The Employment Rights Bill is a major piece of legislation designed to strengthen workplace protections. It covers a wide range of issues, including dismissal rights, zero-hour contracts, family leave, and trade union reforms. It was anticipated to receive Royal Assent this Autumn but is currently going through what is becoming an increasingly lengthy period of Parliamentary ping pong.
One of the key points of contention between the Commons and the Lords is the introduction of a day one right to bring an unfair dismissal claim. The Lords is currently pushing for a six month qualification period so it remains to be seen how this will be resolved.
The government published an implementation roadmap for the Bill in July. This sets out a timetable for the various measures contained in the Bill, though this may be subject to change. We don't have room to deal with all of these in this article, but here are the main things for employers to be aware of.
April 2026
Changes to the collective redundancy protective award
Currently, if a failure to collectively consult claim is successful, the employer may have to pay the employee a protective award, and this can be up to 90 days' full pay for each affected employee.
The cap on protective awards in collective redundancy situations will increase from 90 days to 180 days.
Introduction of "day 1" right to paternity leave and unpaid parental leave
Paternity leave is currently only available for those employed for 26 weeks or more by the 14th week before the expected week of childbirth, while parental leave is only available to employees with one year's continuous employment. Both will become day one rights.
Removal of Lower Earnings Limit and waiting period for Statutory Sick Pay
Statutory sick pay will be available from the first day of absence and the lower earnings limit will be removed. Lower earners will be entitled to 80% of normal weekly earnings or SSP, whichever is lower.
Right for trade unions to access the workplace
A listed trade union will be able to request access to the workplace to meet, represent, recruit or organise workers and to facilitate collective bargaining, but not to organise industrial action. If an employer refuses the union will be able to challenge this at the Central Arbitration Committee (CAC).
October 2026
Fire and rehire provisions will be introduced
The practice of fire and rehire is going to be restricted. A dismissal will be unfair if the reason (or principal reason) was that the employer sought, and the employee refused, a variation to their contract of employment. It will also be unfair if the employer replaces the employee with another person who carried out substantially the same duties, but who is willing to accept the varied terms.
The Bill will allow an employer to fire and rehire in limited circumstances such as the need to reduce or mitigate "financial difficulties".
Mandatory requirement on employers to take "all reasonable steps" to prevent sexual harassment of their employees
Employers are currently under a duty to take reasonable steps to prevent sexual harassment of their staff in the course of their employment. Under the Bill, the government will strengthen the legal duty for employers to take "all" reasonable steps to stop sexual harassment before it starts. The Bill will also introduce liability on employers for the acts of third parties.
Employment tribunal time limits will be extended from three to six months
2027
"Day 1" right to protection from unfair dismissal
The current two year qualifying period will be swept away and the right not to be unfairly dismissed will be in place from day one of employment.
The Bill allows employers to operate probationary periods during which employees can be dismissed more easily for performance after following a lighter-touch process. The government has committed to consulting on the length of the statutory probation period.
"Day 1" right to flexible working
Flexible working will be the "default" from day one for all workers, but only where "practicable". The Bill also makes it clear that the refusal must also be reasonable. The government has committed to developing the detail of this new right in consultation.
Mandatory publication of gender pay and menopause action plans
Under the Bill employers with 250 or more employees will have to develop, publish and implement action plans to close their gender pay gaps. Employers will also have to show how they are supporting employees going through the menopause.
New rights for pregnant workers
Under the Bill it will be unlawful for an employer to dismiss an employee who is pregnant, on maternity leave or who is returning from maternity leave for six months after their return to work, except in specific circumstances. The details of the new rights are currently the subject of consultation.
Statutory right to bereavement leave
The detail of the new statutory right to leave for bereavement including pregnancy loss is currently being consulted on.
New collective consultation thresholds
Collective consultation will be required if there are 20 or more redundancies at one establishment (as is currently the case) but also where a threshold number of redundancies are proposed at more than one establishment (the new threshold). The details of the new threshold will be set out in further regulations.
Zero hours
The Bill provides that workers on zero hours contracts and workers with a "low" number of guaranteed hours, who regularly work more than these hours, will have the ability to move to guaranteed hours contracts which reflect the hours they regularly work over a fixed reference period.
Employers will be required to give employees reasonable notice of shifts which are required or requested to be worked and will also be required to provide reasonable notice of any changed or cancelled shift.
The details of these new rights will be the subject of consultation.
