The Employment Rights Bill is about to become law – What happens now?

For months, the Employment Rights Bill has been battling its way through Parliament, with the House of Lords proving a challenging barrier.

There was some concern that the Bill would not be finalised before the end of the year, but the withdrawal of the last amendment has ensured the Bill will become law in its current state.

With new changes imminent, it is time that businesses prepare for the Bill to become law.

What happens when the Employment Rights Bill becomes law?

Much of the Employment Rights Bill will require additional consultation and legislation to become law.

However, there are some key aspects that will begin as early as April 2026 and continue to be implemented until 2027.

One of the most high-profile changes was the recently altered approach to unfair dismissal protection.

We recently took a thorough look at the change and how businesses can prepare.

In short, the previous two-year threshold for unfair dismissal protection will be reduced to six months in a move that will redefine probationary periods.

This is going to be coupled with the right to a range of day one protections and rights, of which the unfair dismissal protection was originally a part.

This means that the rights that are applicable from day one will be:

• Parental leave
• Paternity leave
• Bereavement leave

Alongside this, Statutory Sick Pay (SSP) will need to be paid from the first day of sickness and the lower earnings limit is set to be removed.

When do the changes come into effect?

While exact timings may change, the Bill being passed now means that the Government can hit its target of getting reforms implemented in April 2026.

As such, the current projected timeline is as follows:

April 2026 will see:

• Day one paternity leave and unpaid parental leave rights
• Whistleblowing protections
• SSP reforms
• Voluntary creation of gender pay gap and menopause action plans
• Simplification of the trade union recognition process

October 2026 will see:

• Ban on fire and rehire
• Duty to inform workers of their right to join a trade union
• Strengthening of trade unions' rights of access

2027 will see:

• Unfair dismissal protection after six months
• Mandatory gender pay gap and menopause action plans
• Zero-hours contract reforms

How can businesses prepare?

Our expert HR team is on hand to support your business as you adapt to the changes introduced by the Employment Rights Bill.

It has been challenging to commit to preparations prior to the Bill being finalised, but that barrier has now been removed.

Knowing what is to come, businesses should seek advice from HR about reviewing employment contracts and HR policies and practices to ensure that compliance with the Bill will be possible.

Speak to our team today to get ready for the Employment Rights Bill.