EMPLOYMENT RIGHTS BILL: PREPARING FOR CHANGE
The Employment Rights Bill (ERB) is set to bring significant reforms to UK employment law. Employers should begin preparing now to ensure compliance and mitigate risks.
Following more consultation and debate, the final Bill has now passed the House of Commons stage.
Below is an overview of the key changes (including the more recent clarifications) and practical steps businesses can take.
We recently held a webinar to talk through the updates. If you would like to watch the webinar, please click HERE
1. Strengthened Duty to Prevent Sexual Harassment
The ERB will introduce a stricter duty on employers to prevent workplace harassment, including third-party harassment by customers, contractors, or suppliers. Employers should:
Conduct risk assessments to identify and mitigate harassment risks.
Review anti-harassment policies and ensure they are robust.
Provide training for staff and managers on recognising and addressing harassment.
Ensure third-party contracts explicitly prohibit harassment.
Monitor and respond to harassment reports proactively.
2. Removal of the Two-Year Qualifying Period for Unfair Dismissal
From autumn 2026, employees will be protected from unfair dismissal from day one of their employment. Employers should:
Educate managers on this change.
Implement structured probation reviews at 3, 6, and 9 months.
Strengthen recruitment processes to secure the right talent.
3. Collective Redundancy Changes
The government has modified its initial proposals, but significant changes remain:
Whilst we await more details, employers will likely have to track redundancies across a certain percentage of the organisation, not just individual sites.
The protective award for failure to consult will double from 90 to 180 days.
The minimum consultation period for large-scale redundancies (100+ employees) may extend from 45 to 90 days.
Employers should consider appointing employee representatives in advance.
4. Restrictions on Dismissal and Re-engagement ("Fire and Rehire")
The ERB will tighten restrictions on changing employment terms without employee consent. Employers considering contractual changes should:
Begin consultations early.
Build a clear business case for changes.
Engage employees and explore incentives for agreement.
5. New Protections for Zero-Hours Workers
While zero-hours contracts remain legal, employers will have to offer guaranteed hours to workers who regularly work beyond their contracted minimum over a 12-week reference period. Key considerations include:
Identifying affected workers and assessing the impact.
Reviewing seasonal staffing needs and fixed-term contract options.
Preparing for additional administrative burdens and potential tribunal claims.
The extension of these rights to agency workers.
6. Trade Union Law Reforms
The ERB will make industrial action and trade union recognition easier:
Ballot thresholds for strike action will be lowered.
Notice periods for industrial action will be reduced to 10 days.
Trade unions will gain stronger workplace access rights.
Employers will need to provide new hires with information on union membership.
Blacklisting protections will be strengthened.
Next Steps for Employers
Policy Reviews: Update harassment, redundancy, and consultation policies.
Training: Educate managers on unfair dismissal changes and harassment prevention.
Workforce Planning: Assess reliance on zero-hours contracts and prepare for guaranteed hours obligations.
Employee Engagement: Consider alternative forums for staff concerns to mitigate union activity.
The ERB represents one of the most significant shifts in employment law in recent years. Proactive preparation will be key to ensuring compliance and maintaining effective workplace relations.
For further advice on these changes, please contact our employment law team.