On 1 July 2025 the government finally published a roadmap for the delivery of the Employment Rights Bill. This gives some much-needed clarity on timing and the scope of reforms. Here are the key developments and expected dates.

Day One Right Not to Be Unfairly Dismissed

Expected: Autumn 2027

• Employees will gain the right not to be unfairly dismissed from day one (currently applies after 2 years’ service).
• Consultation is expected on a 'lighter touch' dismissal process during an initial period of employment.

HR Actions

• Review retirement strategies ready for the change.
• Review probation periods and processes for effective performance management.
• Consider aligning probation periods with initial period of employment.

Extension of Time Limits for Tribunal Claims

Expected: October 2026

• Time limit to be extended from 3 months to 6 months.

HR Actions

• Re-diarise deadlines for bringing claims.
• Consider any budget increases to cover increased number of potential claims.

Statutory Sick Pay

Expected: April 2026

• SSP will become payable from day one of absence (currently kicks in after 3 days’ absence).

HR Actions

• Update absence policies.
• Train managers on absence management.
• Ensure payroll systems amended.
• Ensure budgeting managers aware.

Fire and Rehire

Expected: October 2026 (after code of practice consultation in Autumn 2025)

• Use of “fire and rehire” will be significantly restricted.
• Automatically unfair dismissal where imposed to change certain core terms such as pay, hours, pension, shift times, time off rights, and other defined changes.
• Broader ban includes “fire and replace” (e.g. replacing staff with contractors or agency workers).
• Some exceptions remain for employers facing significant financial difficulties.

HR Actions

• Review provisions in contracts of employment that may need removal in future.
• Review variation clauses.

Collective Redundancy Consultation

Expected: Threshold Test Changes: April 2027 (consultations starting 2025/2026)

Expected: Protective Award: April 2026

• The test for 'establishment' will change to cover proposed dismissals across all sites, not just one location.
• Maximum protective award increased to 180 days’ pay for failure to consult.

HR Actions

• Review redundancy policies.
• Update leaders on change management strategies.

Zero Hours / Low Hour Contracts

Expected: 2027

• New rules expected (subject to consultation).
• Includes guaranteed hours, reasonable notice for shift changes, and payment for cancelled shifts.

HR Actions

• Audit current arrangements for zero/low-hour workers.
• Stay updated on regulatory changes.

Flexible Working

Expected: 2027 (consultation winter 2025/early 2026)

• Employers must provide written reasons for refusing a request and explain why refusal is reasonable.

HR Actions

• Amend flexible working policies.
• Train managers on reasonable grounds for refusal.

Sexual Harassment, Harassment and Whistleblowing

Expected: October 2026 (harassment) and April 2026 (whistleblowing)

• Employers must take all reasonable steps to prevent sexual harassment.
• Employers liable for third party harassment.
• Disclosure of sexual harassment counts as whistleblowing.

HR Actions

• Review policies to cover these changes, including third party harassment.

NDAs

Expected: Date to be confirmed

• Any clause preventing disclosure of harassment or discrimination will be void (other than third-party harassment).

HR Actions

• Review NDA agreements.
• Provide harassment and discrimination training for managers.

Trade Union Reforms

Expected: April 2026 – October 2026 (consultations in Autumn 2025)

• Consultations on recognition processes, access rights, detriment protections, and duty to inform workers of their rights.
• Repeal of Strikes (Minimum Service Levels) Act and parts of Trade Union Act.
• Electronic balloting expected in April 2026.

HR Actions

• Update policies and contracts of employment.
• Train managers on changes.
• Adapt digital communication policies to accommodate union use.

Other Changes

• Stronger protection from dismissal for maternity returners. Expected 2027.
• Day 1 right to unpaid bereavement leave. Expected 2027.
• Day 1 right to parental and paternity leave. Expected April 2026.
• Stronger rules on tips, requiring consultation. Expected October 2026.
• Gender Pay Gap Action Plans (250+ employees). Voluntary April 2026, mandatory 2027.
• Ethnicity and Disability Pay Gap reporting expected under separate bill.
• Menopause Action Plans for 250+ employers. Voluntary April 2026, mandatory 2027.
• Regulation of umbrella companies. Expected 2027.
• Fair Work Agency established. Expected 2026.

Final Thoughts

The roadmap shows sweeping reform spread over the next two years, with changes rolling out between April 2026 and 2027 and beyond. Employers should start preparing now, particularly in relation to sick pay, harassment prevention, redundancy consultation, and fire and rehire practices.

If you would like tailored advice on how these reforms could affect your organisation, please get in touch at victoria.hall@impactlawyers.co.uk or contact@impactlawyers.co.uk.

 

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