Employment rights reform – what the government’s roadmap means for employers

The Government has announced a new plan to strengthen worker rights and simplify employment laws – with changes set to affect around half of the UK workforce. The roadmap is the Government’s phased plan for delivering the Employment Rights Bill, which was introduced to Parliament in October 2024.

This programme of employment rights reform is the most radical in a generation, pitched as a way to boost protections for individuals while giving employers time to plan ahead and implement changes in a manageable way.

What’s coming and when?

The roadmap sets out planned consultations and phased reforms over the next 3 years. Crucially, the roadmap pushes back some of the most significant reforms. Key changes such as ‘day one’ protection from unfair dismissal and new regulation of ‘exploitative’ zero hours contracts are now scheduled for 2027 – a year later than previously anticipated.

Measures expected to take effect shortly after Royal Assent

Two immediate changes are expected once the Bill becomes law:

• Repeal of recent industrial action laws – The Strikes (Minimum Service Levels) Act 2023 and key provisions of the Trade Union Act 2016 will be removed, aiming to foster more collaborative union relationships.
• Stronger protection for striking workers – Employees who take part in lawful industrial action will be protected from dismissal.

Measures expected to take effect from April 2026

A broader package of reforms will begin from April 2026, with direct implications for your internal policies and procedures:

• Extended protective awards in collective redundancies – The maximum award will double, increasing the cost of non-compliance in large-scale redundancy situations.
• Day one rights to paternity and unpaid parental leave – New starters will be eligible from their first day of employment.
• Improved whistleblowing protections – Aimed at encouraging early reporting and protecting those who raise concerns.
• Fair Work Agency launched – A new body to enforce workers’ rights and support fairer practices.
• Sick pay reform – Removal of the lower earnings limit and the current waiting period for statutory sick pay eligibility.
• Modernised union processes – Including electronic and workplace balloting, and simplified union recognition procedures.

Whilst some of these proposed changes are welcomed by business leaders, others have caused disquiet, not least the increased financial burden presented by sick pay reform and reduced thresholds for trade union recognition. Taken together, these changes represent a significant phase of employment rights reform that businesses will need to plan for carefully.

Measures expected to take effect from October 2026

Later in the year, new employer duties and behavioural standards come into force:

• Legal duty to prevent sexual harassment – Employers must take all reasonable steps to prevent harassment in the workplace.
• Third-party harassment protections – Liability will extend to cases involving customers, clients or service users.
• Ban on abusive ‘fire and rehire’ practices – Employers will no longer be able to threaten dismissal as a way of imposing less favourable contract terms.
• Stronger tipping legislation – Employers will need to consult workers on fair allocation.
• New union rights – Including stronger protections for reps and extended access to workplaces.

Few employers can reasonably take issue with the enhanced suite of measures designed to bolster EDI initiatives, but all legislative changes bring onerous responsibilities. Businesses will need to dust off their equal opportunities policies and ensure that staff receive training to mitigate risk.

The prohibition on ‘fire and rehire’ will encourage meaningful consultation between employers and employees, but the proposals make restructuring an option of last resort, with redundancy likely to represent a lower risk option for employers. This is an unsatisfactory outcome for both sides of the employment relationship.

Measures expect to take effect from 2027

Some of the most significant reforms – including several previously expected earlier – will now take effect in 2027:

• Day one protection from unfair dismissal – Removing the two-year qualifying period for bringing a claim.
• Regulation of zero hours contracts – Measures to prevent exploitation and increase stability for workers.
• Wider access to flexible working – Supporting better work-life balance for more employees.
• Stronger protections for pregnant employees and new mothers – Covering pregnancy, leave and return-to-work transitions.
• Bereavement leave – Introducing a statutory entitlement to time off after a bereavement.
• Mandatory gender pay gap and menopause action plans – Voluntary from 2026 but required from 2027.
• Further guidance on preventing harassment – Including clarification on what counts as taking ‘reasonable steps’.
• New framework for industrial relations – Focused on collaboration, access and dispute resolution.

Proposed abolition of the current two year qualifying period for unfair dismissal

Under the Government’s proposals, employees will benefit from the right not to be unfairly dismissed from day one. This is subject to the caveat that employers will be able to fairly terminate employees in an initial period of employment (a probationary period) provided the reason relates to the employee (for example, conduct and capability) and the employer adheres to a ‘light-touch’ dismissal process. The initial period is likely to be nine months, but this is currently the subject of consultation.

Whilst the Government’s stated aim is to discourage employees from embarking on more complex discrimination and whistleblowing litigation which does not require a qualifying period of employment, we are broadly in agreement with business leaders that anything other than a light-touch dismissal process in the initial employment period will degrade confidence to hire. This could lead to stagnation and deter growth.

How we help

At Thomas Mansfield Solicitors, our specialist employment lawyers work closely with employers to prepare for the Employment Rights Reform and the new Bill. We can review contracts and policies, update your procedures and deliver tailored training for managers and HR teams.

With ongoing advice and support, we’ll help you implement the changes smoothly, reduce risk – and keep your business moving forward.

Related articles can be found on Gov.uk and The Institute of Employment Rights.