Employment law in the UK is on the brink of its biggest transformation in decades. The upcoming Employment Rights Bill outlines a phased roadmap for reform, widely referred to as the Employment Rights Bill roadmap, with changes rolling out from late 2025 through to 2027. For employers, this marks a pivotal opportunity to future-proof their policies, procedures, and workplace culture.

From day-one rights to enhanced protections for workers on zero-hours contracts, the reforms aim to create a fairer and more transparent employment landscape. For employers, the stakes are high. With many of the new rules backed by increased penalties and stricter enforcement, early preparation will be key. Here’s what you need to know about what’s coming, when it’s coming, and how you can get ahead with the Employment Rights Bill roadmap in mind.

 

Key Dates & Timeline Overview

The roadmap sets out three main implementation phases:

• Autumn 2025: Royal Assent expected
• April 2026: First wave of major changes begins
• October 2026: Second wave of reforms
• 2027: Final phase of implementation

Some changes will apply immediately following Royal Assent, but most reforms are staggered across the next two years to give employers time to prepare.

 

What’s Changing? Major Reforms for Employers to Watch

Here’s a breakdown of some of the most significant changes that will affect small and medium-sized businesses, grouped by when they come into force:

On Royal Assent (Autumn 2025)

Repeal of Previous Legislation
The Bill will immediately repeal the Strikes (Minimum Service Levels) Act 2023 and most provisions of the Trade Union Act 2016. This marks a significant shift in the UK’s approach to industrial action, restoring stronger protections for workers involved in lawful strikes.

Protection for Industrial Action
It will become automatically unfair to dismiss a worker for participating in lawful industrial action within the first 12 weeks. This change strengthens the rights of employees to take part in strike action without fear of dismissal.

 

From April 2026

Day-One Rights
Employees will gain day-one rights to:

• Statutory Sick Pay (SSP), with no lower earnings limit or waiting days
• Unpaid parental leave
• Protection from unfair dismissal for whistleblowing

For employers, this means adjusting onboarding processes, contract templates, and absence policies to reflect these rights from day one.

Statutory Sick Pay Reform
The removal of the lower earnings limit for SSP is a major shift. Currently, workers must earn at least £123/week to qualify. This change will extend eligibility to around 1.3 million workers across the UK, including many part-time and low-paid staff.

Fair Work Agency
A new Fair Work Agency will be established to enforce rights, investigate complaints, and support vulnerable workers. It will have the power to fine non-compliant employers and conduct random checks.

 

From October 2026

Fire-and-Rehire Ban
Employers will no longer be able to dismiss staff and re-engage them on worse terms without proving they took “all reasonable steps” to reach an agreement beforehand. For SMEs, this will require robust consultation processes and careful change management.

Protection from Sexual Harassment
Employers will have a proactive duty to prevent sexual harassment, including from third parties (e.g. customers, suppliers). Failure to do so could result in tribunal claims.

Tribunal Time Limits Extended
The time limit for bringing most employment tribunal claims will be extended from 3 to 6 months. This means longer windows for employees to raise disputes, which may impact risk management strategies.

Trade Union Changes
While less relevant for some SMEs, new rules will make it easier for workers to seek union recognition and take lawful industrial action. Employers with 50+ staff should take note.

 

Employment Rights Bill taking effect in 2027

Zero-Hours Contract Reform
Workers on zero-hours contracts will have the right to request a guaranteed-hours contract after 12 weeks. Employers relying on flexible staffing models should start planning for more predictable scheduling.

Day-One Right to Unfair Dismissal
All employees will gain the right to claim unfair dismissal from their first day, subject to a new statutory probationary period (likely up to 9 months). Employers should review how they manage performance and document decisions during probation.

Gender Pay Gap and Menopause Action Plans
New obligations will be introduced around gender pay gap transparency and menopause support, particularly for larger employers. These measures aim to improve workplace equality and retention.

 

Other Reforms on the Horizon

• Mandatory bereavement leave
• Stronger rules on tip distribution in hospitality
• Increased redundancy consultation requirements

 

What This Means for Employers and HR

These changes, as outlined in the Employment Rights Bill roadmap, represent a significant cultural and operational shift. For small employers without a dedicated HR team, it may feel daunting. But with early planning, the transition can be smooth.

Here’s how it will affect key areas:

Area	Impact	Suggested Action
Contracts & Handbooks	Templates will need updates for day-one rights, sick pay, dismissal, and flexible work.	Review and refresh templates before April 2026.
People Management	Managers will need training in new dismissal rules, harassment prevention, and probation practices.	Plan training sessions for Q1 2026.
Payroll & Benefits	New SSP rules may affect budgets and calculations.	Audit your payroll systems now.
Workplace Culture	Anti-harassment duties and zero-hours changes call for a fairer working environment.	Update policies and set clear expectations.
Risk & Compliance	More claims + more enforcement = higher legal risk.	Consider HR support or legal review.

 

What You Can Do Now

You don’t need to wait until the last minute to start getting ready. Here are five practical steps to begin with:

• Review employment contracts and handbooks – Build in flexibility for upcoming changes, especially for onboarding and probation.
• Update your absence and sick pay policies – Remove references to lower earnings limits or waiting days.
• Deliver manager training – Focus on handling probation, dismissals, and creating harassment-free workplaces.
• Start logging working patterns – Especially for zero-hours or casual staff, to prepare for guaranteed-hours requests.
• Keep an eye on consultations – The government will be running consultations on several reforms in 2025, including redundancy rules and umbrella companies.

 

Final Thoughts

This Bill isn’t just a legal overhaul — it’s a cultural one. For employers that get ahead now, there’s a real opportunity to build trust, improve employee experience, and stay on the right side of the law.
Change can be challenging, but with the right preparation, it can also be a catalyst for a stronger, fairer workplace.
If you’re looking for tailored support, guidance, or someone to walk you through the changes, you can find a trusted HR consultant through the HRi Directory.

 

Author: Mary Asante | HRi

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Sources:
UK Government. Employment Rights Bill Roadmap (2025)
UK Government. Press Release – Roadmap unveiled to boost rights for half of all UK workers and provide certainty to employers (2025)