Expert Opinion: When and what to prepare ahead of Employment Right Bill

With a range of changes to employment law currently moving through Parliament, Cornerstone Resources’ Rob Birley explains the timeline ahead of implementation of the Employment Rights Bill and what businesses can do to prepare.

When the Labour government came to power, they heralded that the Employment Rights Bill would be the most significant change to working practices for a generation.

Over the last year, the Bill has passed through the House of Commons and is currently in the House of Lords. Whilst there has been much speculation in the media as to what could happen, it is important to note that there is a long way to go. Following the House of Lords, the Employment Rights Bill must receive Royal Assent following the Commons’ review of any proposed amendments from the Lords. The Government have then promised consultation with business before the fine print in published.

The important thing to note is that there is no need to panic. Many of the most significant changes (such as day one rights) won’t now be implemented until 2026. But there are still things you can prepare for now.

Employment Rights Bill – April 2026

What we do know is that there will be changes to Statutory Sick Pay (SSP) from April 2026. Whereas there are currently 3 waiting days before SSP becomes payable, this will move to day one. Employees will also be eligible for Statutory Paternity and Parental pay from day one.

One of the most significant new developments is the introduction of the Fair Work Agency. The Department of Business and Trade describe the purpose of the Fair Work Agency as follows:

The Fair Work Agency (FWA) will bring together existing state enforcement functions and, over time, take on enforcement of a wider range of employment rights. This will be a single place where workers and employers can turn for help. It will improve efficiency by ensuring there is one leadership team to oversee work in line with a unified strategy. The FWA will aim to resolve issues upstream by supporting employers that want to comply with the law. But it will also have strong powers to investigate and take action against businesses that flout the law, to level the playing field for compliant businesses.

The FWA will have enforcement powers and will be able to inspect workplaces to ensure compliance with legislation.

Employment Rights Bill – October 2026

October 2026 will see the practice of Fire and Rehire banned as a means of changing terms and conditions. Hire and Fire has always been a controversial ‘nuclear’ option of pushing changes through and has never been one that we at Cornerstone would advocate. It is much more engaging to negotiate changes than to enforce them.

There will also be changes to Sexual Harassment legislation, including guidance on prevention of harassment (from 2027) that will detail steps employers should take to protect their teams. We await more detail on how this will work.

Employment Tribunal time limits are also likely to increase for most claims from 3 to 6 months.

Employment Rights Bill – 2027

2027 will see the introduction of day one rights. This means that employers won’t be able to dismiss employees with under 2 years service without cause. What we do know is that there will be a Statutory Probationary Period with some form of lighter touch dismissal proceedings. We don’t, however, know what this looks like as yet.

Other major changes are the end of exploitative zero hours contracts. However we don’t know exactly how ‘exploitative’ will be defined.

What can you do now?

Although there is much to be confirmed, there are steps you can take now. Some thoughts are below:

• Revisit your probationary process. We’d advise that for most roles, you implement a 6 month process. However, this can’t just be added to your contract, it needs to be properly monitored. Clear objectives with relevant support regularly reviewed is the mantra. Lazy dismissals of employees with less than 2 years service won’t work anymore.
• Sick pay processes will need to change from next April. As SSP can’t be reclaimed, tighter management of sickness absence is key. This doesn’t mean an end to compassionate leadership but implementing return to work interviews and tracking absence is going to be more important.
• Record keeping will become even more important. Breathe HR and other HR software solutions will help you to demonstrate compliance to the Fair Work Agency should they come to your business.
• If you haven’t assessed your risks yet, consider a Sexual Harassment Risk Assessment. The requirements are only going to get more onerous so why not get ahead of the curve and mitigate your risks now.