• Reforms to union recognition and balloting will also take effect.

Commencement regulations are needed to implement the sick pay changes and protective awards. We are also expecting further clarity on how the whistleblowing protections will work in practice and the scope of the Fair Work Agency’s enforcement powers.

Tip: Start planning now for the costs of wider sick pay, particularly for lower paid or casual workers. Redundancy policies should also be reviewed as the doubling of protective awards significantly increases potential liabilities. Employers should also audit whistleblowing policies and reporting lines to ensure they meet the forthcoming standards.

Reforms in October 2026

October 2026 will bring further measures into force:

• Restrictions on fire and rehire practices
• Rules on fair distribution of tips will be tightened
• Employment Tribunal time limits will be extended
• Trade union representatives will receive stronger protection
• Sexual harassment protections will expand to cover third party harassment by customers and service users.

Further Regulations will define which contractual changes are “restricted variations” for fire and rehire purposes and how the serious financial distress defence will apply. Routine contractual changes outside the restricted list will still need to follow strict consultation processes, with tribunals applying a tougher fairness test. Consultation is also expected on the extended tribunal time limits.

Tip: Review your grievance and harassment policies now to ensure they address behaviour by clients, contractors, and service users, not just staff. Also ensure that your managers are trained on the best practice consultation for contractual changes.

Reforms in 2027

By 2027, several major changes will complete the reform package:

• Day one unfair dismissal protection for all employees
• Stronger redundancy protection for pregnant employees and new mothers
• Restrictions on exploitative zero hours contracts
• Expanded flexible working rights.

Regulations are needed to define what will count as “reasonable notice” for shift allocation and the level of compensation for cancelled shifts. We also await details on how the new probationary period system will interact with day one unfair dismissal rights. Employers should expect to need more structured probation reviews with clear records of performance discussions.

Tip: Start reviewing use of zero hours contracts and prepare for a shift towards guaranteed hours models. Consider updating your probationary procedures now to build in formal review points and documentation.

Checklist for employers:

• ✅ Map the roadmap against your HR policies and contracts
• ✅ Budget for the financial impact of expanded sick pay and redundancy costs
• ✅ Review disciplinary, dismissal and probation processes in light of day one rights
• ✅ Update harassment policies to include third party conduct
• ✅ Train managers on consultation duties and handling union relations
• ✅ Audit whistleblowing policies and reporting channels
• ✅ Review use of zero hours contracts and plan for guaranteed hours models
• ✅ Create a compliance calendar for April 2026, October 2026, and 2027 milestones.

Conclusion

The Employment Rights Bill represents one of the most extensive packages of employment law reform in recent decades. The Government’s decision to phase implementation until 2027 provides employers with valuable time, but that time should be used wisely.

For most small and medium sized businesses, the central issues will be preparing for day one employment rights, the expansion of statutory sick pay, tighter controls on dismissal and contractual variation, new protections for pregnant employees, and the curbing of zero hours arrangements. Larger employers and those who recognise a trade union with unionised workforces will also need to take note of the wider reforms to trade union law, collective redundancy procedures, and whistleblowing.

The common thread is that the legal landscape is shifting towards stronger worker protections, greater enforcement, and higher risk for non-compliance. Employers who act early to review policies, contracts, and workplace culture will be better placed to navigate the changes and to demonstrate compliance when they take effect.