The Employment Rights Bill introduces the most significant shift in UK employment law in over a decade. With changes being phased from late 2024 to April 2027. The direction is clear: stronger worker protections, more regulatory intervention, higher financial risk for employers, and greater union influence. Organisations need to prepare progressively rather than wait for final legislation.
TL;DR:
- Rollout through 2027: key reforms will land in stages from late 2024 to 2027 – ongoing monitoring and phased preparation are essential.
- Redundancy & TUPE risk increases: protective awards to double to 180 days’ gross pay, thresholds to apply across the whole business, and intra-group transfers can trigger TUPE. Consultation failures in these areas will become significantly more expensive.
- Harassment rules tighten sharply: employers must prove all reasonable steps were taken; liability extends to third parties; harassment complaints become protected disclosures, and NDAs can’t silence them.
- Unfair dismissal: following deadlock between the House of Lords and the Commons, the two-year qualifying period will be reduced to six-months. This reduction is expected to occur in 2026.
- Fire-and-rehire effectively banned in 2026: only permitted in very limited circumstances e.g. genuine business distress.
- Union influence expands: recognition threshold may fall from 10% to 2%; access and ballot reforms (including in required turnout for strike action) expected in 2026.
- Mandatory equality action plans: employers with 250+ staff must publish pay-gap action plans.
- Disputes to be more uncertain for longer: tribunal limits extend from three to six months; ACAS conciliation to 12 weeks.
- New Fair Work Agency: very wide investigatory powers and ability to pursue claims without employee consent.
- Budget 2025: freeze in employers’ NICs threshold and revised minimum-wage trajectory.
LegalEdge’s Head of Employment, Nick Pritchett, sets out his key tips on what businesses need to consider in the short and long term:
1. Timeline & Implementation
The Bill is progressing through Parliament with phased changes from Royal Assent this year through to April 2027.
- Early changes activate immediately (e.g. repealing the minimum service levels required for strike actions in emergency services).
- Most major reforms require additional regulations and guidance, meaning gradual rollout.
- The staggered approach demands ongoing attention from HR and legal teams.
- Electronic balloting for unions will take effect immediately after Royal Assent.
Key dates:
- 2026 – timing TBC: reduction of qualifying period from six to three months
- April 2026: changes to collective redundancies, SSP, parental-leave, and enforcement reforms.
- October 2026: fire-and-rehire ban, harassment reforms, extended tribunal deadlines to apply.
- April 2027: Zero-hours reforms, extended maternity protections, statutory bereavement leave
2. Redundancies, TUPE & Collective Consultation
Protective awards
- Maximum award doubles from 90 to 180 days’ gross pay per affected employee.
- Failures in consultation during mass redundancy or certain reorganisations become far costlier.
- Government may further remove the “establishment” test and move to percentage-based thresholds (subject to consultation).
Thresholds
- The ‘20 employees’ trigger applies across the whole business or group, not by site.
- More restructures will unintentionally cross the threshold, requiring full consultation.
TUPE
- The risk of protective awards applies to consultation requirements for intra-group transfers, following for example, asset transfers, and reorganisations,
- No minimum employee numbers.
Action: Update redundancy playbooks, introduce consultation governance, train HR and managers, take advice early on potential TUPE situations.
3. Harassment, NDAs & Whistleblowing
New employer duty
- Must take all reasonable steps to prevent harassment (higher than previous standard).
- Requires proactive action to have been taken before a claim is made, including things like demonstrable recurring training, leadership involvement, and documented prevention measures.
Third-party harassment
- Liability for harassment by customers, clients, and others.
Protected disclosures
- Sexual harassment complaints become protected whistleblowing disclosures.
- NDAs cannot silence such complaints.
- Retaliation is automatically unlawful.
Action: Refresh training, update policies, review settlement practices, and strengthen reporting channels.
4. Unfair Dismissal & Probation (Updated Dec 2025)
Significant policy change: the Government has reversed the commitment to day-one unfair dismissal and will replace the current two-year qualifying period with a six-month qualifying period (the detail and timing to be set in regulations but expected to occur in 2026). Employers should therefore plan on a six-month window where unfair dismissal rights will apply after six months’ service — this is a change from both the pre-Bill two-year position and the earlier day-one proposal.
Probation
While the statutory probation concept is no longer needed; employers should still build robust 6-month probation management and documentation into process design.
Fixed-term contracts
Do not avoid unfair dismissal rights; renewals count towards continuous service.
Action: improve recruitment screening, implement structured probation reviews, train managers on documentation and dismissal rationale consistent with a six-month qualifying threshold.
5. Fire-and-Rehire Restrictions (October 2026)
Dismissal and re-engagement to force new terms will become automatically unfair, except in narrowly defined situations such as evidencable distress.
Action: Review change-management strategies and consult early on any contractual variations.
6. Flexible Working
Employers must show refusals are objectively reasonable, not just rely on statutory reasons.
- Heightened evidence requirements.
- Stronger discrimination considerations.
Action: create a documented decision framework and train managers in lawful, consistent handling.
7. Union Recognition & Industrial Action
The Bill simplifies union recognition and enhances union access.
- Recognition threshold may reduce from 10% to 2%.
- Consultation reforms increase union involvement in workplace change.
- Ballot and access reforms expected in October 2026.
Action: Strengthen employee-voice mechanisms and train managers on lawful union interactions.
8. Sick Pay, Parental Rights & Other Protections
Effective April 2026 onward:
No three-day waiting period for SSP → payroll and systems changes.
Day-one parental and paternity leave rights (not pay).
Bereavement leave becomes a universal right (typically unpaid except for the existing Parental Bereavement Leave already in force).
Maternity dismissal protection expected to extend to six months post-return and apply to any dismissal.
Zero-hours contracts – from April 2027, among other changes, workers can request contracts reflecting actual working patterns. Details awaited but likely to reduce casualisation.
9. Equality Action Plans (250+ Employees)
Employers must publish equality action plans alongside gender pay gap data.
Action: build KPIs, timelines, ownership and use existing gender pay reporting as the foundation.
10. Strategic Context – Costs & Automation
Rising labour costs and Budget changes increase pressure on employers:
• National Living Wage (NLW): announced increase to £12.71/hr from April 2026 —s.
• Budget changes to pension salary-sacrifice and future NI treatment (cap on salary-sacrifice benefits from 2029) will affect reward design — review benefits packages.
Action: update payroll forecasts and pricing model
Strategic Priorities:
- Strengthen restructuring governance and consultation processes before April 2026.
- Upgrade harassment prevention, training, and reporting systems.
- Rebuild the hiring–onboarding–probation pipeline to manage early dismissal risks (plan on a 6-month qualifying window).
- Prepare for increased union presence and raise industrial-relations capability.
- Enhance HR data, diversity reporting, and equality action planning capability.
- Model cost impacts (SSP, NI, minimum wage, compliance) and assess automation opportunities.
- Prepare for longer dispute timelines due to extended tribunal and ACAS time limits.
To discuss any of the above or how we can help you prepare for these changes get in touch on info@legaledge.co.uk
