Employment Rights Bill

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, so start planning before the deadlines hit.

The Employment Rights Bill is still being debated in Parliament, but once enacted, the implementation timetable will begin without delay.

This legislation will reshape workplace rights, from likely day-one protections on unfair dismissal and increased family leave rights, to restrictions on zero-hours contracts and new duties to prevent sexual harassment. Many changes will take effect in April and October 2026, with further reforms scheduled for 2027.

Now is the time to move from awareness to action. Whether you employ five people or five hundred, early planning will help you stay compliant, protect your organisation, and build a fairer, more resilient workforce. These 10 practical steps will help you prepare for the New Year in 2026 and beyond.

Why early action matters: Last-minute action risks claims and reputational damage. Early preparation allows time to budget for changes such as increased statutory sick pay and paid family leave entitlements, update internal systems, train managers, and communicate clearly with staff. It also positions your organisation as proactive and fair, which are key factors for attracting and retaining talent in a competitive market.

1. Understand the Roadmap

The Government’s official Roadmap sets out phased implementation dates, see here.

The significant changes include:

  • April 2026: Statutory sick pay rights increased, day-one paid family leave rights, increase to collective redundancy awards.
  • October 2026: Fire-and-rehire restrictions, sexual harassment prevention duties increased, employers required to inform staff of their right to join a union and union rights of access to workplaces, employment tribunal claim time limits extended to six months.
  • 2027: Likely day-one unfair dismissal rights, zero-hours contract restrictions, gender pay gap and menopause action plans mandatory after voluntary in April 2026, flexible working rights increased.

Employers should use the timelines set out in the Government Roadmap to prioritise compliance activities, allocate resources, and schedule updates well ahead of deadlines. Plan early to avoid compliance risks and reputational harm.

Sector-specific considerations are also critical: for example, hospitality and retail businesses may need to focus on zero-hours contract changes.

2. Form an ERB Compliance Plan

Build a clear compliance plan to navigate ERB reforms. While this may feel daunting (particularly for smaller businesses), taking small steps and planning now will make compliance easier going forward. What matters most is clarity, accountability, and a phased approach.

For small organisations, a single HR lead could set priorities and create a simple plan. For larger organisations, consider forming a cross-functional working group that includes an HR team, payroll, legal and IT representatives to ensure all operational areas are covered.

Key steps for building a robust ERB Compliance Plan include:

  • Map the Reforms by Date and Impact: Identify which changes take effect first and assess their relevance to your business. This prioritisation helps allocate resources efficiently.
  • Assign Clear Responsibilities: Distribute tasks across your team to avoid bottlenecks and ensure accountability.
  • Schedule Regular Progress Reviews: Monitor implementation milestones and adjust plans as needed.

Financial planning is equally critical. Anticipate costs for statutory sick pay adjustments and paid family leave increases, manager training and system upgrades such as HR platforms or compliance tracking tools. Even small businesses may find it helpful to model potential cost increases to avoid unexpected financial strain and compliance risks.

3. Audit Contracts and Policies

A thorough review of employment contracts, handbooks, and HR policies is essential to ensure compliance with the ERB. This process should be systematic and forward-looking, addressing both immediate changes and those scheduled for later phases of implementation.

Key areas to prioritise include:

  • Dismissal and Probation Processes: Ensure that probation and termination clauses, policies and processes are legally robust and clearly communicated to employees.
  • Family Leave Entitlements: Amend policies to incorporate new family leave entitlements, including paid paternity and unpaid parental leave from Day 1, which will apply from April 2026. Confirm that systems for tracking and approving leave requests are aligned with these changes
  • Flexible Working: Review your flexible working policy to ensure compliance with updated statutory requirements. Document refusal reasons thoroughly and confirm they are legally defensible to mitigate the risk of disputes.
  • Unions – Requirement to let employees know of their joining rights: Prepare for new duties requiring employers to inform staff of their right to join a trade union. Update onboarding materials and internal communications to reflect these obligations.
  • Equality and Inclusion Measures: Work on gender pay gap reporting and menopause action plans well ahead of deadlines – required for employers with 250 plus employees, but smaller employers may also choose to do so. Embed sexual harassment prevention strategies into organisational culture through training, clear reporting channels, and proactive communication.
  • Unfair Dismissal and Tribunal Deadlines Extended: Update procedures to reflect forthcoming day-one unfair dismissal rights and extended tribunal time limits. 

