The proposed Employment Rights Bill indicates a significant shift in workplace practices, emphasising flexibility, fairness, and modern practices. While it is still moving through Parliament, the overall trend is evident: companies will need to adopt a more transparent, inclusive, and employee-centric approach to work.
For employers, this creates both new responsibilities and opportunities. Anticipating what may come enables businesses to plan proactively, update policies, and remain competitive amid a shifting employment environment.
Why the Employment Rights Bill Matters to Employers?
Working practices have evolved significantly in recent years. Remote and flexible work arrangements are now common, and many businesses depend on part-time or freelance staff to stay agile. However, employment law has not always kept up with these changes.
The proposed Employment Rights Bill aims to update workplace laws by providing more explicit guidance for employers and strengthening protections for employees. For employers, this translates into greater clarity, improved consistency, and a framework better suited to managing today’s workforce in a fair and efficient manner.
What Are the Key Changes in the Employment Rights Bill?
1. Flexible Working: A Day-One Right to Request
Under current legislation, employees have the right to request flexible working from the first day of employment. Flexible working can include changes to working hours, patterns, or location, such as working from home or in a hybrid model.
The proposed changes intend to reinforce this existing right by establishing a clear process for employers to follow when they cannot agree to a request. Employers might need to provide the business reasons behind a refusal and ensure that the decision is reasonable.
2. Pay Transparency and Fair Pay
The Employment Rights Bill places greater emphasis on fair pay and transparency, particularly in sectors where pay and working conditions have been less consistent. While the Bill does not mandate pay audits for all employers, it includes targeted measures to improve fairness and accountability.
These proposals encompass sector-specific pay arrangements, more precise guidelines on tip handling, and higher expectations for larger employers to address issues such as the gender pay gap. Collectively, these changes signify a broader shift toward transparent pay structures and equitable outcomes.
3. Protection During Industrial Action
The Bill proposes increased protections for employees participating in lawful industrial actions, encompassing expanded safeguards against unfair treatment and termination related to such participation. While employers maintain the discretion to manage their workforce and ensure the continuity of business operations, these proposed amendments aim to enable employees to exercise their rights without fear of unjust consequences. For employers, this underscores the significance of establishing clear employee relations policies and addressing collective matters with due consideration.
4. Parental Leave and Statutory Sick Pay
The Bill proposes enhancements to family-friendly rights and sick pay.
Starting in April 2026, Statutory Sick Pay (SSP) is expected to become a day-one entitlement, eliminating the waiting period and lowering the earnings threshold. This change aims to enable more employees to qualify for sick pay from the first day of illness.
Additionally, current rights to paternity leave and unpaid parental leave are anticipated to be available immediately from the first day of employment. These reforms are designed to better support working parents, including new hires.
5. Unfair Dismissal: Shorter Qualifying Period
The Bill proposes reducing the qualifying period for employees to submit an unfair dismissal claim from two years to six months. This modification would enable employees to access protections against unfair dismissal at an earlier stage of their employment.
6. Zero-Hours and Insecure Work
The Bill advocates for initiatives to mitigate insecure employment, with particular emphasis on the utilisation of exploitative zero-hours contracts. It encompasses rights such as:
- Enhanced predictability of working hours
- Advance notification of shifts
- Compensation for last-minute shift cancellations
These measures are designed to provide workers with increased certainty while preserving employer flexibility where genuinely required.
7. Stronger Protections Against Harassment
The proposed amendments aim to enhance employer responsibilities in preventing workplace harassment. Employers will need to take all reasonable steps to stop such misconduct, including actions towards third parties like customers or clients.
When Will the Proposed Changes Take Effect?
The Employment Rights Bill is set to be rolled out in stages over the coming years. Not all changes will occur at once, and some details remain subject to consultation.
- Some changes may take effect once the Bill becomes law or shortly afterwards.
- From April 2026, proposed changes include day-one Statutory Sick Pay and day-one paternity and unpaid parental leave.
- Further changes are expected to be introduced gradually, giving employers time to prepare.
- Employers should stay informed and begin reviewing policies and processes to prepare for the proposed changes.
What Employers Will Need to Do?
Once the Employment Rights Bill becomes law, employers will need to take practical steps to ensure compliance:
- Review employment contracts to ensure they reflect the new legal requirements.
- Update key policies, including flexible working, sick pay, parental leave, and employee relations.
- Review probation and performance management processes to ensure they are fair, clear, and well-documented.
- Review pay practices to support fairness and transparency.
- Assess the use of zero-hours or variable contracts and ensure working arrangements meet the new standards.
- Strengthen harassment and whistleblowing policies and ensure reporting processes are clear and effective.
- Train managers on the updated requirements and how to apply them consistently.
- Ensure employee records and documentation are accurate and up to date.
- Keep up to date with guidance from the government and ACAS.
Conclusion
The Employment Rights Bill signals a significant shift in how work may be regulated in the UK. It reflects a move towards greater flexibility, fairness, and security in the workplace, while aiming to provide clearer frameworks for employers managing a modern workforce.
For employers, the focus is on preparing for change by reviewing policies, contracts, and processes. For employees, the proposed changes aim to strengthen protections, support fair pay, and promote a better work–life balance.
As the Bill progresses through Parliament, staying informed and planning ahead will be key for both employers and employees as they adapt to the future of work.
How can The Infinity Group help?
At The Infinity Group, we understand that changes to employment law can be complex and time-consuming. Our team supports businesses in understanding the proposed Employment Rights Bill and preparing for the changes it may bring.
We work with employers to review policies, contracts, and people management processes, helping them stay compliant and adaptable as requirements evolve. Where appropriate, we also offer an umbrella solution, allowing businesses to place employment and compliance responsibilities with us, reducing administrative burden and risk.
Our approach is practical and flexible, supporting employers whether they wish to manage responsibilities in-house or use our umbrella solution to handle key obligations on their behalf. We aim to help businesses build fair, inclusive, and well-managed workplaces that support long-term success.