You’ve probably seen the headlines: the UK government has published its long-awaited roadmap for the Employment Rights Bill – a sweeping set of reforms described as the biggest shake-up of workers’ rights in a generation.

But what does that actually mean for in-house legal and HR teams?

Here’s a practical explainer of what’s changing, when – and what to do now to stay ahead of the curve.

First up: where we are now

The Bill is currently at committee stage in Parliament, having passed through the House of Commons. If things stay on track, it could receive Royal Assent as early as September or October this year.

That means it’s not law yet – but the publication of a formal implementation roadmap signals serious intent from the government. These changes are coming, and businesses will need to be ready.

First in line? A repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016.

Why it matters:

• Industrial action could increase – especially in union-heavy sectors.
• Protections for striking workers will expand. Currently, dismissal is only automatically unfair if it happens within 12 weeks of protected industrial action. The new rules will remove that 12-week limit.

If your business operates in a high-risk sector for strikes – think transport, healthcare, logistics – now’s the time to strengthen your employee relations strategy and review your playbook for industrial disputes.

April 2026: the first wave of big changes

Most reforms won’t take effect until 2026 or beyond, to allow for consultation. Here’s what’s expected first:

1. Doubling the cap on protective awards

When employers fail to consult properly during large-scale redundancies, tribunals can award compensation (“protective awards”). That cap is currently 90 days’ pay – Labour wants to double it to 180.

What it means: Consultation missteps will carry a heavier financial cost – and skipping process won’t pay. Make sure your redundancy procedures are watertight and well-communicated.

2. ‘Day one’ rights for paternity and unpaid parental leave

Eligibility thresholds (like 26 weeks’ service) will be scrapped. These entitlements will apply from day one.

What it means: New hires will have immediate family leave rights. If your parental leave policies rely on length of service, they’ll need updating.

Crucially, there’s no information yet on whether this “day one” approach will extend to statutory paternity pay. Employers should keep a close eye on future guidance to clarify whether pay entitlements will follow the same route as leave entitlements.

3. A new Fair Work Agency

This body would take over enforcement of rights like minimum wage, working time, sick pay, and holiday pay – shifting the burden from employees to the state.

What it means: Expect more investigations and potential enforcement – especially in lower-paid sectors or those with limited HR oversight. Proactive compliance will be key.

4. Statutory Sick Pay (SSP) reforms

Labour wants to abolish both the lower earnings threshold and the 3-day waiting period.

What it means: SSP would kick in from day one of illness, for all employees – including part-timers and low earners. This will require budget and policy changes for many businesses.

However, it's worth noting that there's no confirmation yet that entitlement to SSP will apply from day one of employment. That detail remains unclear – so you’ll need to keep watching for further updates.

5. Strengthening whistleblowing and union processes

New protections would apply not just to dismissals, but to demotions, suspensions, and other detriments. Union ballots could move online, and recognition rules will be simplified.

What it means: Your whistleblowing and grievance policies may need a refresh. Union recognition processes will need closer monitoring.

October 2026: fire and rehire in the firing line

Labour plans to outlaw “fire and rehire” – unless dismissal and re-engagement is truly essential to business survival.

What it means: Terminating contracts to force through new terms will be an absolute last resort. Employment strategy will need to shift to focus on genuine negotiation and consultation.

Also due in this phase:

• A new fair pay agreement body for adult social care.
• Further obligations around sexual harassment and third-party risks.
• Guidance on tip allocations and expanded rights for trade union reps.

2027 and beyond: long-term changes on the horizon

Looking further ahead, Labour plans to introduce:

• A right to bereavement leave.
• ‘Day one’ protection from unfair dismissal.
• Enhanced rights for pregnant workers and new parents.
• Changes to gender pay gap reporting and menopause support.
• An end to exploitative zero hours contracts.

What it means: These changes will touch nearly every part of the employment lifecycle – from hiring to pay, family leave, and termination. Building flexibility into your policies now will help future-proof your compliance later.

What to do next

Even though many changes won’t kick in for another year or two, smart in-house teams are already:

• Reviewing HR policies and employee handbooks for likely updates.
• Planning contract changes (e.g. to reflect day one rights or SSP eligibility).
• Training managers on upcoming reforms.
• Watching for consultations and guidance to shape implementation.

It’s also worth revisiting your organisation’s approach to employee relations. With union activity likely to rise – and the state taking a more active role in enforcement – it pays to be ahead of the curve.

Thanks for reading – and good luck navigating what’s set to be a busy few years in employment law.

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