This audit should not be treated as a one-off exercise. Establish a review cycle to ensure policies remain current as further ERB provisions go through consultations and come into force. Where necessary, seek legal advice to confirm that contractual language and policy frameworks meet statutory requirements and minimise liability risk.

4. Plan Systems or Process Updates

Updating internal systems and processes is a critical step in preparing for the ERB. Compliance will not only depend on policy changes but also on the operational infrastructure that supports them. Ensure your technology, workflows and reporting mechanisms are aligned with the new legal requirements.

Key considerations include:

  • HR and Payroll Systems: Review existing platforms to confirm they can accommodate changes such as revised statutory sick pay entitlement (removal of lower earnings limit and waiting period). Where necessary, plan for upgrades or integrations to avoid manual errors and ensure accurate compliance tracking.
  • Family Leave Management Processes: Implement or enhance systems for recording and approving leave, incorporating the new regulations introduced by the ERB. Automated systems can help reduce administrative burden and improve transparency for employees.
  • Consider Monitoring Tools: Consider adopting tools that provide alerts for upcoming deadlines, track policy updates, and generate compliance reports. This is particularly important for larger organisations managing multiple sites or diverse workforce arrangements.
  • Data Security and Confidentiality: Ensure that any new systems comply with data protection regulations when handling sensitive employee information, such as health-related data for menopause action plans or flexible working requests.
  • Communication Channels: Update internal communication processes to ensure employees are informed about changes promptly and clearly. This may include revising intranet content, creating FAQs and implementing digital noticeboards for policy updates.

By addressing these issues early, organisations can minimise disruption, reduce compliance risks, and create a smoother transition to the new regulatory framework. A phased implementation plan, starting with high-impact changes will help maintain business continuity while meeting statutory obligations.

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 considerations include:

  • Tighten Recruitment and Pre-Employment Processes: Due to day-one unfair dismissal rights, it will be harder to terminate new hires quickly. This makes robust recruitment processes and careful candidate selection more critical. Consider introducing more structured assessments and competency-based interviews to reduce hiring risks.
  • Adapt Onboarding Processes: Incorporate updated policies into induction materials, including a new legal requirement for information on union rights, along with information on sexual harassment prevention. Early clarity helps new hires feel informed and supported and ensures compliance.
  • 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 ERB is due to introduce day-one unfair dismissal rights, which will significantly increase legal risk for early-stage terminations. It’s essential for employers review and update these processes well in advance of implementation. The change will mean that from 2027, dismissal decisions will require stronger justification and clearer documentation from the outset of employment.

Employers must therefore take the following steps:

  • Probationary Periods: Under the ERB, the Initial Period of Employment (IPE) is planned to extend to nine months. This is the window during which certain procedural steps apply before dismissal. Even with a nine-month IPE, probation periods typically remain three to six months, so employers should review progress early and decide by six months to allow time for required steps if issues arise.
  • Revise Termination Procedures: Align dismissal processes with the new legal standards by incorporating objective criteria, transparent decision-making, and thorough record-keeping. This will help mitigate the risk of tribunal claims, including under the expanded unfair dismissal protections.
  • Train Managers: Equip line managers and HR teams with practical guidance on handling performance issues during probation and beyond. Training should cover legal obligations, documentation standards, and alternative measures such as redeployment or additional support before termination.
  • Embed Consistency: Apply recruitment, probation and dismissal policies uniformly across the organisation to avoid claims of discrimination or unfair treatment. Consistency is critical for compliance and for maintaining trust within the workforce.

By addressing these areas early, employers can reduce legal risk, protect reputation, and ensure fair treatment of employees under the new legal framework.

7. Prepare Workforce Communications

Communicate clearly and consistently to ensure employees understand the changes introduced by the ERB and how these forms will affect them. A well-structured communication strategy will help build trust, reduce uncertainty and support compliance.

