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The Employment Rights Bill will bring in wide-ranging reforms of UK workplace legislation.
While not yet law, it is already clear that the proposals will place more legal responsibility on employers, tighten procedural requirements and increase the risk of enforcement action.
With implementation expected from 2026, employers should use the time now to assess where their current approach may fall short.
Start with contracts and internal policies
The first step for most organisations will be a review of contracts and internal frameworks. Existing HR policies may no longer be fit for purpose once the Bill becomes law. New employee rights are expected to apply from the start of employment, including protection against unfair dismissal and the ability to request flexible working. Relying on informal or early-stage dismissals will no longer be low-risk. Managers will need to understand how to manage the probation period in light of these new day-one rights, as well as how to apply a correct disciplinary procedure from the beginning of the employment relationship.
Contractual terms should be reviewed, especially where working patterns are irregular. Staff engaged on part time hours, casual shifts or variable rotas may acquire new rights to regularity and predictability. To remain compliant, employers may need to rethink scheduling practices or consider options like job share to meet staffing needs without breaching legal expectations.
Managing change and restructuring
Employers planning workforce changes must consider how the new legal landscape may affect those decisions. The Bill is likely to restrict the repeated use of short-term contracts and impose limits on unilateral contract changes. Where restructuring leads to headcount reduction, the handling of redundancy pay, voluntary redundancy offers and consultation processes will come under closer scrutiny. Failure to follow correct procedures could result in legal claims and tribunal costs.
Although the Bill does not directly amend TUPE, the broader emphasis on fair terms and worker protections may affect how employers approach staff transfers. Changes made to employee terms following a transfer—particularly if linked to a redundancy process—could attract more legal risk once the new framework is in place.
Getting ahead on equality and enforcement
Employers with over 250 staff should prepare for new transparency obligations, including the need to publish equality action plans. These are expected to go beyond gender pay and focus on inclusion more broadly. Organisations should start collecting relevant data and look at practical steps—such as providing reasonable adjustment examples in training or internal resources—that can support compliance and improve workplace accessibility.
Trade union rights are also set to expand. Employers should be prepared for greater union involvement and make sure internal processes are clear and legally sound. A strong grievance policy, consistently applied, will help reduce the risk of escalation. In cases where employment disputes cannot be resolved internally, a settlement agreement may provide a structured way to end the relationship while minimising reputational and financial exposure.
Reviewing existing restrictive covenants is also worthwhile, especially in contracts for senior staff. As employee protections grow and movement between employers increases, these clauses will play a more important role in protecting client relationships and confidential business information.
A compliance task employers can’t ignore
The changes set out in the Employment Rights Bill are wide-ranging and will require action across the full employment law remit, including contracts, policies and line manager training. Employers that begin planning now will be better equipped to avoid compliance issues later and can make informed decisions before the new law is enforced.
Contact DavidsonMorris for specialist guidance for your organisation.