Preparing for the Employment Rights Bill: Key Considerations for Employers

The Employment Rights Bill (ERB) is one of the most significant overhauls of UK employment law in decades. With major changes due to start from April 2026, through to 2027, organisations should start preparing now for new compliance demands, stronger employee protections, and the associated operational and cost impacts.

Time line of the prospective changes

April 2026

Increase in collective redundancy protective awards

Currently, If an employer fails to carry out proper collective consultation before redundancies, a tribunal can award a protective award of up to 90 days’ full pay per affected employee. From April 2026, The maximum protective award will double from 90 days to 180 days’ pay per employee, significantly increasing potential financial liability for employers who fail to consult properly.

“Day-one” entitlement to paternity leave and unpaid parental leave

Parental leave is currently only available to employees with one year of continuous employment. Paternity leave is limited to employees with at least 26 weeks’ service by the 14th week before the expected birth. From April 2026 both parental and paternity leave become day-one rights, meaning all employees are eligible from their first day of employment, regardless of length of service.

Changes to Statutory Sick Pay (SSP)

Currently, employees must earn above a certain threshold to qualify for SSP. From April 2026, all employees, including low earners, will be eligible. At present, SSP starts on the fourth day of sickness. After the change, employees will be entitled to SSP from the first day of absence. Eligible employees will receive 80% of their normal weekly earnings or the SSP rate, whichever is lower.

Trade union access to the workplace

Trade unions already have some rights to represent workers, but getting access to workplaces is limited and often needs employer approval. Under the new rules, recognised unions can ask to enter workplaces to meet workers, recruit members, organise, and support collective bargaining (not industrial action). If an employer refuses, the union can appeal to the Central Arbitration Committee (CAC).

October 2026

Fire and rehire restrictions

New rules will significantly limit the use of “fire and rehire.” Employers cannot dismiss employees simply because they refuse to accept changes to their contract .Replacing an

employee with someone doing the same job on the new terms will also be considered unfair. Fire and rehire may still be used in exceptional situations, such as addressing serious financial difficulties, but these must be clearly justified.

Strengthened Duty to Prevent Sexual Harassment

Employers are required to take reasonable steps to prevent sexual harassment of employees in the workplace. However from April 2026 the legal duty is strengthened to require employers to take “all reasonable steps” to prevent harassment before it occurs. Employers will also be liable for harassment by third parties, such as customers, clients, or contractors.

Extension of Employment Tribunal Time Limits

Employment tribunal claims must be brought within three months of the event, the changes under the Employment rights Bill will be extended from three months to six months, giving employees more time to bring a claim.

2027

Day-One Protection from Unfair Dismissal

Employees generally gain the right to claim unfair dismissal after two years’ continuous service. In 2027, certain employees will gain protection from unfair dismissal from their first day of employment. This removes the minimum service requirement for specified types of dismissal protection (exact categories may depend on secondary legislation).

Flexible Working Rights

Right now, employees can request flexible working after 26 weeks of service. Employers can refuse requests for certain business reasons, but there is no statutory requirement to consider all requests proactively.

Changes under the Employment Rights Bill will allow for flexible working will become a day-one right, meaning all employees can request flexible arrangements from their first day of employment. Employers will have a duty to seriously consider all requests and provide clear reasons if they refuse.

Mandatory Publication of Gender Pay and Menopause Action Plans

Right now, large employers (250+ employees) must publish gender pay gap data annually. There is no mandatory requirement for menopause policies or action plans.

Under the proposed reform employers may be required to publish action plans addressing gender pay gaps and support for menopause in the workplace. These plans aim to improve transparency, equality, and employee wellbeing.

New rights for pregnant workers

Pregnant employees already have protections against unfair dismissal and certain workplace risks, and are entitled to maternity leave and pay. However, the Bill strengthens protections by introducing enhanced safeguards against dismissal during pregnancy. Employers may also have new obligations around risk assessments, workplace adjustments, and flexible working for pregnant employees. There will be stronger enforcement to ensure compliance with these protections in 2027.

Statutory right to bereavement leave

Currently, there is no universal statutory right to paid bereavement leave for most employees in the UK. Some limited rights exist for parents losing a child under 18 or stillbirth after 24 weeks. In 2027, employees will gain a statutory right to take bereavement leave following the death of a close family member. The length of leave, pay, and eligibility will be set out in law, giving employees clear entitlements.

New Collective Consultation Thresholds

Currently, employers must consult with employee representatives if 20 or more employees are at risk of redundancy at one establishment within 90 days. However, the Bill introduces new thresholds for triggering collective consultation, potentially lowering the number of redundancies that require consultation. This means more situations may legally require employers to engage with staff representatives or unions before making redundancies.

Regulation of Zero-Hours Contracts

At present, zero-hours contracts allow employers to offer work with no guaranteed hours, and employees have limited protections regarding notice and scheduling. The Bill introduces measures to end exploitative zero-hours practices, giving workers more predictability and rights. Employers may be required to provide advance notice of shifts, minimum guaranteed hours, or protections against unfair treatment for zero-hours employees.

The Employment Rights Bill will significantly increase employers responsibilities. Whilst many of these changes will not take effect until 2026 and 2027, employers should begin preparing now by reviewing their current policies and practices. HR policies, payroll, and absence management systems must be updated to reflect day-one leave rights, flexible working, Statutory Sick Pay, and protections against unfair dismissal.

Financial and legal risks will rise due to higher redundancy awards, extended tribunal time limits, and stronger harassment and pregnancy protections. Employers will also need to manage union access, workforce planning, and employee engagement more proactively, creating both challenges and opportunities for a fairer, more inclusive workplace.

If you have any questions or need help navigating the Employment Rights Bill. Our team can guide you through the changes and help you stay compliant. Give us a call on 01525372140 or email reception@austinandcarnley.co.uk and we will be pleased to help.