The UK government has published a Roadmap for the Employment Rights Bill, a far-reaching piece of legislation set to transform the HR landscape over the next two years. Introduced to strengthen employee protections and provide employers with long-term clarity, this Bill touches almost every area of workplace policy, from sick pay and harassment prevention to dismissal rights and trade union access.

In this comprehensive guide, we break down the key elements of the new law, explain what it means in practice for HR professionals, and outline how your organisation can prepare effectively.

What Is the Employment Rights Bill?

The Employment Rights Bill, announced in July 2025, introduces a phased package of employment reforms. These changes are designed to enhance workers’ rights while offering employers more transparency and consistency in how employment law is applied.

From new entitlements like day-one parental leave to structural reforms such as the creation of a Fair Work Agency, the legislation reflects the government’s commitment to levelling up employment protections across sectors. It also signals a shift in the role HR plays in compliance, culture and workforce planning.

Key Changes and Timeline: What’s Coming and When

From April 2026

1. Statutory Sick Pay Reform

Statutory Sick Pay (SSP) will be overhauled, removing the current lower-earnings threshold and abolishing the three-day waiting period. This means employees will be eligible for SSP from their first day of absence, regardless of their earnings level. HR teams should work with payroll and finance to prepare for increased short-term absence costs and update internal systems accordingly.

2. Day-One Rights for Leave

Employees will gain immediate entitlement to paternity leave and unpaid parental leave from their first day of employment. This represents a significant shift from current eligibility requirements and will require employers to update their leave policies, onboarding documentation, and manager training programmes.

3. Enhanced Whistleblower Protection

Whistleblowing provisions will be broadened to protect a wider range of disclosures and whistleblowers. Employers must ensure that reporting procedures are accessible, transparent, and that line managers are trained to respond appropriately. Mismanagement of whistleblower complaints can now lead to greater reputational and legal risk.

4. Launch of the Fair Work Agency

A new enforcement body, the Fair Work Agency, will be established to oversee compliance with SSP, holiday pay, and other core entitlements. The Agency will have investigative powers and issue penalties where non-compliance is identified. HR functions should ensure all records, calculations and leave policies are audit-ready.

5. Simplified Union Recognition & Digital Ballots

The process for trade union recognition will be streamlined, with a move towards online balloting. This is likely to increase the rate of successful unionisation efforts. Employers should proactively review their union relations strategy and prepare internal comms for employee consultation processes.

From October 2026

1. Ban on Fire-and-Rehire

New legislation will make it unlawful for employers to dismiss staff and rehire them on inferior terms. This widely criticised practice will be replaced by clearer, fairer consultation requirements. Employers must now exhaust all reasonable alternatives before making contractual changes. HR must review existing redundancy and restructuring policies to ensure compliance.

2. Sexual Harassment Duties

Employers will face a new duty to take “all reasonable steps” to prevent sexual harassment, including incidents involving third parties such as clients or customers. This means mandatory policy updates, more robust training, and potentially additional reporting channels. Failure to act proactively could lead to tribunal claims and reputational damage.

3. Extension of Employment Tribunal Deadlines

Employees will have six months (rather than three) to bring claims to tribunal in most cases. While this gives workers more time to act, it also extends the window of legal exposure for employers. HR should keep clear, contemporaneous records of decisions and employee interactions to support defensible outcomes.

4. Stronger Tipping Legislation

New rules will require employers to fairly allocate and transparently manage tips, service charges, and gratuities. This is particularly relevant for hospitality and retail sectors. Payroll, operations and HR must work together to ensure fair distribution and communication of tipping policies to staff.

5. Expanded Trade Union Rights

Trade union representatives will have greater access to workplaces and broader protections when engaging in union activity. This means employers will need to facilitate reasonable access and ensure anti-union bias is not present in disciplinary or grievance procedures.

6. Fair Pay Agreement Body (Adult Social Care)

From October 2026, the government will establish a sector-specific Fair Pay Agreement body for adult social care. This agency will negotiate minimum terms and conditions between unions and employers. While not applicable to all sectors, social care providers should prepare for new bargaining obligations and workforce planning implications.

In 2027

1. Day-One Right to Unfair Dismissal (Post-Probation)

Employees will gain the right to claim unfair dismissal from the first day of employment, following the completion of a probationary period. The definition and duration of probation periods will be clarified in forthcoming regulations. This change limits the previous two-year qualifying period, increasing the importance of well-structured probation reviews and thorough documentation.

2. Umbrella Company Regulation

The government will introduce new oversight for umbrella companies, ensuring transparency over pay and deductions for agency workers. Employers using these companies must review their supply chain and due diligence practices to avoid legal liability.

