Big Changes Ahead: What the New Employment Rights Bill Means for Your Business

The Government has just released a roadmap for some of the biggest changes to UK employment law in decades - and the first phase kicks off in April 2026.

These updates, introduced under the new Employment Rights Bill, are all about improving fairness and protection for workers. But for business owners, especially those without a dedicated HR team, it means lots of change to how you manage your people, processes, and policies.

As HR experts, we're here to make sure you’re not caught off guard. Let’s break down what’s coming, when, and how you can start preparing now.

What’s changing, and when?

The new laws will be rolled out in phases to give businesses time to adjust. But the first round lands in less than a year.

April 2026: The first major shift

  • Statutory Sick Pay (SSP) will apply from day one - no more waiting period or lower earnings limit

  • Paternity and unpaid parental leave will also be available from day one of employment

  • Stronger protection for whistleblowers

  • A new Fair Work Agency will be set up to enforce rights at work

  • Easier trade union recognition and the introduction of electronic voting

  • Protective awards in redundancy cases will double

October 2026: Even more employer responsibilities

  • Legal requirement to take “all reasonable steps” to prevent sexual harassment - ncluding harassment by customers or third parties

  • A clampdown on fire and rehire practices

  • A Fair Pay Agreement body for adult social care

  • Tighter rules around tip-sharing, including consultation with staff

  • Expanded rights for trade union reps and members

  • Stricter rules for industrial action, dismissal protection, and tribunal timeframes

By 2027: Final phase of reforms

  • Day-one protection against unfair dismissal

  • Bereavement leave becomes a statutory right

  • Tighter controls on zero-hours contracts (ZHCs)

  • Stronger protections for pregnant employees and new mothers

  • Optional gender pay gap and menopause action plans

  • Overhaul of the industrial relations framework

What’s changing straight away?

Once the Bill receives Royal Assent (expected in July 2025), some changes will come into effect immediately:

  • Repeal of the Strikes (Minimum Service Levels) Act 2023

  • Changes to the Trade Union Act 2016

  • New protections for employees involved in lawful industrial action

What you can do now

The best thing you can do is start preparing early. Here’s what we recommend:

  • Stay Updated

Follow trusted HR news sources (or subscribe to our updates!) so you’re always aware of what’s coming next.

  • Review Your Current Policies

Take a look at contracts, sick pay entitlements, leave policies, and your approach to things like dismissal and flexible working.

  • Get the Right Support

If you’re unsure where to start or don’t have internal HR expertise, we can help you get ready without the overwhelm.

  • Keep Your Team in the Loop

Start communicating with staff now about the changes ahead. Transparency builds trust.

Final thoughts

These reforms are a huge step towards fairer and more secure workplaces - and that’s something we can all get behind. But they also bring real challenges for employers, especially around compliance and costs.

The good news? You don’t have to figure it all out on your own. Home of HR are on hand for any support you may need. 

Alice Hosker