Employment Rights Bill – Final Countdown: What You Need to Know.

The UK is on the cusp of the biggest overhaul of employment law in a generation. The Employment Rights Bill has passed Parliament and is now backed by a clear Government roadmap for phased implementation from late 2025 through 2027. 

For founders, scale-ups, and SMEs, this is a vital moment to get ahead. The changes are real, sweeping and staggered. From day-one unfair dismissal rights to zero-hours reforms and sick pay from day one, the impact on people, systems, and costs will be significant. 

Here’s your founder-focused guide to what’s changing, when, and what to do now. 

Government Roadmap: Key Timings at a Glance:

• 📅 Late 2025: Industrial action protections, repeal of Trade Union Acts.

• 📅 April 2026: Sick pay changes, Fair Work Agency, paternity leave, tribunal time limits. 

• 📅 October 2026: Fire and rehire ban, harassment duties, union access, fair pay deals. 

• 📅 2027: Day-one unfair dismissal, ZHC ban, gender/menopause action plans, flexible working. 

Key Changes – What’s Coming and What to Do: 

1. ‘Day One’ Paternity & Unpaid Parental Leave. 

Working parents will gain access to paternity leave and unpaid parental leave from the start of employment, making flexibility and family support a legal baseline. 

📅 Coming: April 2026.

✅ What to do now: 

Update parental leave policies and contracts. 

• Communicate new entitlements during onboarding.

• Plan for increased short-term absence coverage.

2. Whistleblowing Protections Strengthened.

New laws will enhance protections for whistleblowers, ensuring safe, retaliation-free reporting of wrongdoing at work. 

📅 Coming: April 2026 

✅ What to do now: 

• Review and relaunch your whistleblowing policy.

• Train managers on how to handle disclosures. 

• Set up confidential reporting mechanisms.

3. Collective Redundancy: Broader Triggers, Bigger Penalties.

Making redundancies across multiple sites? You’ll need to consult collectively. And if you don’t? The protective award cap doubles to 180 days’ gross pay per employee.   

📅 Coming: April 2026 (initial); 2027 (threshold reform).

✅ What to do now:

• Track redundancies across all locations — not just by site. 

• Train managers on new consultation rules. 

• Budget for higher exposure during any restructure or cost-saving exercises. 

4. Sick Pay Starts from Day 1. 

Statutory sick pay will kick in from the first day of absence, and if earnings are lower than the flat rate, employees will get 80% of their normal weekly pay.  

📅 Coming: April 2026.

✅ What to do now:

• Recalculate your employment cost projections to reflect this change. 

• Prioritise mental wellbeing initiatives to help reduce absence rates. 

5. New Fair Work Agency & Tougher Enforcement.

A new watchdog will enforce compliance with minimum wage, holiday pay, and sick pay rules. Failure to comply? Expect penalties of up to 200% of underpayments and unlimited fines. 

📅 Coming: April 2026.

✅ What to do now:

• Audit your holiday pay calculations and processes. 

• Build a centralised system to track holiday records — you must retain them for six years. 

• Check your payroll compliance — even small errors could now trigger big risks. 

6. Ban on Fire & Rehire Practices. 

Employers will be banned from dismissing staff and offering re-employment on worse terms – a controversial tactic now firmly outlawed.

📅 Coming: October 2026 

✅ What to do now:

• Review restructuring and contract change procedures.

• Seek legal advice before making contractual changes. 

• Train leaders in alternative change management strategies.

7. Duty to Prevent Sexual Harassment.

Employers must take “all reasonable steps” to prevent sexual harassment at work — including by third parties (e.g. clients, customers). 

📅 Coming: October 2026 – 2027.

✅ What to do now: 

• Introduce or update anti-harassment and dignity at work policies.

• Conduct workplace training on acceptable behaviour and bystander action. 

• Assess third-party risks in client-facing roles and venues.

8. Zero-Hours & Casual Work Reform. 

Employers must offer guaranteed hours to zero-hours staff based on their average hours over 12 weeks. Agency workers get new protections too — and the end hirer (you) takes on new duties around notice and fairness. 

📅 Coming: 2027. 

✅ What to do now: 

• Review how you use casual and flexible workers. 

• Start planning shift structures to meet the guaranteed hours threshold. 

• Prepare for agencies passing on liability for short-notice cancellations — you may need to renegotiate terms. 

9. Day One Unfair Dismissal Rights & Extended Claim Periods. 

Employees will gain unfair dismissal rights from day one, and the window for bringing a tribunal claim will double to 6 months.  

📅 Coming: 2027.

✅ What to do now: 

Action steps: 

• Rethink your hiring process — include cultural fit checks and multiple interviewers. 

• Set up systems to capture manager notes and performance feedback in real time. 

• Revamp probation periods — use structured 30-60-90 day check-ins with clear metrics. 

10. Workplace Culture Reforms.

Upcoming reforms will include mandatory gender pay gap and menopause action plans, a ban on blacklisting and tighter regulation of umbrella companies, new rights to bereavement leave, and an expansion of flexible working entitlements. 

📅 Coming: 2026 (voluntary); 2027 (mandated). 

✅ What to do now:

• Begin shaping culture-focused policy updates. 

• Get ahead by piloting menopause or wellbeing frameworks.

• Align DEI strategy with evolving legal expectations.

11. Enhanced Trade Union Rights.
After the bill is passed, industrial action will get easier. Turnout thresholds are going. Ballot mandates will last longer (12 months), and only 10 days’ notice will be required before strikes. 

📅 Coming: 2025–2027 (phased).

✅ What to do now: 

• Invest in good union relationships and open dialogue. 

• Revisit your collective agreements — are escalation processes clear? 

• Build a resilience plan for handling strike action with less notice. 

How the Government will support implementation.

The roadmap confirms: 

• Phased consultations from Summer 2025 through early 2026. 

• Codes of Practice and guidance via Acas and other partners.

• Common commencement dates: 6th April and 1st October each year. 

• Time to prepare for SMEs and IT/payroll system upgrades. 

• A commitment to enforcement readiness: tribunals, Acas, and the Fair Work Agency will be scaled to support compliance. 

✅ Final thoughts for founders. 

The Employment Rights Bill is a redefinition of employer obligations in the UK. 

Don’t wait to get ready. Now’s the time to: 

✔️ Update contracts and handbooks.
✔️ Re-train managers and HR leads.
✔️ Audit workforce models and payroll.
✔️ Proactively brief Boards and investors on risk exposure. 

📩 Need a compliance roadmap tailored to your business? Let’s talk — before these reforms are already law.