What the Employment Rights Bill Means for Your Business

The Government has released its official implementation roadmap for the Employment Rights Bill the most substantial overhaul of UK employment law in over 20 years. While headline changes such as zero-hours contract reform and “day one” unfair dismissal rights are now confirmed for 2027, a major first phase of changes will take effect from April 2026, followed by a second wave in October 2026.

These reforms signal a clear shift towards stronger employee protections, greater regulatory scrutiny, and more formalised standards around pay, leave, consultation, and conduct.

Employers who act now will be best placed to manage risk, control costs, and maintain a strong employer brand in a fast-changing legal landscape.

What’s Changing in April 2026?

• Enhanced paternity and unpaid parental leave rights – available from day one of employment
• Stronger protections for whistleblowers
• Creation of a new Fair Work Agency – a statutory body for oversight, enforcement, and guidance
• Reform of Statutory Sick Pay (SSP) – including the removal of the lower earnings limit and waiting days
• Increased protective awards for failures in collective redundancy consultation – doubling to a maximum of 90 days’ pay
• Simplified trade union recognition process

This is the first step in a two-stage rollout. The second wave of changes, due in October 2026, introduces a wider set of workplace reforms across multiple sectors and industries.

What’s Coming in October 2026?

From October 2026, a broader package of legislative changes will come into force, including:

• A new legal duty on employers to take “all reasonable steps” to prevent sexual harassment, including from third parties such as clients or customers
• A new Code of Practice on dismissal and re-engagement (“fire and rehire”), requiring employers to follow fair consultation procedures or risk tribunal penalties
• Strengthened protections for trade union members and representatives, including:
  • A duty to inform workers of their right to join a trade union
  • Greater union access rights in workplaces
  • New rights for trade union reps, and
  • Extended protection against detriment for participating in industrial action

• Tighter rules on tipping, requiring employers to fairly distribute service charges and tips to workers
• A simplified employment status framework, aiming to reduce confusion between employees, workers, and self-employed individuals
• Updates to the Acas Code of Practice on flexible working to align with recent statutory changes
• Extended time limits for bringing employment tribunal claims, providing employees with more time to seek redress
• Sector-specific reforms, including the creation of a Fair Pay Agreement Negotiating Body for Adult Social Care, aimed at improving minimum pay and conditions

These reforms reflect a cultural and legal shift towards fairer treatment, improved access to representation, and safer, more inclusive workplaces.

A Closer Look at the Fair Work Agency

The Fair Work Agency, due to be operational by April 2026, will act as a central enforcement and support body for the new employment rights framework. Its expected functions include:

• Promoting compliance with employment law and good workplace practices
• Providing guidance and support to employers and workers
• Investigating breaches of employment rights and referring cases for enforcement
• Working in collaboration with existing bodies such as the HSE, EHRC, and ACAS

The agency is intended to serve as a “one-stop shop” for oversight and intervention particularly in protecting vulnerable or lower-paid workers. For employers, it represents both a valuable source of guidance and a signal of increasing regulatory scrutiny.

How Employers Can Prepare Now

1. Review Family Leave Policies
With parental and paternity leave becoming available from day one, update your policies now to reflect this change. Early adoption helps meet compliance obligations and enhances your position as an inclusive employer.

2. Reassess SSP Budgets and Absence Management
More employees will qualify for SSP from day one. Prepare by:

• Modelling SSP cost impacts
• Strengthening absence reporting systems
• Training line managers to hold effective absence conversations and spot patterns

3. Strengthen Whistleblowing and Harassment Procedures
Employers will be expected to take active steps to prevent sexual harassment and protect whistleblowers. Prepare by:

• Auditing and updating relevant policies
• Providing training on confidentiality, reporting, and culture
• Conducting risk assessments in customer-facing or isolated working environments

4. Review Redundancy and Consultation Processes
With protective awards increasing, ensure your processes are:

• Timely, well-documented, and fully compliant
• Backed by accurate redundancy and notice pay calculations
• Genuinely exploring suitable alternative employment

5. Understand and Monitor Union and Representation Rights
Stay up to date with expanded union-related rights, from access and information duties to protections for representatives and those taking lawful industrial action.

6. Check Sector-Specific Obligations
If you operate in hospitality, public contracts, or adult social care, review how upcoming reforms (tipping, procurement code, pay agreements) may affect your business.

Looking Ahead

The April and October 2026 reforms are laying the groundwork for even more transformative changes in 2027. Employers who invest in compliance, culture, and communication now will be far better placed to avoid legal risk, respond to employee expectations, and build resilient, engaged workforces.

The newly created Fair Work Agency will bring both support and scrutiny. Navigating these reforms confidently means understanding not just what’s coming but how it shapes your organisation’s responsibilities in practice.

Contact us at HR@skaltd.co.uk or call 01427 420 403 and #oneoftheteam will be able to help.