Employment Rights Bill: What Employers Need to Know

The Employment Rights Bill marks one of the most significant overhauls of UK employment law in recent years. Designed to modernise workplace rights and improve conditions for millions of workers, the bill introduces reforms that will impact employers across all sectors.

This guide summarises the key changes, legal obligations, and practical implications, particularly for small and medium-sized enterprises (SMEs).

What is the Employment Rights Bill?

Introduced to Parliament in October 2024, the Employment Rights Bill consolidates several employment law proposals into a single framework. Its focus is on fairness, predictability, and supporting employees in balancing work and personal responsibilities.

The legislation has been developed with input from employers, trade unions, and HR professionals and is being introduced in stages, with formal consultations beginning in summer 2025. Key topics include unfair dismissal protections, fair pay agreements, trade union processes, pregnancy rights, zero-hour contracts, flexible working, and collective redundancy.

Implementation will be phased, using standard employment law commencement dates of 6 April and 1 October between 2026 and 2027, giving employers time to adapt policies and procedures.

Key Changes Employers Should Know

Predictable Working Patterns

Employees with at least 26 weeks’ service, including those on zero-hours or casual contracts, will have the right to request predictable schedules. Requests must be considered fairly, with employers responding within one month and rejecting only on specific, justifiable grounds, such as cost or operational impact.

Extended Redundancy Protections

Pregnant employees and those returning from maternity, adoption, or shared parental leave will have extended protections during redundancy. They will have priority for suitable alternative roles during leave and up to 18 months after returning to work.

Flexible Working from Day One

Employees can now request flexible working immediately upon starting their role, rather than after 26 weeks. Requests may be made twice per year, and employers must respond within two months. Flexible working can include changes to hours, times, or location, and employers are encouraged to consult employees even if the request may be refused.

Leave for Unpaid Carers

A new statutory right to unpaid carers’ leave will allow employees to take up to five days per year to care for a dependent with long-term needs. This applies from day one and can be taken in full or half days. Employers must manage this separately from other absences and ensure employees are not penalised.

Employer Implications

Employers are likely to feel the impact more acutely than larger organisations. Key challenges include:

• Workforce Planning: Managing predictable schedules and flexible working may require rota adjustments or additional staffing.

• Policy and Contract Reviews: Employment contracts, handbooks, and onboarding processes will need updating to comply with new requirements.

• Financial and Administrative Strain: Changes can affect productivity, necessitating temporary cover or workload redistribution, which may create additional costs.

Compliance Risks

Non-compliance could result in:

• Employment Tribunal Claims: Employees may take legal action if their rights are violated.

• Financial Penalties: Tribunal awards, legal costs, and settlements can be significant.

• Reputational Damage: Public disputes can affect the business’s reputation with clients, staff, and future hires.

Steps Employers Can Take Now

1. Audit Policies and Contracts: Review current employment documents to identify gaps and align with upcoming changes.

2. Assess Flexible Working and Leave Processes: Ensure systems can manage increased requests and maintain predictable schedules.

3. Train Managers: Prepare line managers to handle requests, leave, and policy changes consistently and legally.

4. Monitor Government Updates: Stay informed about consultations and implementation timelines.

5. Seek External HR Support: without in-house HR can benefit from expert guidance to audit, update policies, and plan for compliance.

How Kirby HR Consultancy Can Help

Kirby HR supports SMEs in navigating new employment legislation, offering tailored solutions to meet organisational needs.

• HR Unlimited: Comprehensive, ongoing outsourced support for year-round HR needs.

• HR on Demand: Flexible, short-term support for businesses requiring occasional HR expertise.

By partnering with Kirby HR, businesses can ensure compliance, reduce risk, and implement employee-friendly policies efficiently. Preparing early for the Employment Rights Bill will save time, reduce stress, and position your business ahead of the changes.