Following a flurry of news earlier in the year about the government’s employment rights bill, all has been quiet for a couple of months. The government has probably had other things to worry about in the short term. However, they have now published their Roadmap for implementation of the new legislation. The good news is that significant changes that we thought might come in this year will not be implemented until 2026 or 2027, allowing more time to prepare.
Below we highlight the key changes that we believe will affect small businesses.
Changes that will come in this October relate to union activities and largely undo the restrictions implemented by the previous government and are unlikely to greatly affect small businesses. These include:
- Removal of the requirement for minimum service levels during a strike
- Simplification of industrial action notices and industrial action ballot notices
- Protection against dismissal for taking industrial action
In April 2026, additional measures will come into force. These include:
- Paternity Leave and (unpaid) Parental Leave from day 1 of employment rather than after a qualifying period
- Statutory Sick Pay from day 1 of sickness absence and removal of Lower Earnings Limit to qualify for SSP
- Enhanced protection for whistleblowers
October 2026 will see the introduction of:
- A ban on “fire and rehire” practices which may make it difficult to introduce changes to employment contracts if employees don’t agree to them
- A duty to inform workers of their right to join a trade union and giving trade unions greater rights of access to employees
- Requiring employers to take “all reasonable steps” to prevent sexual harassment of their employees (currently “reasonable steps”) which will include sexual harassment by third parties
- Additional rights relating to Trade Union activities
In April 2027, we can expect to see:
- Day 1 protection from unfair dismissal (currently 2 years). Proposals include a probationary period of up to 9 months during which a less onerous process will be required
- Additional rights for pregnant workers
- Introduction of Bereavement Leave
- Changes to flexible working regulations
- Ending the use of “exploitative” Zero Hours Contracts – although this is yet to be defined
- Regulation of umbrella companies
Consultation is ongoing about many of the measures and amendments may be introduced.
One such amendment has been announced already, which is that “non-disclosure agreements” will be banned in relation to harassment and discrimination. This includes such clauses in settlement agreements and will no doubt affect the use of such agreements by employers.
As you can see, this is a developing landscape that will require significant changes in management practices. We will continue to keep you informed as things evolve, but please get in touch if you have any questions in the meantime.
As always, we are on hand to help and advice with this and other HR matters. Call us on 01484 841776 to speak to a member of our team or email [email protected]
