Effective Strategies to Prepare Your Business for the Employment Rights Bill Changes

The Employment Rights Bill has been in discussion for some time. The time for change is soon upon us and businesses need to ensure they are up to speed to avoid potential costly breaches.

In this guide, I will point you to the key actions I would look to take, key points of references that maybe beneficial and critical dates you must be aware of.

Understand the Key Changes in the Employment Rights Bill

There are many changes that have been discussed and it is easy to lose sight of all the key points you need to know. So below is a summary view of changes that have already been made and those being prepared.

From 6th April 2024

• Right to request flexible work arrangements from Day 1

• Two statutory flexible working requests can be made in any 12‑month period

• Employers must now consider requests properly, consult, and give a two‑month response

• Introduction of Carer’s Leave – one unpaid week per year for caring responsibilities

  
  

From 6 April 2025

• Increase to redundancy and severance pay awards came into effect

• Implementation of neonatal care leave

  
  

From 6 April 2026

• Day 1 rights introduced for Paternity Leave, which no longer has to be taken directly after childbirth

• Day 1 unpaid Parental Leave introduced

• Day 1 Shared Parental Leave introduced

• Day 1 rights introduced for SSP & removal of lower earnings limit

• Day 1 rights for unfair dismissal (subject to probation period)

• Removal of Zero Hour contracts

• Sexual harassment disclosures will be added to qualifying whistleblowing disclosures

  
  

Later Date still TBC (subject to legislation changes)

• Ban on NDAs or confidentiality clauses that prevent harassment or discrimination disclosures

• Stronger duty to prevent sexual harassment and third-party harassment

• Expanding rights around representation in grievance/disciplinary/dismissal proceedings (including certified professionals)

• Tighter regulations on Fire & Rehire

• Bereavement leave (for dependents, including miscarriage)

• Enhanced pay transparency and reporting requirements

• Expanded collective redundancy consultation thresholds

Knowing these changes helps you identify which areas of your business policies and practices need review.

Contingency Planning

Employers should factor potential operational costs from these upcoming employment rights changes to avoid unexpected cashflow variations. A significant financial impact may arise from increased leave entitlements (paternity, maternity, parental, shared parental, carers’ leave), Day‑1 SSP obligations, and any anticipated redundancy or severance costs. As a practical guideline, many organisations may consider setting aside 2–5% of total payroll to reflect these anticipated costs.

In addition, careful contingency planning is essential. Organisations should review and tighten Standard Operating Procedures to allow for intermittent role cover, ensuring business continuity if employees take leave unexpectedly. This approach helps manage both statutory pay obligations and the operational impact of temporary absences

Conduct a Comprehensive Policy Review

Start by reviewing your current employment policies and contracts. Look for clauses that may no longer comply with the new legislation, or identify those that may likely change.

• Dismissal procedures:

• Redundancy policies:

• Leave entitlements:

• Grievance and disciplinary processes:

  
  

Involve your HR team or legal advisors to ensure your policies are clear, fair, and legally compliant.

Train Your Management Team

Managers play a vital role in implementing employment law changes. Provide targeted training to help them understand the new rules and how to apply them in daily operations.

Well-informed managers reduce the risk of disputes and improve workplace morale.

Update Employee Contracts and Communication

Once policies are updated, revise employee contracts to reflect the new terms. Clear communication is essential to avoid confusion or mistrust. Consider these steps:

• Send updated contracts or addendums to all employees

• Hold information sessions or Q&A meetings

• Provide written summaries of key changes

• Encourage employees to ask questions and provide feedback

  
  

Transparent communication helps build trust and ensures everyone understands their rights and responsibilities.

Close-up of updated employment contract highlighting key changes

Implement a Compliance Monitoring System

Maintaining compliance is an ongoing process. Set up a system to regularly monitor and review your employment practices. This can include:

• Scheduled audits of HR policies and procedures

• Regular training refreshers for staff and management

• Tracking changes in employment law updates

• Establishing a feedback loop for employees to report concerns

  
  

A proactive approach helps catch potential issues early and keeps your business aligned with legal requirements.

Prepare for Dispute Resolution

Despite best efforts, disputes may arise. Prepare your business by:

• Establishing clear internal dispute resolution procedures

• Training HR staff in conflict resolution techniques

• Keeping detailed records of all employment-related decisions and communications

• Considering mediation or alternative dispute resolution options before legal action

  
  

Being ready to handle disputes professionally can save time, money, and reputational damage.

Use Technology to Support Compliance

Leverage technology tools designed for HR management to streamline compliance tasks. Features to look for include:

• Automated contract management and updates

• Digital training platforms for employee education

• Compliance tracking dashboards

• Secure document storage and audit trails

  
  

Technology can reduce administrative burden and improve accuracy in managing employment rights.

Engage with Legal and HR Experts

Employment law can be complex and subject to interpretation. Regularly consult with legal and HR professionals to:

• Clarify any uncertainties about the bill’s provisions

• Get advice tailored to your specific business context

• Stay informed about any further legislative changes

• Receive support during complex employee relations issues

  
  

Expert guidance helps you avoid costly mistakes and ensures your business stays on the right side of the law.