Is Your Business Ready for the Employment Rights Bill?

Peoplogy Ltd

HR Consultant

What is the Employment Rights Bill?

The Bill is one of the most significant overhauls of UK employment rights in years, covering things like sick pay, parental leave, trade unions, and protections from unfair dismissal.

Around 15 million workers (roughly half of the UK workforce) are expected to benefit from these changes. The new protections aim to boost living standards by giving more workers better sick pay, more reliable leave, and stronger job security.

Employers will also need to prepare: some rights come in quickly, others require longer lead-in time.

The newly established Fair Work Agency (FWA) will play a big role in enforcement, making sure that businesses follow the new rules, including the ability to initiate tribunal proceedings on behalf of employees.

Businesses engaging agency workers will bear clearer responsibilities for shift notifications, guaranteed hours and compensation for short-notice cancellations.

There are concerns from business groups: some say the Bill could impose high costs on employers.

Because the Bill is being phased in over several years, both workers and employers will need to keep up with multiple waves of change.

Current State of the Bill:

The Bill has returned to the House of Lords in a so-called “ping-pong” stage. This is where the Lords and Commons go back and forth over amendments.

On 17 November 2025, the Lords held votes on a number of key issues. After the Lords’ changes, the Bill will return to the Commons, which must agree (or not) to the Lords’ version.

Key Changes Coming & When

Based on the Government’s roadmap, here’s what to expect and when:

Short-term (December 2025 or early 2026)

The Strikes (Minimum Service Levels) Act 2023 will largely be repealed.
Most of the Trade Union Act 2016 will also be undone.
Workers will get stronger protection from being dismissed for taking lawful industrial action.

April 2026

Statutory Sick Pay (SSP): Becomes available from day one of illness; the lower earnings threshold and waiting period will be removed.
Parental leave: “Day-one” rights to paternity leave and unpaid parental leave will kick in.
A Fair Work Agency is expected to be established.
Collective redundancy protections will be strengthened (the “protective award” will double).
Whistleblower protections will be improved.

October 2026

“Fire and rehire” could become automatically unfair dismissal in many cases.
Employers will have a duty to take “all reasonable steps” to prevent sexual harassment.
Tipping rules will be reformed, forcing employers to consult staff on how service charges or tips are shared.
Employment tribunal time limits will be extended.
Trade union rights will be strengthened: better access, easier recognition, and more rep protections.

2027 (or later)

A day-one right to unfair dismissal is expected, though under a statutory probation model (meaning there may be a short probation period)
Flexible working: there’s likely to be a default right to request flexible hours.
Pregnancy, maternity, and bereavement rights will be enhanced.
Zero-hours contracts: stronger protections, including new rights for agency workers, and possibly a right to request guaranteed hours.
Employers may also need to publish gender pay gap and menopause action plans.

If you would like to discuss preparing your organisation for the impending reforms, contact Peoplogy Ltd. for a free, no-commitment conversation.

Employee Relations
Compliance
employment advice
employer duties
Employment & HR

Peoplogy Ltd

HR Consultant

I’m George Mucsy, the founder of Peoplogy Ltd., a HR consultancy helping startups and small businesses build the people foundations they need to grow with confidence. Leveraging my 15 years HR…