10 December 2025

Employment Rights Bill Roadmap - What small businesses need to know

The Employment Rights Bill is about to reshape UK employment law, bringing about the biggest shift in decades. Naturally, what most small business owners want to know is: When do these changes actually start, and what should I be doing now?

Here's an overview to help you get prepared.

Where is the Bill now?

The Bill is nearing the end of its journey through Parliament, but repeated amendments from the House of Lords mean only a handful of changes are likely to come into force before the end of the year.

What's changing and when?

The government published an official Implementation Roadmap in July 2025, setting out a phased schedule of when employers can expect each change to take effect. Like the Bill itself, the roadmap is subject to change, but it gives a rough indication of what's happening when.

Here's the breakdown:

Changes expected April 2026

April will see an overhaul of statutory sick pay, with the current three waiting days and lower earnings limit removed. Employees will also gain day one rights to paternity leave and unpaid parental leave, giving families greater flexibility from the outset. In addition, the period for collective redundancy protective awards will increase, strengthening protections during large-scale redundancy situations.

Other changes include:

• Creation of a Fair Work Agency to enforce employment rights and support workers
• Simplification of the trade union recognition process and electronic and workplace balloting
• Reports of sexual harassment treated as protected disclosures for whistleblowing purposes
• Introduction of equality action plans (voluntary from April 2026, expected to become mandatory in 2027) covering gender pay and menopause support

Changes expected in October 2026

The rollout of the Bill continues in October 2026, with several important reforms expected to take effect. The most significant changes include new restrictions on fire and rehire, preventing employers from unilaterally imposing less favourable contract terms; new obligations on employers to take all reasonable steps to prevent sexual harassment, including harassment by third parties; and changes to employment tribunal time limits, giving employees a longer window to bring claims.

Several trade union related changes are also expected:

• Duty to inform workers of their right to join a union
• Strengthening of unions' rights of access
• New rights and protections for trade union representatives
• Extension of protections against detriments for taking industrial action

Changes expected in 2027

Looking ahead to 2027, several major changes to UK employment law are expected, though the exact timings are still to be confirmed. Among the most significant proposals is the introduction of greater protection against unfair dismissal. This could see employees gaining the right to claim unfair dismissal from much earlier in their employment.

Initially, there was talk of "day one" protection, which would allow employees to bring a claim for unfair dismissal from their very first day on the job, removing the current requirement to have two years' continuous service. However, following discussions in December 2025, the House of Lords recommended reducing the qualifying period to six months instead of making it a day-one right. The House of Commons has accepted this suggestion, and though exact details are still being finalised as the Bill continues its journey between the two Houses, it is likely to take effect from 1 January 2027, with employees who start working from 1 July 2026 having the extra protection.

Another significant amendment proposed by the Lords is the removal of the statutory cap on compensation for unfair dismissal claims. At present, the cap is set at either 52 weeks' pay or £118,223 (whichever is lower). If this change proceeds, it could make compensation awards for unfair dismissal far more substantial.

Beyond unfair dismissal, there are also important changes planned for those on zero-hours and low-hours contracts. New rules are anticipated to introduce the right to guaranteed working hours (for employees who want them), require reasonable notice of shifts, and oblige employers to provide compensation for cancelled or altered shifts. Additionally, there will be a new requirement for employers to act "reasonably" when refusing requests for flexible working.

As these proposals are still being debated in Parliament, organisations should keep a close eye on developments and start preparing for potentially significant shifts in employer obligations and employee rights in the coming years.

Other changes include:

• Equality action plans becoming a requirement
• Increased rights for pregnant workers
• Updates to the industrial relations framework
• New collective redundancy consultation threshold
• Day one right to bereavement leave

What should you do now?

Most of these changes won't kick in until 2026/27, so there's plenty of time to prepare. 2025 will mostly be about consultations and fine-tuning the details; however, there are a few steps you can take now to ensure you're not caught off guard or left scrambling later.

1.      Strengthen sickness absence management

• Check your policy: With SSP payable from day one, ad-hoc sickness absence may increase. Review your absence management policy to ensure it has clear trigger points and that these are communicated to employees.
• Train managers: Make sure they are equipped to address absences effectively, and that they hold return-to-work meetings after each absence. This helps deter unnecessary time off and identify any underlying issues needing attention or reasonable adjustments (which may require input from GPs or occupational health).

2.      Review contracts and staff handbooks

• Plan and prepare: Review your contracts and staff handbooks, particularly sections covering sick pay rules and dismissal procedures. Don't make changes yet - wait until the finer details are confirmed.
• Ensure flexibility: Heavy restrictions on fire and rehire will make it harder to change terms and conditions in future - so make sure your contracts include a clear variation clause.
• Think ahead: Consider whether your operating hours are suitable or if staff may need to support other locations. Address these changes early, document key discussions carefully, and follow the ACAS code. If you can't reach agreement and are considering dismissing and re-engaging staff, seek guidance from ACAS or the WorkNest team.
• Record keeping: This will be especially important when the time limit for bringing tribunal claims increases from three months to six months. Keeping records as you go will help you avoid scrambling to recall situations that happened many months earlier.

3.      Stay informed

Keep track of consultation outcomes and the final details of each change as the Bill progresses, particularly around sick pay and dismissals. Watch out for WorkNest webinars for updates and guidance to help you stay ahead.

Got a question?

Keeping up with employment law changes can feel like an overwhelming task. Fortunately, FODO members have access to expert Employment Law and Health & Safety advice and guidance documents provided by WorkNest.

Don't hesitate to contact us with any questions or concerns - we're here to help you understand and navigate these reforms confidently, keeping your business compliant and protected.

Simply call the FODO Employment Law and HR Advisory Service on 01244 688 422 or email [email protected] with your membership number and a member of the team will be happy to help.