The New Employment Rights Bill - Key updates

If you are feeling overwhelmed about the new employment rights bill, not sure how this is going to impact you and your business then grab a cuppa and let’s take you through all the changes and how they impact you as a small business owner. Don’t worry, things will be introduced gradually and some things not until 2026. We have already created a handy to-do list at the end which skips right to the point and lets you know the actions you will need to take in your business.

Let’s start with what is most likely to be on your radar:

Extended unfair dismissal rights

Proposed changes will allow employees to claim unfair dismissal from their very first day. The requirement for two year’s service will be a thing of the past and it will be replaced by a probationary period of 9 months, during which certain fair dismissal standards may not fully apply. Implementation will be expected by Autumn 2026 so you will have time to prepare.

Statutory sick pay

Statutory Sick Pay has been updated to ensure that employees will reviewed SSP on their first day of illness and the removal of the minimum earnings threshold will mean that more employees will be eligible.

Flexible working from day one

Flexible working can now be requested from day one. An employer can still refuse but there will need to be a reasonable justification for doing so.

Parental and Paternity Leave

These will also become a day one right, enabling employee’s to access them from their start date. Father’s and partner’s will also be able to take paternity leave alongside shared parental leave.

Bereavement leave

The Bill expands the general Parental Bereavement leave into general bereavement leave allowing employees time off in the even of a close personal loss. Entitlements include two weeks’ leave for the loss of a child and one week for other close relations. Multiple losses entitle employee to individual leave periods, giving employee’s flexibility at such a difficult time.

Duty to prevent sexual harassment

Employers will now be required to take all reasonable steps to prevent workplace sexual harassment including liability for third-party harassment. There will also be an introduction of a new category of protected disclosure related to sexual harassment, this means that the employee will be protected as a whistleblower. It emphasises creating a culture where employees feel safe reporting harassment without being concerned about how it will be dealt with.

Fair tip allocation

Employers must ensure that they allocate tips fairly between workers. You will need to ensure that you have a written policy and a code of practice. You will also need to ensure that you consult with Trade Unions and representatives before setting up policies. Policies will need to be reviewed every three years.

New safeguards for zero-hours contracts

There will be a minimum amount of guaranteed hours based on recent work. Future regulations will also specify notice periods for shift changes, and employers may need to compensate for last minute cancellations.

Gender Equality Audits

These are not yet mandatory but the Bill encourages employers to report on efforts around gender equity, including support for menopausal employees.

Changes to collective redundancy obligations

The Bill has updated obligations surrounding collective redundancies, expanding them beyond single locations. If your business is planning layoffs across multiple sites you will need to consult with employee representatives and notify the secretary of state.

Things to add to your ‘To do list’

• Review SSP policies for compliance to ensure they align with changes and clarify employee entitlements.

• Check flexible working policies to ensure that they meet new expectations and ensure that you provide clear, justified communication on refusal grounds. There needs to be a genuine business reason for refusing the request.

• Check parental leave polices to ensure that they clearly communicate changes and ensure that all employees are aware of the updates.

• There are a number of key takeaways from this change and things that you need to ensure are implemented. You will need to ensure that your policies are updated so that people know how to report it and ensure that they feel safe reporting any issues. An update in the policy is great but if an employee says that they did not feel safe reporting the incident then the policy change will not go far enough. A good idea is to ensure that you have workplace champions so that there is an allocated person who issues can be reported to. If you are a small business then you may have to get creative with this but if there is someone who is impartial then this may be a good idea. An employer can avoid any liability if but they can prove that they have taken ‘reasonable steps’ to prevent it occurring. Ensure that you have signs in place that tell customers and/or clients that harassment of any kind will not be tolerated. Make sure that there is an avenue in place that employee’s feel safe reporting any issues.

• Create a policy and code of practice on fair tip allocation. Ensure that it is reviewed every three years.

• Take a look at your workforce planning and shift management so that you can manage zero-hours contracts better or have less reliance on them altogether. Take a look at other contract options and see if these would work better.

• It would be a good idea to be pro-active in this area and develop plans that will enhance inclusivity. A good starting place for this would be to create a menopause policy or add provisions to existing policies such as your sickness absence policy.

All of this can seem overwhelming but remember we are here to help and support you with all of these things. Don’t forget that if you are already a client of ours then you can make use of your Breathe HR system to report on things like zero-hours contracts and to ensure that you have documented communications such as the sexual harassment policy.

If you want help updating your policies and ensuring you have everything in place in readiness for the changes ahead please contact us on: 02922804455 or hello@figtreehr.co.uk to discuss your needs further.