Navigating the Employment Rights Bill: Key Changes for 2025-2027

The Employment Rights Bill is set to bring some of the most significant changes to UK employment law in decades. With implementation spread across 2025 to 2027, the roadmap covers everything from new day-one rights and extended tribunal deadlines to reforms on zero-hours contracts and redundancy processes. For small and medium-sized businesses, staying ahead of these changes will be key to remaining compliant and minimising risk. This guide gives you a clear overview of the planned reforms and what they could mean for your organisation. Whether you’re reviewing contracts, updating policies, or simply trying to keep pace, understanding the Employment Rights Bill roadmap is a smart first step.

Key changes will take effect in phases:

Immediate Legislative Repeals and Industrial Action Protections: These changes are expected shortly after Royal Assent in Autumn 2025. They mark a reversal of recent legislation and reinforce worker protections around strike action.

Repeal of the Strikes (Minimum Service Levels) Act 2023: Employers will need to prepare for more empowered industrial action, particularly in unionised sectors.

Protection for Lawful Industrial Action: It will be automatically unfair to dismiss employees for participating in lawful strikes within the first 12 weeks. SMEs may need to revisit disciplinary policies and strike protocols.

This phase introduces a new set of legal entitlements from the first day of employment and sets up an enforcement body to ensure employer compliance.

Day-one rights to Statutory Sick Pay, Unpaid Parental Leave, and Whistleblower Protection: Contracts and onboarding processes will need updating. SMEs that previously excluded lower earners or casual staff must now extend basic rights from day one.

Removal of SSP earnings threshold: This extends SSP eligibility to an estimated 1.3 million more workers, potentially increasing employer sick pay liabilities.

Establishment of the Fair Work Agency: This new enforcement body can investigate non- compliant employers. SMEs should begin internal audits to ensure policies are legally sound.

This group of reforms strengthens employee protections, particularly around consultation and harassment, and lengthens the window for employees to bring claims.

Ban on fire-and-rehire without meaningful consultation: Employers will be legally required to show that all reasonable alternatives were explored before enforcing contract changes. This impacts restructuring and cost-cutting strategies.

Mandatory steps to prevent sexual harassment (including by third parties): SMEs will need proactive policies and training in place to protect workers and limit legal exposure.

Extended employment tribunal claim time limits: With timelines extended from 3 to 6 months, employers should improve documentation and communication in handling disputes.

Simplified trade union recognition: While many SMEs may not have unionised workforces, those with 50+ employees should be alert to potential recognition claims.

The final wave of changes focuses on broader cultural shifts in employment practices and introduces several new workplace rights that support predictability, equality, and retention.

Day-one right to claim unfair dismissal: SMEs must adopt structured probation processes and document performance concerns carefully, as protection begins from day one.

Zero-hours contract reform: After 12 weeks, casual workers can request guaranteed-hourscontracts. Employers will need to track hours and consider predictable shift patterns.

Gender pay gap and menopause action plans: Likely to apply to larger SMEs, theserequirements aim to improve inclusivity and retention, but may require new HR strategies.

Includes new entitlements such as:

These changes are expected to impact SMEs in a number of ways — both in terms of legal obligations and how they manage their workforce. Key implications include:

Contract updates: Existing templates will need to reflect day-one rights, new dismissal protections, and guaranteed-hours options.

HR policy reviews: Employers will need to revise absence policies, harassment protocols, and redundancy procedures. Manager training: Supervisors and team leads should understand the new obligations around dismissal, harassment, and probation.

Payroll and resourcing: Changes to SSP eligibility and flexible contracts may impact budgets, forecasting, and scheduling.

Increased risk exposure: With tribunal timeframes extended and protections expanded, employers may face greater scrutiny and liability if unprepared.

Preparing early means SMEs can avoid costly disputes, ensure compliance, and strengthen employee engagement at the same time.

Here are five practical ways employers can prepare:

The Employment Rights Bill roadmap is a significant overhaul of workplace protections and employer responsibilities. While many changes won’t come into force until 2026 or 2027, the smartest step employers can take now is to begin reviewing their HR processes and policies with their HR provider.

Staying proactive gives SMEs time to manage risks, communicate clearly with employees, and make any necessary adjustments before enforcement begins. Whether it’s preparing manager training, revisiting employment contracts, or planning for consultation processes, these reforms are an opportunity to strengthen your business from the inside out.

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