Government Unveils Roadmap for Employment Rights Bill – What Are the Implications for Your Business?
Government Unveils Roadmap for Employment Rights Bill – What Are the Implications for Your Business?
Following publication of the Employment Rights Bill in October 2024, the Government has now set out a comprehensive implementation roadmap. This outlines a phased timeline for one of the most significant overhauls of UK employment law in decades.
The reforms are aimed at raising living standards and strengthening workplace protections. It’s estimated that they will affect around 15 million workers – nearly half of the UK workforce.
Part of the Government’s Make Work Pay and Plan for Change agendas, the Bill introduces new entitlements for employees, creates stronger enforcement mechanisms, and sets out clearer obligations for employers.
Key Changes and Implementation Timeline
The Bill will be rolled out in phases from 2025 through to 2027, giving employers time to prepare and adapt.
Immediate (once granted Royal Assent)
- Repeal of the Strikes (Minimum Service Levels) Act 2023 and most of the Trade Union Act 2016.
- New protections against dismissal for workers involved in industrial action.
From April 2026
- Statutory Sick Pay (SSP): no lower earnings limit and no waiting period.
- Day-one rights to paternity leave and unpaid parental leave.
- New whistleblowing protections.
- Establishment of the Fair Work Agency to enforce rights.
- Doubling of the maximum protective award period in collective redundancy cases.
- Simplified trade union recognition processes and electronic/workplace ballots.
From October 2026
- Ban on fire and rehire practices.
- Creation of a fair pay agreement body for adult social care in England.
- Strengthened tipping laws, requiring consultation with workers on distribution.
- Employers required to take “all reasonable steps” to prevent sexual harassment, including from third parties.
- Further protections for trade union representatives.
From 2027
- Enhanced dismissal protections for pregnant women and new mothers.
- Bereavement leave entitlement.
- End of exploitative zero-hours contracts, with a right to predictable hours.
- Day-one rights to unfair dismissal protection.
- Expanded flexible working rights.
- Voluntary gender pay gap and menopause action plans (trialling from April 2026).
- A modernised framework for industrial relations.
What This Means for Employers
These reforms represent a major shift in the employment landscape. Employers will need to prepare for:
- Reviewing contracts and policies – particularly around zero-hours arrangements, dismissal procedures, and leave entitlements.
- Adjusting HR strategies – to reflect new rights, obligations, and workplace protections.
- Stronger compliance requirements – with the creation of the Fair Work Agency and an emphasis on enforcement.
- Closer engagement with trade unions – as access rights and recognition processes are widened.
Sectors such as hospitality, retail, and social care, where flexible contracts and variable hours are common, may see the greatest impact.
Looking Ahead
The Government has said it will provide detailed guidance ahead of each implementation date, supported by Acas and other advisory bodies. The phased approach is intended to give businesses the clarity and time they need to plan effectively.
Employers should take this opportunity to review their current practices, contracts, and risk management processes, so that they are ready for the changes as they come into effect.
For further detail, you can read the Government’s roadmap in full here.