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Employment Rights Bill roadmap gives employers ‘breathing space’

by Claire Churchard
02/07/2025
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The government has published a roadmap for implementing the Employment Rights Bill, which sets out a staggered timeline to allow businesses time to adapt.

April 2026 is the first milestone for changes including reforms to extend statutory sick pay (SSP), simplify the recognition process for trade unions, and day-one paternity leave and unpaid parental leave.

In October 2026, the government plans to ban fire and rehire practices, strengthen trade union access to the workplace, and extend employment tribunal time limits.

In 2027, gender pay gap action plans will be introduced, exploitative zero-hours contracts will be banned and there will be changes to unfair dismissal regulations.

The roadmap has been widely welcomed. although commentators have highlighted a number of issues that still need to be resolved.

Ben Willmott, head of public policy at the CIPD, said the roadmap gives greater clarity on the timelines for implementing the most significant workplace reforms in a generation. He said it was positive that the government has recognised the importance of further consultation on key areas still to be finalised, such as the new statutory probation period and new rights for zero hours workers.

However, he added: “While we’re pleased to see this gradual phasing, employers only have nine months to prepare for changes to the SSP regime, including removing the lower earnings limit and ending the three-day waiting period.

“Businesses are already struggling with rising employment costs following increases to the national living wage and employer national insurance contributions this year, and we’d hoped they’d be given more time to prepare for this significant change.”

Willmott added that it was positive to see the government commit to ensuring the enforcement system has the capability and capacity to cope with the range of new laws. “However, questions remain about the funding to deliver on this,” he said, adding: “It’s crucial that Acas receives additional resources to provide advice and guidance to help employers – particularly micro and small firms – comply with new legislation.

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“Adequate investment here will help employers avoid costly and time-consuming employment tribunal claims and reduce pressure on the tribunal system, where waiting times are already at record levels.”

He also highlighted “the need for a comprehensive labour market enforcement strategy” which includes the work of the new Fair Work Agency, as well as the Equality and Human Rights Commission and the Health and Safety Executive.

“Additional labour market inspectors and proactive strategies to prevent unfair treatment and improve HR practices will be particularly needed in sectors where there’s greatest risk of non-compliance,” Willmott explained.

“While the publication of the roadmap marks an important step forward, much of the detail around the bill’s implementation is still to be decided. [The CIPD] will be engaging closely with our members to ensure their expertise informs the design of the remaining measures, as well as the guidance employers need.”

Hannah Johnson, technical HR consultant at AdviserPlus, said: “The government’s decision to push back several significant workers’ rights reforms, including day-one protection against unfair dismissal and guaranteed flexible working, until 2027, will undoubtedly come as a significant relief to many UK businesses.

“For some, this extended timeline provides much-needed breathing space, particularly for those who have not yet started to prepare for what will be one of the most significant changes in employee rights for decades.”

Johnson said the revised timeline offers “an invaluable opportunity” for organisations to get ahead now, move past crisis mode and proactively lay the foundations for compliance.

She was clear that this delay should not be interpreted as a reason to postpone action.

“Several important reforms remain scheduled for 2026, including changes to sick pay, enhanced day-one parental leave rights, new whistleblowing protections, and a ban on fire-and-rehire practices by October 2026,” she said.

“These reforms will significantly reshape employee relations, placing new obligations on employers and managers to operate with greater fairness, transparency, and legal compliance. Now is the time for organisations to invest in training, policy updates, and technology that will help embed compliant, consistent, and compassionate practices before the new legislation takes effect.”

Johnson said that one of the most impactful upcoming changes is the reform of SSP. “While these changes may increase costs and short-term absences, they also offer a chance to create a healthier workplace culture. Rather than viewing the reform solely as a financial risk, organisations can use it to create a more supportive, data-informed approach to wellbeing and attendance.

“By empowering line managers with both legal understanding and human-centred skills, and by updating absence policies and financial plans accordingly, businesses can turn statutory change into meaningful progress in employee engagement and organisational resilience.”

AdviserPlus projections, based on the anticipated changes, suggest activity related to probation periods could more than double, potentially requiring 13 percent more employee relations advisory resources.

The Association of Professional Staffing Companies (APSCo) has welcomed the delay in the bill moving to Royal Assent, which it suggests is now likely to be this Autumn. The body said the delay is “a vital opportunity” to consider a robust impact assessment that shouldn’t be wasted.

“It’s clear that the government has encountered far greater resistance to the bill from the Lords and business departments than it had anticipated, so we are glad that there is now some additional breathing room,” said Tania Bowers, global public policy director at APSCo.

“There is an understandable and correct concern in the professional recruitment market that implementing such a significant reform of employment rights without the full understanding of the impact it will have on business growth and the UK’s economic strength simply cannot happen.

“We saw earlier this week that there was a renewed focus from Lord Chris Holmes to reintroduce an amendment to the bill which would see a licensing entity created for umbrella companies. It’s clear that there is still a lot to be debated on the topic and continued resistance, which in itself is telling,” she added.

Bowers said there are a number of areas in the bill proposals “where the details aren’t substantial enough or haven’t faced the level of scrutiny that will only be detrimental to the bill’s impact”.

She highlighted the example of incoming changes to fire and rehire clauses, which she said would mean that “it is unlawful for a company to make any contractual change, including a change of office address”.

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