Our Trusted Partner Adrian Berwick of AB HR Solutions has shared this article on the Employments Right Bill phaesd reform and roadmap.
The Government has released its roadmap for proposed Employment law changes and with Royal Assent expected in September 2025, there will be a phasing in of changes over the next 2 years.
Consultation is on-going and representation will be made by both Employer organisations – CBI, FSB etc and the Unions but, as with everything – the devil will be in the detail.
These are some of the key dates –
April 2026 – the establishment of the Fair Work Agency as well as new measures for Statutory Sick Pay – SSP (the abolition of 3 waiting days) and parental leave.
October 2026 – an extension of employment tribunal time limits (the period of time that an employee has in which the can bring a claim to a Tribunal – extending from 3 to 6 months) and the end of “fire and rehire”.
2027 – the rollout of major reforms including day one unfair dismissal rights, regulation of zero-hours contracts and the definition of umbrella companies.
Initially, day one dismissal rights and protection were scheduled for Autumn 2026 but this has been pushed back until 2027 which some may say is to allow more time for business to be prepared although cynics might say it is because there are internal differences of opinion within the Labour party about the pace of change.
The full timeline and roadmap is as follows –
September 2025: Royal Assent expected
Immediately after – Repeal of Strikes (Minimum Service Levels) Act 2023, Protections against dismissal for industrial action and simplified trade union ballot notices
April 2026
Day 1 paternity and unpaid parental leave
Whistleblowing protections
Fair Work Agency established
Removal of lower earnings limit for Statutory Sick Pay
Simplified trade union recognition and electronic balloting
Collective redundancy protective award increased
October 2026
End to fire and rehire
Employer duty to prevent sexual harassment
Stronger trade union access and protections
Extension of employment tribunal time limits
New laws for employees who get tips.
2027
Day 1 unfair dismissal rights
Regulation of zero-hours contracts and umbrella companies
Mandatory gender pay gap and menopause action plans
Bereavement leave
Enhanced protections for pregnant workers
New industrial relations framework
Flexible working improvements
Collective redundancy consultation threshold changes
This is very much still work in progress and in the absence of specific detail, it is difficult to be too prescriptive about what employers need to do.
However, the main provision grabbing the headlines is the introduction of day 1 unfair dismissal rights. Currently an employee requires 2 years service before they are able to bring a complaint for Unfair Dismissal to a Tribunal unless they are covered by various protected characteristics including sex, race, sexual orientation, age, disability etc where they would be able to bring a discrimination claim.
But under proposed new legislation, an employee will not need 2 years service. However, there is a suggestion that employees would be subject to some form of statutory probation period, probably not exceeding 6 months and once probation has been successfully completed, their unfair dismissal rights would commence. However, that is somewhat speculative and not 100% clear yet.
In preparation, employers should definitely check that they have probation period clauses in their contracts for new employees and where the probation period is 3 months, it makes sense to make this 6 months and there should be a provision to allow for extension if the probation period is not successfully completed at 6 months. Also, if not doing this already, make sure there are mechanisms in place for monitoring performance throughout the probation period.
Also, tucked away in the proposals are specific provisions around protection for employees going through the menopause and taking necessary steps to prevent sexual harassment. These provisions are already well established and Companies should take these issues seriously.
The political angle here is that Trade Unions are big funders of the Labour party and Union membership has fallen dramatically since its peak in the 1970s and this has affected Trade Union funds – hence so many Trade Unions have merged over recent years just to survive. Consequently it is likely that we will see some provision to encourage Union membership by making younger employees more aware of Trade Unions and driving recognition of Union in the workplace.
If you want advice regarding any of the issues raised, either call Adrian 07885 714771 or e-mail – [email protected]
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