The Employment Rights Bill has had a lot of mentions in the articles we’ve been posting recently! But that’s not surprising given that it marks a huge shake up of the employment law landscape. When the Bill finally receives Royal Assent (expected to be in November this year) it’ll become an Act. And from then on, businesses must brace themselves for an onslaught of new regulations, codes of practice and associated guidance.
The employment law changes will take effect during 2026 and 2027. There’s a lot to unpick and there are still many questions to be answered about the detail. But that said, you can take steps now to be as prepared as possible for when those details are finally confirmed. Here are some of the major changes expected to come into force in 2026.
April 2026
Statutory sick pay eligibility changes
The Employment Rights Bill aims to ensure all workers become eligible for statutory sick pay (SSP). It’s doing this by removing the three-day waiting period. So all employees will be able to get SSP from their first full day of sickness absence, not from the fourth day as is currently the case. The Bill is also removing the requirement to earn at least the lower earnings limit. If someone is earning below the SSP rate, they’ll get 80% of their average weekly earnings.
You’ll need to update employment contracts, employee handbooks and applicable policies accordingly. But it doesn’t end there. If there are no longer any waiting days for pay, it’s likely to lead to an increase in the number of people on short term sickness absence. It’s never been more important to be proactive in the way you are managing absence.
Doubling of collective redundancy protective award
If you don’t meet consultation requirements in a collective redundancy situation, your employees could take you to an employment tribunal. And this could lead to your business having to pay a ‘protective award’. Currently it could be up to 90 days’ pay for every employee affected. The Employment Rights Bill is set to double this to 180 days.
Paternity leave and ordinary parental leave qualifying period and restriction removal
Qualifying periods are going. Statutory paternity leave and ordinary parental leave will become day-one rights. And the current restriction stopping a parent from using paternity leave if they have already taken shared parental leave is going too.
So again, you need to make sure that related policies and procedures reflect these changes. That includes making sure that your shared parental leave policy reflects the fact that employees can take paternity leave and pay after shared parental leave and pay. (If you are struggling to follow these changes, this article explains a bit more about the current situation with different types of parental leave.)
Sexual harassment added to whistleblowing legislation
The list of types of disclosures that qualify to be protected under whistleblowing legislation is going to explicitly include sexual harassment. This is another step in the recent expansion of legislation designed to crack down on sexual harassment in the workplace.
But it’s vital to be clear on the importance of being proactive when it comes to dealing with sexual harassment. It’s not enough to simply react to reports once an incident has taken place – as was highlighted in this case which resulted in a legally binding agreement between the Equality and Human Rights Commission and Lidl GB.
Which leads us onto the changes towards the end of the year…
October 2026
Employer liability for third-party harassment
Staying on the subject of harassment, the Employment Rights Bill will also make employers liable for third-party harassment if they haven’t taken all reasonable steps to prevent it. To be clear, this doesn’t just apply to sexual harassment. It applies to all forms of harassment. This could have massive implications for your business – you’ll find more details about this particular provision here.
Extension of time limits for bringing employment tribunal claims
At the moment, the time limit for most claims is three months. That’s going to increase to six months. That potentially raises the risk of an increased proportion of employees making claims. It’s never been more important for managers to clearly understand the importance of recognising and carefully documenting any issues that ultimately could end up going to tribunal.
Limits to the practice of dismissal and re-engagement (“firing and rehiring”)
Legislation resulting from the Employment Rights Bill will mean an automatically unfair dismissal has taken place if the reason for dismissal was that the employee refused to variations of restricted terms in their contract. Or if it was to enable the employer to employ another person to do more or less the same work. Or to rehire the dismissed employee to essentially do the same role but on a varied contract of employment.
The only and very limited exception will be if the employer can genuinely demonstrate they are in financial difficulties and have no option other than to change contractual terms.
Does your business have sufficient HR expertise and resource to deal with all these changes?
The Employment Rights Bill is going to create significant demands on employers. They need to ensure they have enough HR expertise in their business to handle all the work that it’s going to create. Firstly, drafting and updating policies and all associated documentation. Then implementing it all, providing the necessary training and guidance to ensure managers clearly understand the implications of all the changes.
If you are concerned about exposing your business to the rising risk levels associated with the Employment Rights Bill, contact us today to discuss how we can help you.