Key actions to consider:

  • Create Accessible Resources: Create simple, clear resources—like short guides or FAQs—to explain the changes. Make sure they’re easy for everyone to access and understand.
  • Establish Feedback: Encourage employees to ask questions and share concerns. Two-way communication helps identify gaps in understanding and demonstrates a commitment to fairness and inclusion.
  • Use Multiple Channels: Combine digital and face-to-face methods to reach all employees effectively. This may include intranet updates. Email bulletins, FAQs, and team briefings.

By preparing internal communications early, organisations can manage expectations, minimise confusion, and reinforce a culture of compliance and respect.

8. Engage with Consultations and Guidance

Engage early in consultations to stay ahead for organisations preparing for the ERB. These consultations often shape the final details of legislation and provide valuable insight into how new obligations will be interpreted and enforced. Employers who engage early can influence outcomes, anticipate changes, and adapt policies before they become mandatory.

Key actions to strengthen engagement:

  • Avoid Premature Assumptions: Many details of the ERB regulations are still subject to consultations. Employers must therefore remain flexible and avoid making definitive decisions until final guidance is published.
  • Monitor Official Updates: Regularly review guidance from the Department for Business and Trade, ACAS, GOV.UK, and other regulatory bodies. These sources provide authoritative interpretations and practical advice on compliance.
  • External Expertise: Engage employment law specialists to interpret draft guidance and advise on practical implementation. This ensures your organisation remains aligned with evolving requirements and avoids costly missteps.
  • Communicate Internally: Share updates with senior leadership and HR teams promptly. Early awareness supports informed decision-making and timely adjustments to compliance plans.
  • Engage With Government Consultations: By actively engaging with consultations and guidance, organisations can stay ahead of regulatory developments, reduce uncertainty, and demonstrate a proactive commitment to compliance and good governance.

9. Train Managers and HR Teams

Train managers and HR teams to implement ERB changes. Managers and HR professionals are on the front line of compliance, and their ability to implement the regulations will significantly reduce organisational risk.

Key training points include:

  • Day-One Dismissal Rights and Extended Tribunal Time Limits: Provide clear guidance on the implications of day-one unfair dismissal protections. Managers must understand that termination decisions require robust justification and thorough documentation from the outset of employment.
  • Harassment Prevention Duties and Third-Party Risks: Train managers on their responsibilities to prevent workplace harassment. This should cover how to recognise inappropriate behaviour, responding promptly to complaints, and maintaining a safe working environment.
  • Flexible Working Requests: Ensure managers know how to assess flexible working applications fairly and consistently, particularly with new stronger rights for employees. Training should include legal criteria for refusal and the importance of documenting decisions to avoid disputes.

Training does not need to be expensive or complex. Organisations can use webinars or internal workshops to build confidence and competence. Supplement these sessions with practical resources such as checklists and FAQs to reinforce learning.

10. Create a Compliance Timeline

The ERB introduces a phased implementation schedule that spans multiple years, making a clear compliance timeline essential for effective planning. A clear timeline prioritises tasks, allocates resources, and avoids last-minute pressure.

Key steps for building your compliance timeline:

  • Map Legislative Milestones: Begin by plotting the official implementation dates (April 2026, October 2026, and 2027) alongside the specific reforms that apply at each stage. This provides a visual framework for planning and resource allocation.
  • Break Down Actions by Phase: For each milestone, identify the operational changes required.
  • Schedule Regular Checkpoints: To assess progress, address delays and adapt legislative updates or guidance issued following consultations.
  • Assign Responsibilities and Deadlines: Allocate responsibility for each task and set realistic deadlines well ahead of statutory dates. This ensures accountability.
  • Integrate Training and Communication: Include training sessions and system updates in the timeline. Such activities should run in parallel with policy changes to maintain compliance and workforce confidence.
  • Employer of Choice: By creating a detailed compliance timeline now, organisations demonstrate a proactive commitment to good governance. It positions you as a fair and responsible employer, 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 and practical workshops, designed to equip HR teams, senior leaders, and operational managers with the tools and confidence to implement change effectively.

We invite 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 27 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.