The Employment Rights Bill (ERB) is one of the most significant reforms to UK employment law in decades. With phased implementation starting in April 2026, the clock is ticking for employers of all sizes. Time is short – start planning now to avoid last minute pressure.
The Bill had faced delays due to disagreement between the House of Commons and the House of Lords over whether unfair dismissal rights should apply from day one or after a qualifying period. Following constructive discussions between trade unions and business representatives, on 27 November 2025 the Government announced a compromise: unfair dismissal rights will apply after six months of employment, not day one. This decision is to ensure the Bill can progress to Royal Assent and keep to its delivery timetable as set out in the Government’s Roadmap on the ERB despite ongoing Parliamentary debate.
This legislation will reshape workplace rights, from the new qualifying period for unfair dismissal and increased family leave rights, to restrictions on zero-hours contracts and new duties to prevent sexual harassment. Many of the changes will take effect in April and October 2026, with further reforms scheduled for 2027.
Why early action matters: Waiting until the last minute risks tribunal claims, reputational damage, and operational disruption. Acting now positions your organisation as proactive and fair – qualities that attract and retain talent in a competitive market. Early engagement also gives you time to consult, test systems, and embed cultural changes before deadlines hit.
Here are 10 practical steps to help employers start planning and prepare for these changes.
1.Understand the Roadmap
The Government’s official Roadmap sets out phased implementation dates.
Key milestones include:
- April 2026: New day-one rights for both paid paternity leave and unpaid parental leave, statutory sick pay will apply from first day of absence and all employees will qualify regardless of earnings, along with an increase to collective redundancy awards.
- October 2026: Fire-and-rehire restrictions, sexual harassment prevention duties increased, union access rights and an obligation on employers to let employees know they can join a union, plus extended tribunal claim time limits (six months).
- 2027: 6-month qualifying period for unfair dismissal (revised from day-one), zero-hours contract restrictions, mandatory gender pay gap reporting and menopause action plans, along with enhanced flexible working rights.
Use these timelines to prioritise compliance, allocate resources, and schedule updates well ahead of deadlines. Tailor your planning to your sector, for example, hospitality and retail may need a focus on zero-hours contract changes.
2. Prioritise High-Impact Changes
Not all ERB reforms will affect your organisation equally. Start by identifying the changes with the greatest operational impact – such as zero-hours contract restrictions, wider statutory sick pay rights or strengthened flexible working rights. Focus your time and resources on these areas first to reduce risk and build confidence. Tackling high-impact reforms early creates momentum and gives you breathing space before addressing longer-term changes.
Key actions:
- Identify Priority Areas: Review the ERB reforms and highlight those with the biggest impact on your operations.
- Allocate Resources: Direct time, budget, and effort to these priority areas before moving to lower-impact changes.
- Act Early: Implement high-impact changes first to minimise risk and avoid last-minute pressure.
By focusing on the most significant changes first, you’ll reduce compliance risk and create a strong foundation for implementing the remaining ERB reforms.
3. Audit Contracts and Policies
Review contracts, handbooks, and policies now to align with ERB changes.
Focus on what matters most:
- Update employment contracts and probation policies: to reflect the new six-month qualifying period for unfair dismissal. This means decisions about retaining employees must be made earlier, and documentation needs to be thorough. Also, ensure processes account for extended tribunal time limits, so records are kept longer to defend potential claims.
- Family Leave: Incorporate day-one rights for paid paternity and unpaid parental leave from April 2026. Ensure systems can track and approve requests.
- Flexible Working: Check policies meet new statutory standards. Document refusal reasons clearly to reduce dispute risk.
- Union Rights: Prepare for duties to inform staff of their right to join a union. Update onboarding and internal communications.
- Equality and Inclusion: Plan for gender pay gap reporting and menopause action plans, which are voluntary for employers with 250 plus employees from April 2026 and mandatory from 2027. Embed new obligations to take all reasonable steps to prevent sexual harassment through training and clear reporting channels.
Make this a recurring review, not a one-off. Policies will need updates as further ERB provisions are consulted and implemented. Seek legal advice where needed to minimise risk.
4. Upgrade Systems and Processes
Policies alone won’t deliver compliance—your systems and workflows must support the changes.
Focus on:
- HR and Payroll: Check platforms can handle new entitlements like statutory sick pay changes – it will apply from day one of absence and all employees will qualify regardless of lower earnings from April 2026. Plan upgrades or integrations to avoid manual errors.
- Family Leave Management: Ensure processes for recording and approving family leave are clear and efficient. Automation reduces admin and improves transparency.
- Compliance Tracking: Use tools that flag deadlines, track updates, and generate reports, which would be especially useful for multi-site or complex operations.
- Data Security: Confirm new systems meet data protection standards when handling sensitive information such as health data for menopause plans or flexible working requests.
- Communication Channels: Refresh intranet content, FAQs, and digital noticeboards so employees receive timely, clear updates.
Start with high-impact changes and phase in updates to minimise disruption.
5. Update Recruitment and Retention Strategies
The ERB will significantly influence how organisations attract and retain talent. Employers must review their recruitment and retention strategies to ensure they align with the new legal framework and reflect a commitment to fairness and compliance.
Key actions include:
- Tighten Recruitment and Pre-Employment Processes: With the qualification period for unfair dismissal now set at six months, employers regain some flexibility compared to day-one rights. However, early terminations still carry risk, especially around discrimination or whistleblowing claims. Robust recruitment processes and careful candidate selection remain critical. Consider introducing structured assessments and competency-based interviews to reduce hiring risks and ensure cultural fit before making offers.