3. Guaranteed Hours for Zero- and Low-Hours Workers

Workers regularly working more than their contractual hours will gain the right to request a contract that reflects their actual working pattern. Employers using flexible labour models must track working patterns and be prepared to regularise hours in line with this new right.

4. Mandatory Gender Pay and Menopause Action Plans

Employers will be required to publish action plans alongside gender pay gap reports and develop menopause support strategies. From 2026, these requirements will be voluntary, becoming mandatory in 2027. HR should begin gathering relevant data and consulting with employees to shape effective, inclusive policies.

5. Expanded Leave and Flexible Working

Further reforms will include greater access to flexible working, improved bereavement rights, and stronger protections for pregnant and returning employees. These anticipated changes will require policy updates, system adaptability, and clear communication, once confirmed by secondary legislation.

HR Priorities: What Employers Need to Do Now

Contracts and Policies

Review all employment contracts to reflect new rights and entitlements. Particular attention should be paid to sick pay terms, flexible working clauses, and termination provisions.

HR Systems and Payroll

SSP, leave calculations, and working pattern records must be updated to support new entitlements and compliance tracking.

Manager Training and Internal Communication

Line managers need clear guidance and training on the practical application of new rights, especially around harassment prevention, whistleblowing, and dismissal.

Employee Engagement and Consultation

Prepare for deeper engagement with staff and trade unions. Ensure employee representatives are briefed, and consultation procedures are up to date and legally compliant.

Legal Compliance and Record-Keeping

Ensure policies and procedures are defensible in light of expanded tribunal windows and scrutiny from the Fair Work Agency.

Dispelling Misinformation

Media reports have inaccurately suggested that the Bill mandates diversity quotas or bans certain types of workplace conversation. Government sources have firmly denied these claims, clarifying that:

• Employers are not required to appoint diversity officers.
• There is no legal prohibition on workplace conversation, provided it does not amount to harassment or discrimination.
• NDAs are not banned outright but are being reformed to protect whistleblowers and victims of misconduct.

HR professionals should rely on official guidance and seek legal advice where needed, rather than responding to unverified reports.

NDA Reforms: New Limits on Confidentiality

Under the new rules, NDAs will be unenforceable where they are used to prevent employees or witnesses from reporting or discussing harassment, discrimination, or abuse. This means:

• Settlement agreements must include clear carve-outs allowing individuals to speak to police, regulators, or legal advisors.
• Existing grievance, disciplinary and whistleblowing procedures must be reviewed.
• Employers should adopt a culture of openness, with stronger protections for those who raise concerns.

Strategic Recommendations for HR Leaders

• Audit your organisation: Identify current gaps in compliance across key risk areas—including sick pay eligibility (Statutory Sick Pay reforms), parental and paternity leave (day-one entitlements), harassment prevention, whistleblowing channels, and dismissal procedures. Ensure that documentation and practices are consistent with upcoming statutory standards.

• Assign responsibility: Allocate ownership of legal and procedural updates to specific HR or legal team members. For example, someone should lead updates to employment contracts reflecting new termination rights (e.g. post-probation unfair dismissal), while another oversees training aligned with harassment prevention duties and whistleblower protections.

• Prepare early: Many major changes take effect from April 2026 and October 2026, including Fair Work Agency enforcement, extended tribunal deadlines, and expanded trade union rights. Internal systems – especially for absence tracking, onboarding, and grievance logging – may need redesign. Start change management planning now.

• Use external support: Engage employment lawyers and L&D partners to ensure your organisation’s approach aligns with official guidance and legal interpretation. This is particularly critical for sectors impacted by specialised reforms (e.g. tipping legislation in hospitality, or Fair Pay Agreements in adult social care).

• Communicate proactively: Help senior leaders and employees understand what is changing, when, and why. Use internal channels to build confidence in the HR function’s readiness and provide reassurance around new rights, protections, and fair processes especially around sensitive areas like whistleblowing, dismissal, and flexible working.

Get Ahead of the Changes

The Employment Rights Bill will reshape HR responsibilities over the next 18 to 24 months. With implementation staggered through 2026 and 2027, organisations have time to prepare – but that time should be used wisely.

By understanding the roadmap, updating internal processes, and engaging in proactive communication, HR leaders can turn compliance into a catalyst for better working practices and stronger employee engagement.

Start planning today and set your team up for success in the future of work.

How Avado Can Help

Avado offers HR and L&D professionals the training and resources needed to navigate this legislative shift confidently. Our CIPD courses are designed to help you:

• Understand employment law in depth with CIPD-accredited courses.
• Train managers on handling flexible working, harassment prevention and employee relations.
• Access toolkits, webinars and checklists aligned with each phase of the Bill.

Explore our CIPD HR courses to ensure your team is equipped for 2026 and beyond.