The act introduces wide-ranging reforms, reshaping workplace protections, unfair dismissal rules, and employee rights across UK businesses, says Mark
GIVEN that the world of flooring is very much a people-based industry – machines may make carpet but people are needed to fit them, employers and employees alike will likely have shown keen interest in the government’s moves to reform employment law via the Employment Rights Bill.
That bill is now an act having gained royal assent last December (2025).
But as the bill was progressing through parliament the government, last July (2025), published a policy paper, Implementing the Employment Rights Bill: roadmap, setting out how and when new workplace rights and protections will take effect.
Certain provisions are expected to come into force in 2026; other changes will be introduced in stages, with the final measures rolling out by 2027.
The roadmap provides employers with an opportunity to plan ahead, update policies, and review workplace practices before the changes become law. The act builds on long-standing discussions about updating UK employment law to reflect modern working practices.
Its changes are wide-ranging, from changes to unfair dismissal protection to new measures tackling workplace harassment and zero-hour contracts. Understanding what’s changing, when it will apply and how it might affect employment practices will be essential in the months and years ahead.
The act introduces numerous reforms, but four stand out as particularly significant owing to the scale of their impact and the work that may be needed to prepare for them.
Change to protection against unfair dismissal
Currently, most employees need two years of continuous service to be protected from unfair dismissal. Government is no longer pursuing day-one protection against unfair dismissal.
Instead, following agreement with business groups and trade unions, the current two-year qualifying period for ordinary unfair dismissal will be reduced to six months with effect from 1 January 2027.
This means new hires commencing employment from July 2026 onwards will have a six-month qualifying period. As part of the compromise, the government tabled amendments to remove the statutory cap on compensatory awards for unfair dismissal. This will mean claimants will be able to claim potentially unlimited compensation for ordinary unfair dismissal claims.
Employers can prepare for these changes by reviewing recruitment and induction processes to ensure any job withdrawals or early dismissals are well documented with a clear and defensible rationale.
For existing staff, updating probation procedures and training managers on fair and consistent probation reviews will help align with the new rules.
Limitations on ‘fire and rehire’ practices
The act introduces stricter limits on the use of so-called ‘fire and rehire’ practices. The act provides it will be automatically unfair to dismiss an employee solely because they refuse to agree to changes to their contract terms, or to dismiss someone in order to re-engage them on new terms for the same or similar work.
There is a defence if the employer can show that the changes were genuinely needed to prevent or significantly reduce serious financial difficulties in the near future and that no reasonable alternatives were available.
However, the test will be applied narrowly as tribunals are expected to look for clear and credible evidence, and general aims such as cost reduction or efficiency improvements are unlikely to be sufficient.
Where changes are genuinely needed, securing agreement will generally be safer for employers than relying on dismissal and reengagement. Employers may want to review whether existing flexibility clauses or collective agreements already provide a practical way to vary terms by agreement.
Checking contracts now can help identify whether they offer sufficient scope for needed changes or if updates would be beneficial.
Though these provisions are expected to take effect from 2026, they signal a clear shift in approach away from the current legal position.
Zero hour and casual worker reforms
The act introduces greater protections for zero-hours and casual workers through three core statutory rights:
- a right to be offered guaranteed hours once certain thresholds are met;
- a right to reasonable notice of shifts; and
- a right to compensation where shifts are cancelled, changed, or curtailed at short notice.
The act aims to align contractual hours more closely with actual hours worked. Once a worker regularly works above a minimum threshold over a defined reference period (expected to be around 12 weeks), they must be offered guaranteed hours reflecting that pattern. This offer must fairly match the pattern worked and cannot be for a fixed term. Any less favourable terms must be justified.
Workers will also have the right to reasonable notice of shifts. If shifts are cancelled or changed at short notice, compensation will be payable. Regulations will set out what counts as ‘reasonable’ notice and ‘short notice’, but advance planning and clear communication will become increasingly important.
These rights will apply to agency workers as well, with responsibilities divided between the end hirer and the agency.
Employers will need to inform workers of their rights within two weeks of starting work, or within two weeks of it becoming reasonable to believe that they might qualify. This obligation continues throughout employment to ensure ongoing access to information about these rights. There will also be an opt-out mechanism for employers and unions to agree alternative arrangements via a collective agreement, provided strict conditions are met.
Although much of the detail will follow in future regulations, these changes mark a significant shift for businesses that rely on flexible labour. Employers need to develop compliant internal processes.
Stronger protections against harassment and ban of NDAs
The act strengthens employers’ obligation to tackle workplace harassment by expanding the current duty to require them to take all reasonable steps to prevent sexual harassment of staff. Although this new duty may not give rise to standalone tribunal claims, it may influence the outcome of harassment claims.
Additionally, a separate provision will introduce protection for workers who experience harassment by third parties, such as clients or customers, if the employer has not taken all reasonable steps to prevent it. This applies to any form of harassment, not just sexual harassment.
Further guidance will clarify what amounts to ‘all reasonable steps’, but employers can expect to see expectations around clear policies, risk assessments and effective reporting and response procedures.
Reviewing current policies and providing regular training for managers and staff will be key to ensuring everyone understands how to raise concerns and how they will be addressed.
The act will also ban non-disclosure agreements (NDAs) that attempt to prevent workers from speaking out about workplace harassment or discrimination – whether relating to an employee’s own experience or that of another employee. Whistleblowing protections will also be extended to cover sexual harassment complaints, giving workers stronger safeguards.
Employers should review how NDAs are used in settlement agreements and update whistleblowing and grievance procedures to reflect these changes.
Other measures
In addition to the headline reforms, the act includes a range of other significant proposals that employers should have on their radar: - Trade unions and industrial action: Protections for workers involved in lawful trade union activity or industrial action will be strengthened, including new safeguards against dismissal and clearer rules on picketing and balloting procedures.
- Family rights: Right to take unpaid parental leave and paternity leave will become a day one right and there will be a new right to bereavement leave.
- Flexible working: Employees will gain greater rights to request flexible working arrangements from day one of employment. Employers will need to handle requests promptly, consult with employees and provide sound business reasons for refusal.
- Collective redundancy: The act tightens obligations on employers undertaking large-scale redundancies, including more detailed information and earlier consultation requirements.
- Statutory sick pay (SSP) and holidays: SSP will become payable from the first day of sickness; the lower earnings limit will be removed; and new rules will require employers to keep clearer records of working hours and holiday accrual to ensure compliance with working time regulations.
Preparing for change
While some measures may not come into force until late 2026, or even later, taking steps now to understand the changes and plan ahead should make the transition smoother when the final provisions take effect.
Reviewing contracts, internal practices and policies will help identify where updates are likely to be needed. Additionally, keeping detailed and accurate records, particularly around working hours, contract changes and disciplinary processes, will be more important than ever.
Furthermore, investing in staff training can help ensure they understand the new requirements and apply them consistently in practice.
But in practical terms, the act could affect recruitment and staff turnover; with the unfair dismissal qualifying period being shorter, employers will have to invest in better onboarding, probation policies, and documentation to reduce early on employment disputes.
As for payroll and HR matters, the changes to SSP, enhanced leave rights, and flexible working processes will require updates to payroll, rotas, absence tracking, and employee handbooks.
And in terms of irregular hours workers, new rights around shift cancellation and guaranteed hours may well affect how contractors structure their zero-hours or casual arrangements.
Finally, there are the compliance risks – tribunal claims, penalties, enforcement action – that will likely rise. Simply put, employers would be best advised keeping an eye on this piece of legislation.
Mark Stevens is a legal director at VWV LLP