- Adapt Onboarding Processes: Incorporate updated policies into induction materials, including a new legal requirement for information on the right to join a union, along with information on sexual harassment prevention. This is necessary for legal compliance and helps new hires feel informed and supported.
- Retention Through Flexibility: Review retention strategies to accommodate evolving employee expectations. Enhanced family leave, flexible working arrangements, and inclusive policies on menopause and gender equality will become key differentiators in a competitive market.
By embedding these changes into recruitment and retention strategies, organisations can not only meet legal requirements but also create a workplace culture that attracts and retains top talent.
6. Review Dismissal and Probation Processes
The Employment Rights Bill (ERB) introduces a 6-month qualifying period for unfair dismissal (previously day-one), significantly increasing legal risk for early-stage terminations. Employers should act now to ensure processes are fair, consistent, and compliant.
Key actions:
- Probation periods: Maintain probationary periods, but review progress early and make retention decisions in good time before the six-month mark to allow time for required steps if issues arise.
- Termination procedures: Embed objective criteria, transparent decision-making, and thorough documentation to reduce tribunal risk under expanded protections.
- Manager training: Equip managers with practical guidance on handling performance issues, documentation standards, and considering alternatives such as redeployment or support before termination.
- Consistency: Apply recruitment, probation, and dismissal policies uniformly to avoid discrimination claims and maintain trust.
Strong processes and early intervention will help minimise risk and protect your organisation under the new framework.
7. Prepare Workforce Communications
Clear, consistent communication is essential to help employees understand ERB changes and what they mean for them. A strong strategy builds trust, reduces uncertainty, and supports compliance.
Key actions:
- Create Accessible Resources: Use simple guides or FAQs to explain changes in plain language. Make them easy to find and understand.
- Enable Feedback: Provide channels for questions and concerns. Two-way communication closes gaps and shows commitment to fairness.
- Use Different Methods: Share updates in ways that suit your workforce—whether that’s team meetings, email updates, noticeboards, or digital platforms. The goal is to reach everyone effectively.
Early, transparent communication will manage expectations, minimise confusion, and reinforce a culture of compliance and respect.
8. Stay Informed and Adapt Quickly
ERB details are still evolving, and official guidance will shape how obligations are applied. Staying informed and ready to adapt ensures compliance and avoids costly missteps.
Key actions:
- Stay Flexible: Avoid locking in decisions until final guidance is confirmed.
- Monitor Updates: Regularly check trusted sources like GOV.UK, ACAS, and the Department for Business and Trade for authoritative advice.
- Seek Expert Support: Use HR or legal specialists to interpret guidance and advise on practical implementation.
- Share Internally: Keep decision-makers and anyone responsible for HR informed so compliance plans can adjust quickly.
Being proactive and informed reduces uncertainty and will help your organisation respond confidently to change.
9. Train Managers and HR Teams
Managers and HR teams are on the front line of ERB compliance. Their ability to apply the new rules confidently will reduce risk and protect your organisation.
Key training priorities:
- Unfair Dismissal and Extended Tribunal Time Limits: With a six-month qualifying period, termination decisions need robust justification and thorough documentation from day one.
- Sexual Harassment Prevention Duties: From October 2026, employers must take all reasonable steps to prevent harassment. This includes equipping managers and HR teams with in-depth training to recognise inappropriate behaviour, respond effectively to complaints, and foster a zero-tolerance culture -supported by clear policies and confidential reporting channels.
- Flexible Working Requests: Ensure managers understand stronger employee rights, legal grounds for refusal, and the importance of documenting decisions to avoid disputes.
Training doesn’t need to be costly or complex. Simple, practical approaches work well, such as sharing concise guidance notes, using checklists for key processes, and incorporating short discussions into regular team meetings. Providing access to well-drafted policies and reliable resources for quick reference can also help build confidence and clarity so managers apply the rules consistently.
10. Plan Your ERB Timeline
The ERB introduces a phased implementation schedule spanning several years, making a clear compliance timeline essential for effective planning. A well-structured timeline helps prioritise tasks, allocate resources, and avoid last-minute pressure.
Key steps for building your timeline:
- Map Legislative Milestones: Plot key official implementation dates – April 2026, October 2026, and 2027—alongside the reforms that apply at each stage.
- Break Down Actions and Assign Responsibilities: Identify operational changes for each phase, allocate tasks, and set realistic deadlines well ahead of statutory dates for when the changes take effect.
- Integrate Training and Communication: Ensure training and system updates run in parallel with policy changes to maintain compliance and workforce confidence.
By creating a detailed compliance timeline now, organisations demonstrate a proactive commitment to good governance, positioning themselves as fair and responsible employers while strengthening both compliance and reputation.
Ready to Help You Navigate the Changes
At Stephens Scown LLP, we will be launching a new ERB Audit in early 2026 to help employers assess their readiness, identify legal and operational gaps, and prioritise reforms. This will be supported by a series of training events designed to equip HR teams, senior leaders, and operational managers with the tools and confidence to implement change effectively.
We encourage employers to engage with us early so we can support you in building a legally compliant, inclusive, and resilient workforce—ready for the future of employment law. This article reflects the current proposals and commentary surrounding the Employment Rights Bill as of 28 November 2025. Some provisions remain subject to consultation and final legislative approval. Employers should seek legal advice before making significant changes to policy or practice.
If this might affect you then please reach out to our Employment Team.