The Employment Rights Bill introduces sweeping reforms set to come into force by way of scheduled waves of changes between 2025 and 2027. It is likely that the first provisions will become UK law by the end of this year. These changes will reshape employment standards across the UK with particular impact on adult social care.
Given the impact on the social care sector, there are key reforms of which you should be aware that will help keep you compliant. Now is the time to start putting steps in place that will put you ahead of the curve before employment law changes significantly. Making changes now gives you the opportunity to turn new legal obligations into strategic advantages, including for retention and engagement.
Unfair Dismissal Protection
The Bill will remove the current two-year qualifying period for unfair dismissal, and its highly likely employees will gain day-one unfair dismissal rights. To balance this the Bill proposes a lighter-touch dismissal process during a new statutory ‘initial period’ (essentially a probationary period), which is likely to be for nine months. This lighter process may involve a meeting with the employee (with the right to be accompanied) and applies only to dismissals for conduct, capability, illegality, or some other substantial reason. The less onerous process does not apply to redundancy.
The changes are expected to take effect in 2027 following an earlier consultation period. In the meantime, employers should be taking steps ahead of the changes to:
- Exercise greater caution in recruitment decisions ensuring thorough vetting and clear role expectations from the outset.
- Monitor staff performance closely during probationary periods, with structured reviews and documented feedback to support future decisions.
- Address any concerns quickly, rather than deferring actions to ensure they are managed, thus reducing legal risk.
Zero Hours Reform
While not banning zero-hour contracts, the Bill will introduce significant restrictions, aimed at curbing what the Labour Government has described as “exploitative” use. Employers will need to review zero and low-hour contracts, offer guaranteed hours where patterns require it under the new rules (likely to be after a repeated reference period of 12 weeks), and compensate staff for late shift changes and cancellations.
This will also apply to agency workers with the employer generally responsible for making the offer of guaranteed hours. Again, the changes are expected to take effect in 2027, and in preparation, employers should:
- Audit and review zero and low hour contracts, including for agency staff, to identify roles likely to trigger the guaranteed hours requirement.
- Aim to reduce reliance on zero-hours arrangements and prepare for predictable working pattern offer requirements.
- Consider negotiating updated collective agreements with recognised trade unions as this can allow more flexibility in the use of zero-hour contracts.
Sexual Harassment Duty
The Bill raises existing standards to ensure employers take more proactive steps to prevent sexual harassment, i.e. “all reasonable steps”. This legal duty will be extended to employers taking action to protect staff against third parties. For those in the social care sector, this will include preventing harassment from contractors, visitors and service users,
To prepare for the new standards, providers should update anti-harassment policies and provide training to cover third-party harassment, with clear guidance for staff interactions with each other and third parties.
Flexible Working
The right to request flexible working from day one will be strengthened, with proposals to make flexible working the default, unless the employer can show that it is unreasonable. Employers may still refuse requests based on one of the existing statutory grounds but must explain why they consider the refusal reasonable.
While roles within care homes may limit flexibility in working arrangements, the expectation to by staff for an employer to accommodate a flexible working request is increasing, especially in the context of recruitment and retention pressures. To balance operational needs with employee expectations employers should:
- Review flexible working policies to prepare for the shift to flexible working as the default.
- Identify those roles where flexible working may be operationally challenging and be prepared to document the reasons why.
- Train managers to assess requests, fairly and consistently, and to explain refusals clearly with reference to statutory grounds.
Sick Pay Reform
Statutory sick pay will be another immediate right for employees, rather than having to wait to qualify on the fourth day of sickness absence. The lower earnings limit will be removed, so sick pay will be paid to all eligible staff whatever their earnings, Those with wages below the lower earnings limit (currently £123 a week) do not currently qualify. Employers should be prepared to update both payroll systems and their absence policies.
Contracts and Employee Voice
The Bill introduces measures to enhance trade union access and strengthen employee voice. A new duty on employers to inform employees of their right to join a trade union will be in force, along with enhanced rights of unions to access workplaces.
Given these changes, advisable action points for employers are to:
- Prepare for employment contracts and onboarding materials to include clear information about trade union membership rights.
- Engage with unions where relevant and prepare for increased expectations around access and consultation.
- Engage staff without formal union recognition to strengthen employee voice mechanisms. This could include staff forums or representative bodies.
Equality and Menopause Action Plans
From April 2026, large employers (250+ staff) will be encouraged on a voluntary basis to publish details on enhanced pay transparency and menopause-related workplace support as part of an equality action plan. During 2027 this becomes mandatory.
For smaller care providers, they should prepare for a trickle-down effect in staff expectations and what will be considered good practice for employers.
Proactive steps employers can take in anticipation of new legal requirements include:
- Audit current pay data and consider if action should be taken to address a gender pay gap.
- Develop or review menopause support policies, provide guidance for managers, and access to occupational health.
- Prepare for the publication of workforce data and consider voluntary reporting even if below the threshold, especially where values or sector expectations align.
Fair Work Agency and Adult Social Care Negotiating Body
The Bill will create a Fair Work Agency designed to oversee compliance and enforcement standards including on minimum wage, holiday pay and statutory sick pay. Employers can expect to face increased scrutiny and reporting.
The Bill also provides for the establishment of sectoral collective bargaining bodies. The Adult Social Care Fair Pay Body is identified as the first to be established, with implementation expected during 2026. It will be an industry-wide body set to represent employers and trade unions to introduce legally binding, sector-wide minimum standards for pay and conditions in adult social care, affecting employer budgets, contracts, and workforce planning. Care home businesses should monitor developments including government guidance and implementation timelines.
This article reflects the current proposals and commentary surrounding the Employment Rights Bill as of October 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 you wish to discuss this further please get in contact with Laura McFadyen in our Employment team or call us on 0345 540 5558.