Employment Rights Bill – only 1 in 4 know what’s coming

The government has announced a new roadmap for the Employment Rights Bill, revealing that changes could start to happen from this year up until 2027.

The Employment Rights Bill will apply to workers in England, Scotland, and Wales (but not Northern Ireland).

And with a recent survey of 45,000 voters revealing that only one in four have knowledge of the proposed reforms, here’s an overview of the changes small business owners need to be aware of.

Have you kept up to date with these major reforms? Keep reading to find out how the bill could affect your small business, as well as the key dates you need to know.

• Employment Rights Bill roadmap
• What is the Employment Rights Bill?
• How to prepare for the Employment Rights Bill

Employment Rights Bill roadmap announced

The Employment Rights Bill is being called the ‘biggest update to workers’ rights in a generation’. With such huge changes imminent, the government plans to roll out the changes in phases as part of the following roadmap.

Here are just some of the changes that could affect small business owners.

Reforms coming soon (upon reaching Royal Assent)

The Employment Rights Bill is currently passing through parliament. The final stage of any bill’s journey is to achieve Royal Assent – at which point it becomes law.

• more protection for striking workers by repealing the Strikes (Minimum Service Levels) Act 2023
• repealing the Trade Union Act 2016
• protections against dismissal for taking industrial action

April 2026

• establishing the Fair Work Agency to help protect workers’ rights
• removing the lower earnings limit and three-day waiting period before claiming Statutory Sick Pay
• access to unpaid paternal leave and paternity leave from day one in employment
• doubling the collective redundancy protective award – including making the compensation period twice as long
• further protection for whistleblowers
• simplifying the trade union recognition process
• introducing electronic and workplace balloting for union votes

October 2026

• the end of fire and rehire practices – where employers fire their employees and hire them back under worse conditions
• tightening of tipping laws 
• time limits on employment tribunals
• requiring employers to take “all reasonable steps” to prevent the sexual harassment of their employees

From 2027

• mandatory gender pay gap and menopause action plans (after being introduced on a voluntary basis in April 2026)
• more rights for pregnant workers – including protection from dismissal
• the right to bereavement leave when a close family member dies
• the end of exploitative zero hour contracts – including for agency workers
• more regulation of umbrella companies
• protection from unfair dismissal from the first day of employment

Read the full list of changes in the roadmap on the government website.

Zero hour contracts

As part of the new legislation, employers must offer workers employed on zero hour contracts a guaranteed-hours contract, which will be based on the hours they’ve worked during a 12-week period.

Zero hour workers will also be entitled to compensation if their shifts are cancelled or end early. You’ll also need to give them ‘reasonable notice’ ahead of any changes to their shifts.

However, employees have the choice to stay on a zero hour contract if they prefer.

Agency workers will be included in this new law – including eligibility for compensation if shifts are changed or cancelled.

These changes are expected to come into effect from 2027.

Unpaid parental and bereavement leave

From 2027, employees will be able to access unpaid parental and bereavement leave from their first day of employment. This currently only applies to staff who’ve been employed for more than a year.

Read our full guide to unpaid leave to learn more about how to approach parental and bereavement leave as an employer.

Unfair dismissal

Employees will now be able to claim unfair dismissal from their first day of employment in a business from 2027. Employees are currently only able to claim unfair dismissal after two years working at a company.

However, workers will now be subject to a longer probation period. During this period, employers are able to dismiss staff more easily while having more time to assess their suitability for a role. So far, the government has a preference for the probation period to last nine months.

Flexible working

From 2027, the bill is also set to bring changes to how businesses approach flexible working – which is to be seen as the default from day one. Employers will now have to say yes to flexible working requests, unless they can prove it’s “unreasonable”. Some reasons for denying a flexible working request include:

• additional costs to the business
• affecting the ability to meet customer demand
• inability to re-organise work among existing staff
• inability to recruit additional staff
• detrimental impact on quality

The right to request flexible working from the first day of employment was originally introduced in April 2024 as part of the previous government’s Flexible Working Bill but this new legislation goes further, by making flexible working the default.

Statutory Sick Pay

From April 2026, the government will remove the lower earnings limit and three-day waiting period before employees can claim Statutory Sick Pay.

Currently, employees need to be ill for more than three days in a row, as well as earn an average of £123 a week.

When this earnings limit is removed, those earning under £123 will be able to get SSP.

Workers will now be entitled to 80 per cent of their average weekly earnings or statutory sick pay (currently £116.75 a week) – whichever is the lowest.

Fire and rehire

Firing and rehiring refers to employees firing their employees and hiring them back under worse conditions – such as less pay, fewer hours contracted, or differing start and end times.

The Employment Rights Bill is set to ban these practices from October 2026. However, there are some exceptions (such as if a business is at risk of becoming insolvent).

Businesses caught firing and rehiring could be forced to pay compensation of 180 days of pay to the worker.

Protection for pregnant workers and new mothers

From 2027, there’ll be further protection in place to protect pregnant workers, as well as those returning from maternity leave. Further details of how this will work are yet to be announced, but protection from dismissal could be extended for up to six months after returning from maternity leave.

Fair Work Agency

From April 2026, a new Fair Work Agency will be established, combining different specialist enforcement bodies to help protect workers’ rights, as well as offering guidance to employers on all the above.

More guides for employers

• How to write a staff handbook: a guide for small businesses
• How to create an onboarding process for your business
• HR toolkit: what HR tools do growing businesses need?
• What does employers’ liability insurance cover?