How HR Teams Should Prepare for the UK Employment Rights Bill (2026 Update)

You’re likely aware that major legislative changes, like the new UK Employment Rights Bill (now set to become the Employment Rights Act 2025), are more than just paperwork - they can reshape your talent strategy overnight. With many provisions now agreed and the Bill cleared by the House of Lords, companies must be ready for significant changes to employment contracts, workers’ rights, and compliance requirements in 2026 and beyond.

Below, we break down the pivotal elements of the Bill as it is expected to become law, so your HR and Talent teams can prepare effectively.

1. What Changes Does the New UK Employment Rights Act Bring?

1.1 What Are the Main Changes?

The Employment Rights Act 2025 introduces wide-ranging reforms intended to modernise UK employment law and strengthen worker protections. These will be introduced in phases from early 2026 through 2027.

Worker Protections & Rights

Unfair Dismissal Rights

• The government abandoned the original plan for unfair dismissal protection from day one.

• Instead, employees will have the right to claim unfair dismissal after six months’ continuous service (down from the current two-year threshold).

Implementation: This change is expected to take effect in 2027.

Statutory Sick Pay (SSP)

• SSP entitlement will start from the first day of illness, rather than after three waiting days.

• The lower earnings limit (a payment threshold that previously prevented many low-earners from qualifying) will be removed, making SSP available to more workers.

Implementation: Planned for April 2026.

Parental & Paternity Leave

• Day-one rights to paternity leave and ordinary parental leave are being introduced - meaning employees can take these leaves from their first day of employment.

Implementation: Scheduled for April 2026.

Ban on Exploitative Contracts

• The Act strengthens protections against exploitative zero-hours contracts by giving workers rights to reasonable notice of shifts and to be offered a guaranteed hours contract where patterns justify it.

Flexible Working

• Employers will have to provide clear justification if they refuse a flexible work request - enhancing workers’ ability to secure agile work arrangements.

Harassment & Fire-and-Rehire

• Duties on employers to take reasonable steps to prevent harassment at work will be strengthened.

• Practices such as fire-and-rehire will be curtailed by deeming certain dismissal-to-impose-terms actions as automatically unfair unless absolutely necessary.

1.2 Implementation Timing You Need to Know

2. Preparing Your Talent Team for the Changes

2.1 Updating Employment Contracts

Updating employment contracts in light of new legal amendments is crucial. First, review current contracts to identify any clauses conflicting with the updated provisions of the UK Employment Rights Bill. An errant clause could lead to significant legal exposure. Next, consult with employment lawyers to craft precise language that encapsulates new worker rights. Draft potential updates to include:

• Flexible work arrangements: Ensure any commitments to flexible work are clearly detailed.

• Redundancy procedures: Specify any changes to consultation processes or compensation for redundancies.

Tailoring contracts to the specific requirements of different roles can also prevent compliance issues. Sales personnel might need distinct clauses, compared to tech staff, especially if remote work is more integral to their role. Consider piloting new contracts with a small group to gauge efficacy before full-scale implementation. Maintain open channels of communication with employees about these updates, reinforcing that changes are there to protect and enhance their employment conditions.

2.2 Training Managers and HR on the New Rights

Training is essential for managers and HR teams to ensure they understand new worker rights. Begin with comprehensive workshops led by employment law experts, focusing on the practical application of the updated regulations. Such sessions should cover:

• Leadership's role in compliance: How managers can model and enforce compliant behaviours.

• Scenario-based learning: Use case studies to illustrate common compliance pitfalls and effective responses.

Follow up with regular Q&A sessions, fostering an ongoing dialogue about challenges and best practices. Empower managers to become advocates for these changes by providing them with readily accessible resources - consider an internal web portal with guides, FAQs, and updates to the legislation.

Pro-tip: Leverage platforms like Go1 for continual learning, offering courses specific to employment law and compliance best practices.

Monitoring and feedback mechanisms will also play a crucial part. Encourage HR teams to collect feedback on the training's effectiveness and adjust future programmes accordingly. Keeping the dialogue open ensures that as interpretations of the new bill evolve, your team remains at the forefront of compliance.

2.3 Implementing New Processes for Compliance

To ensure your organisation adheres to the new regulations, you'll need robust processes. Begin by creating a compliance task force, drawing members from key departments such as HR, legal, and finance. This team is pivotal in developing and overseeing new procedures. Make sure to:

1. Standardise hiring protocols: Reduce bias by implementing structured and data-driven hiring processes.

2. Update HR systems: Ensure they're equipped to track and report compliance metrics efficiently.

3. Conduct Regular audits: Schedule audits to evaluate compliance levels across departments.

Implementing a feedback loop within these processes is vital. Regularly engage your workforce, both formally and informally, to assess the clarity and effectiveness of implemented changes. Employees' insights can spotlight gaps, prompting timely adjustments.

3. Ensuring Ongoing Compliance with the New Regulations

3.1 Setting Up Regular Review Processes

Setting up regular review processes ensures that you continuously align your talent practices with the evolving regulations. Begin by scheduling periodic audits of all employment contracts. This proactive step can catch discrepancies early.

• Monthly Reports: Track compliance metrics regularly.

• Quarterly Compliance Meetings: Discuss and update on any legislative changes.

• Annual Contract Reviews: Go through all existing contracts for required amendments.

Another method is creating a checklist tailored to your organisation's needs. This checklist should cover potential risks, regulatory updates, and specific areas like contract clauses and employee rights. Such systematic reviews help in maintaining compliance and avoiding unwanted penalties.

3.2 Engaging with Legal Experts for Updates

Relying solely on internal resources may not suffice due to the technical nature of legal updates. Engaging with external legal experts ensures you access authoritative guidance. These specialists offer insights into nuanced policy changes that you might overlook.

• Legal Workshops: Participate in sessions focused on the Employment Rights Bill.

• Subscriptions to Legal Updates: Services like LexisNexis provide timely updates.

• Regular Consultations: Schedule bi-annual sessions with legal advisors.

Collaborating with these experts enables your HR team to ask specific questions about implementation and implications of new regulations. The advice received can then be adapted to align with your unique business needs.

Pro-tip: Attend industry conferences and seminars where such experts discuss legislative changes. This not only keeps you informed but also allows you to network with peers facing similar challenges.

3.3 Developing a Culture of Transparency and Accountability

Creating a transparent and accountable culture within your organisation fosters trust and ensures adherence to new regulations. Begin by openly sharing updates about the Employment Rights Bill and its implications across all levels of the company.

• Regular Updates: Use newsletters or meetings to inform employees of changes.

• Feedback Platforms: Implement systems where employees can express concerns.

• Clear Guidelines: Clearly outline compliance roles and responsibilities.

Establishing an open feedback loop where employees feel comfortable discussing issues helps in identifying compliance gaps early. Providing training sessions about new rights and their responsibilities encourages proactive employee engagement.

In conclusion, preparing for the new UK Employment Rights Bill requires a strategic focus on compliance mechanisms. By setting up regular review processes, engaging with legal experts, and fostering a culture of transparency, your talent team can adeptly navigate these changes. These steps not only safeguard your business but enhance employee trust and engagement.