The Employment Rights Bill has now passed through Parliament and is awaiting Royal Assent. Once that final constitutional step is completed, it will become law, marking one of the most significant reforms of UK employment legislation in a generation.

Much of the public discussion has focused on political debate or headline-grabbing promises. For businesses, however, the priority is far more practical: what has actually been approved, when will it take effect, and what needs to be done now to manage risk and cost?

This article sets out the facts as they stand and explains how businesses can prepare for what comes next, supported by the right independent HR expertise.

 

A Bill That Is Now Settled in Law

The first point of clarity is this: the Employment Rights Bill is no longer a proposal. Parliament has approved it in its final form. While many provisions will be phased in over time, the content of the legislation is settled.

For employers, the question is no longer if change is coming, but how well prepared they will be when it does.

 

The Key Changes Parliament Has Approved

Earlier Unfair Dismissal Rights

One of the most significant changes is to unfair dismissal protection:

• The qualifying period will reduce from two years to six months
• The statutory cap on unfair dismissal compensation will be removed
• “Fire and rehire” will generally be treated as automatic unfair dismissal, except in tightly defined circumstances

Parliament explicitly rejected day-one unfair dismissal rights, settling on the six-month threshold as a compromise.

For businesses, this shortens the period in which termination decisions typically carry lower legal risk and increases potential exposure where process, documentation and manager capability are weak.

 

Day-One Family Leave Rights

The Bill introduces day-one eligibility for:

• Parental leave (ordinary parental leave)
• Paternity leave
• Expanded bereavement leave

These are not new rights, but removing service thresholds means policies, contracts and manager understanding must be updated to ensure consistent application.

 

Statutory Sick Pay Reform

Statutory Sick Pay will change in two fundamental ways:

• SSP will be payable from the first day of sickness
• Eligibility will be widened, including changes to the lower earnings threshold (including removal of the lower earnings limit)

While technical detail will be set out in regulations, the direction is clear: SSP will apply more widely and increase cost for employers, particularly in sectors with high absence levels.

 

Zero-Hours and Insecure Work Protections

New rights are introduced for workers on insecure contracts, including:

• A right to request predictable working hours
• Compensation for late cancellation of shifts
• Extended protections for agency workers

This is not a ban on zero-hours contracts, but it does require businesses to be more deliberate and transparent in how flexible labour is used.

 

Trade Union and Enforcement Reform

The Bill also:

• Repeals large parts of the Trade Union Act 2016 (reversing several 2016 restrictions)
• Makes strike ballots easier, including moves towards electronic voting
• Strengthens protections for lawful industrial action
• Establishes a Fair Work Agency with proactive enforcement powers

This signals a shift away from complaint-led enforcement towards closer regulatory scrutiny.

 

When Will These Changes Take Effect?

Implementation is deliberately phased, with some dates now being stated more clearly in published guidance.

April 2026 (expected – commonly aligned with 6 April):

• Day-one paternity leave and day-one ordinary parental leave
• SSP paid from day one and removal of the lower earnings limit

 

From 2026 (phased, via commencement regulations):

• Trade union law changes and set-up of the Fair Work Agency (some elements expected to begin soon after Royal Assent, others following regulations/codes)

 

From 1 January 2027 (widely briefed):

• Six-month unfair dismissal qualifying period (replacing the current two years)
• Removal of the unfair dismissal compensation cap

 

Late 2026 into 2027 (subject to commencement regulations):

• Fire-and-rehire measures and predictable hours / insecure work protections (timings are expected to be staged)

This gives businesses time to prepare – but it also creates a clear window for action now, while change can still be planned rather than reacted to.

 

What This Means for Businesses – and How Independent HR Consultants Can Support Them

While the Bill is framed around worker protections, its real impact is organisational. For many businesses, particularly SMEs, it changes the risk profile of employment decisions and increases the importance of getting fundamentals right.

Independent HR consultants are well placed to support businesses through this transition.

 

Employment Risk Moves Earlier – and Becomes More Costly

With unfair dismissal rights applying after six months and compensation caps removed, businesses face earlier and potentially higher financial exposure.

This means:

• Probation periods must be meaningful, not procedural
• Performance issues must be addressed early and documented properly
• Managers need confidence to act lawfully in the early months of employment

 

How independent HR consultants support businesses:

Independent HR consultants can design robust probation frameworks, review dismissal and capability processes, and coach managers to make defensible decisions. This reduces tribunal risk while preserving commercial agility.

 

Workforce Models Need Re-thinking

Businesses relying on zero-hours, agency or flexible staffing will need to assess whether current practices remain compliant and cost-effective.

How HR Consultants supports businesses:
Independent HR consultants audit contracts and working patterns, advise on compliant alternatives, and support consultation and communication with workers – helping businesses retain flexibility without drifting into risk.

 

Absence and Pay Costs Require Forward Planning

SSP reform will increase costs and may affect absence patterns, particularly in operational or people-intensive sectors.

How HR Consultants supports businesses:
Independent HR consultants can review sick pay policies, align contractual and statutory arrangements, and support managers with consistent, lawful absence management – helping businesses control cost without undermining fairness.

 

Compliance Will Be Actively Enforced

The Fair Work Agency introduces a new enforcement environment where businesses must be able to demonstrate compliance, not just claim it.

How HR consultants supports businesses:
Independent HR consultants conduct compliance audits, update policies and contracts, and help businesses prepare for inspection or enforcement activity – providing reassurance without the overhead of permanent in-house HR.

 

Employee Relations and Reputation Matter More Than Ever

Beyond legal compliance, the Bill reflects rising expectations of fairness, transparency and security at work. How businesses respond will affect engagement, retention and employer reputation.

 

How independent HR consultants support businesses:
Independent consultants provide objective, practical support during periods of change, helping businesses communicate clearly, manage employee relations constructively, and protect their employer brand.

 

Final Thoughts – and a Call to Action

The Employment Rights Bill represents a permanent shift in the UK employment landscape. While implementation is phased, the direction is clear: businesses that plan early will reduce risk, avoid rushed decisions, and control cost far more effectively than those that wait.

HR Independent Consultants helps businesses translate complex legislation into practical, commercial solutions. If you want to get ahead of these changes, we can support with:

• A rapid “readiness review” of contracts, policies and practices
• Manager training focused on probation, performance and documentation
• Workforce model and cost-impact assessment (including SSP and flexible staffing)
• Ongoing retained HR support without the cost of an in-house team

If you would like to discuss how the Employment Rights Bill affects your business and how HRi members can support you, now is the time to start that conversation.

Author:  Mary Asante | HRi