The Employment Rights Bill: What Employers Need to Know
Navigating upcoming changes without the guesswork
It’s not law yet—but don’t ignore it
Despite all the headlines, the UK Employment Rights Bill is still moving through Parliament. Full rollout isn't expected until 2026, and even then, some proposals may be delayed or reshaped. Still, the direction of travel is clear—and forward-thinking employers would be wise to start preparing now.
This isn’t just about compliance. It’s about building a resilient, people-first business that’s ready for what’s next.
Why the Bill keeps evolving
The Bill is still in draft form, and like all major legislation, it’s going through multiple rounds of debate, review, and consultation. That includes feedback from unions, professional bodies, legal experts, and employer groups.
This iterative process explains why some provisions have been removed, others reworded, and new proposals added along the way.
It’s fluid—but not aimless. The overall emphasis is on improving worker protections, expanding access to rights, and raising expectations for employer conduct.
Key proposals emerging so far
Here’s what’s currently on the table (subject to further change):
Longer claim periods for tribunals: The time limit to bring a claim could increase from 3 to 6 months—meaning more time for disputes to surface.
Protections for agency workers: More flexible workers may gain the right to request consistent hours contracts.
Stronger safeguards during redundancies: The compensation window for collective redundancies may double—from 90 to 180 days.
Tighter strike and union rules: Proposed changes include more notice for industrial action (10 days instead of 7) and a 12-month limit on strike mandates.
New sick pay structure for lower earners:
Workers earning below the lower earnings limit (currently £123 per week) may receive Statutory Sick Pay at 80% of their average weekly earnings, or the standard SSP rate—whichever is lower.
This could significantly affect part-time, casual, or low-income workers—and place a new administrative burden on employers.
There are also ongoing discussions around digital voting for unions and additional employer responsibilities during large-scale redundancies.
What should employers be doing now?
Even if the final details are still taking shape, there’s plenty you can (and should) be doing now to get ahead of the curve.
1. Reduce risk around employee disputes
If the tribunal window extends and claims become easier to pursue, prevention becomes non-negotiable.
Upskill your managers in handling absence, underperformance, grievances and conduct cases with clarity and confidence.
Invest in respectful workplace training, especially around bullying, harassment, and dignity at work.
Strengthen recruitment practices so job expectations are clear from day one, and hiring decisions are based on more than gut feel.
2. Prepare for rising SSP costs
If sick pay becomes payable earlier—or covers more people—there could be real budget implications.
Review your sickness absence policy to ensure it’s not just compliant, but consistently applied.
Give line managers the tools to handle absence with confidence and compassion.
3. Reassess your use of zero hours contracts
The Bill signals a push toward more predictability and fairness for flexible workers.
Employees may gain rights to guaranteed hours based on their average over 12 weeks.
Cancelled shifts could require full pay if notice isn’t reasonable.
Now’s the time to model how these changes would impact your workforce plans—and your financials.
The smart move isn’t to wait
There’s always a temptation to hold fire until legislation is final. But by then, businesses are reacting under pressure.
Instead, use this transition period to:
Audit your current policies and contracts
Brief your managers on what’s changing
Start building a culture of proactive compliance, not defensive correction
How Ysobelle Edwards Ltd can support you
We help SMEs future-proof their people strategies—not just for today, but for where the law and the workforce are heading.
Whether you need help reviewing documentation, training your managers, or building a more sustainable approach to flexibility and fairness, we’re here to help you stay one step ahead.
Want to talk through what this Bill could mean for your business?