The new Employment Rights Bill (ERB) is arguably the biggest overhaul of UK employment law we’ve seen in a decade. For business leaders, HR professionals and people managers, the changes ahead carry real implications for contracts, workplace culture and risk management.

A major shift in employer responsibilities

At its core, the Employment Rights Bill is about rebalancing rights – giving employees stronger protections and placing greater accountability on employers. For smaller organisations without a large internal HR team, especially, the message is clear: this isn’t something you can safely defer until “later”.

Day-one rights for staff: what’s changing

One of the headline reforms is the move towards day-one rights for unfair dismissal. Under current UK law, employees must have two years’ service before they can bring a claim for unfair dismissal. The Bill proposes removing or shortening that qualifying period.

For employers this means: probationary periods now carry significantly more risk. Weak documentation, unclear performance management or informal “let’s end it quietly” approaches will no longer protect you.

Key actions:

• Ensure your probation policy is up to date, with measurable objectives and documented reviews.

• Maintain clear records of performance conversations and support offered.

• Make sure exit decisions are defensible and backed by documented process.

Reforming zero-hours contracts, agency work and flexibility

The Bill also takes aim at flexible staffing models. For instance, rights for those on zero-hours contracts, low-hours or agency work are set to be strengthened. Workers may have the right to request predictable working patterns and may be compensated for last-minute shift cancellations. For sectors like hospitality, retail, logistics and care that rely on “on-demand labour”, this means rethinking scheduling, rostering and contract terms.

In practice:

• Review your use of zero-hours and agency contracts: are they justified, or simply convenient?

• Consider introducing more predictable working patterns or clearer options for part-time/flexible work.

• Update your workforce-planning and budget forecasts to reflect increased employee rights.

Sick pay, parental leave and other enhanced entitlements

The Bill doesn’t stop at dismissal rights. It also enhances statutory entitlements. For example:

• Statutory Sick Pay (SSP) may become payable from day one of absence, replacing the current waiting period.

• Parental leave rights are set to apply from day one of employment, rather than after 12 months’ service.

These changes reflect the evolving expectations of today’s workforce, but they also bring additional cost and administrator burden, particularly for smaller firms. Action checklist:

• Update your handbook and contracts to reflect enhanced entitlements.

• Consult your payroll provider or outsourcing partner about impact on SSP budgeting.

• Revise your leave-policies to ensure you can manage earlier eligibility for parental leave.

Strengthening culture: harassment, NDAs and “fire & rehire”

The Employment Rights Bill also advances workplace standards. It reinforces the employer duty to prevent sexual harassment, clamps down on the misuse of non-disclosure agreements (NDAs) and restricts the controversial “fire and rehire” practice. This is a signal: businesses will be judged not just on legal compliance, but on the ethical, transparent way they treat their people.
What to do:

• Review your harassment-prevention policy, awareness training and incident-reporting procedures.

• Audit your use of NDAs – ensure they are not being used to silence victims of harassment or discrimination.

• If you’ve used or considered “fire and rehire”, note that the tolerance for inferior re-engagement terms is reducing – seek legal or HR advice before proceeding.

Enforcement: compliance is more visible than ever

Perhaps the most strategic shift is in enforcement. The Bill proposes establishing a central enforcement body – the Fair Work Agency – to oversee holiday pay, minimum wage, statutory rights and worker protections. For employers this means: you cannot rely on a “handle issues if they arise” approach. Regulatory scrutiny is increasing and proactive compliance will increasingly be viewed as the norm.

Practical steps:

• Conduct a full HR audit: contracts, policies, pay arrangements, shift-practices, performance-management.

• Train line-managers on documentation, fairness, consistency and avoiding informal “quick fix” decisions.

• Establish clear metrics and reporting: HR risk is now a board-level agenda matter for many organisations.

What should business owners do now?

Although many provisions of the Bill are not yet in force, the direction of travel is clear. Early preparation is key. Here’s a roadmap:

• Review employment contracts: Ensure they reflect the new rights, eligibility, working patterns and termination processes.

• Update your handbook and HR policies: Incorporate day-one rights, predictable working requests, absence and leave enhancements and fair dismissal processes.

• Strengthen your performance-management process: Document probation reviews, support plans and exit decisions.

• Audit staffing models: Particularly if you use zero-hours, flexible or agency labour – ensure terms, rostering and budgets reflect new rights.

• Communicate with employees: Being open, transparent and consistent strengthens your employer brand and prepares your culture for change.

• Invest in line-manager capability: As regulatory scrutiny rises, so does the expectation of fair, competent leadership. Equip your managers accordingly.

Building a stronger employer brand

The Employment Rights Bill isn’t just a set of legal changes – it signals a shift from minimal compliance to proactive fairness, transparency and accountability. For companies already embedded in best-practice people-management, the transition will feel more evolutionary than disruptive. For those relying on ambiguity or informal practices, it’s a definite wake-up call. Ultimately, businesses that prepare now will mitigate risk and create stronger employer brands – a competitive advantage in recruiting and retaining talent.

If you’d like help translating these changes into your HR strategy, reviewing your contracts, policies or performance frameworks, get in touch with the Haus of HR team today.