Employment Rights Bill

What Employers Should Do Now

The April 2026 reforms are now in force and are already affecting employers’ contracts, policies, working practices and management steps. For many organisations, the immediate priorities include Statutory Sick Pay eligibility and administration, day-one family leave rights, tighter holiday and holiday pay record-keeping, and increased exposure where collective redundancy consultation is not handled correctly.

The legislation is immense in scale, but not every change will impact you or your business. We can help you assess what the reforms mean for your organisation, explain the likely risks and decisions to be made, and build a clear implementation plan that makes it easier for managers to adapt to changes consistently. That can include reviewing contractual terms and workforce models, and sense-checking processes such as sickness absence, family leave, performance and redundancy. We also help you put a clear approach in place that is defensible if issues escalate.

The Employment Rights Act 2025 is likely to affect how you make decisions about people, how consistently those decisions are applied, and how confidently your managers handle issues in real time. Waiting until changes take effect can leave you reacting under pressure, with policies and templates that no longer reflect the rules or the way your business operates.

What matters now is being clear on your risk areas and creating a workable plan. For most employers, that means checking whether your current documents and processes support the working arrangements you rely on, whether managers know what “good” looks like, and whether you have a consistent approach to sensitive issues like sexual harassment, absence, family leave, grievances, performance and redundancy. If you have variable-hours or casual workers, or you are growing quickly, it is especially important that your contracts and day-to-day practices match, so you are not creating avoidable exposure through inconsistency.

We help you take control early. We can review where you are today, highlight the priority actions, and support you to make changes in a way that is proportionate and practical for the future. That might involve a focused review of key documents, a manager-ready process refresh, or ongoing support as questions arise, so you can keep momentum in the business while making fair, defensible decisions.

The aim is simple: fewer surprises, clearer internal decision-making, and a stronger platform for the next chapter.

What stage is the Employment Rights Act 2025 at now ?

The April 2026 reforms are now in force and are already affecting employers.

● Statutory Sick Pay changes mean the waiting period and lower earnings threshold are removed, so eligibility starts earlier and covers a wider group of workers.
● Paternity leave and unpaid parental leave become day-one rights, which means employers need to review eligibility assumptions in contracts, policies and internal guidance.
● The Fair Work Agency is now in place as a single enforcement body with powers to enforce rights in areas such as pay, holiday pay and Statutory Sick Pay. For employers, that increases the importance of making sure records, calculations and internal processes stand up to scrutiny, particularly where pay and holiday arrangements have developed over time.
● Holiday and holiday pay record-keeping now needs close attention, particularly where pay calculations involve overtime, variable hours or other elements that may affect holiday pay.
● The maximum protective award for failures in collective redundancy consultation has increased from 90 days to 180 days’ pay per affected employee, which significantly raises the cost of getting consultation wrong.

What is due next?

Further reforms are due in October 2026, including stronger duties around harassment prevention.

● Take all reasonable steps to prevent sexual harassment. In practice, that is likely to mean closer attention to training, reporting routes, workplace culture and the steps taken to identify and reduce risk.
● Employers may also become liable for harassment by third parties, such as customers or clients, unless they can show they took all reasonable steps to prevent it. For businesses with customer-facing teams, that may call for a more structured review of risk, reporting and response.
● Complaints of sexual harassment now attract whistleblowing protection, which makes it even more important to respond promptly, fairly and with proper oversight from the outset.

What is coming in 2027?

A further set of reforms is expected in 2027.

● Shorter qualifying period for unfair dismissal claims.
● Removal of the cap on compensatory awards for unfair dismissal.
● Stronger restrictions on dismissal and re-engagement on worse terms.
● Reforms affecting zero-hours and low-hours working are also expected to develop further, including rights linked to guaranteed hours and compensation for short-notice cancellation of shifts.

What the reforms may mean for your business

For many employers, the real impact of the reforms will be felt in the everyday mechanics of people management, rather than just in written documents. If your business has grown using informal ways of working or service-based assumptions, those gaps will quickly become visible. With many protections applying much earlier, often from day one, there is less scope to rely on informal probationary periods or a ‘wait-and-see’ approach to employee performance. This places immediate pressure on recruitment, onboarding, and how early-stage issues are managed.

Line managers and HR teams will face heightened exposure. They will need to handle people related decisions of all sorts (including, for example, absence decisions, flexible working requests, and workplace complaints) with a fair, documented approach from the outset. Claims risk can grow rapidly, even when intentions are reasonable, if communication varies, notes are limited, or managers have not been trained to respond confidently.

If your business uses zero-hours arrangements, low-hours contracts, or frequent shift changes, the reforms fundamentally alter workforce planning. Flexibility does not necessarily disappear, but it must now sit on firmer, more transparent arrangements that are easy to explain, apply, and defend if challenged.

How We Support Employers Through The Transition

Changes on this scale can feel difficult to break down into practical action, particularly where legal reform overlaps with live staffing issues and commercial decision-making.

Our role is to help you identify, for you and your business, what matters now, what can wait, and what needs to be put in place so you can keep running your business with confidence.

Where a particular phase of reform is approaching, we help you focus on the areas that will make the biggest difference first, rather than trying to change everything at once. That might mean tightening up contracts and handbooks, sense-checking how your managers are handling key processes, or putting a clear plan in place to update policies and working practices in the right order.

You will have a clear point of contact who takes responsibility for progress and keeps you updated. We then bring together the right support across our employment law and HR team, so the seamless advice stays joined up, practical, and aligned to how your organisation operates day to day.

For some employers, the immediate need is a focused review of contracts and policies to make sure they are fit for purpose. For others, it is support with a pressing issue, such as a dismissal process, redundancy exercise, flexible working dispute or a harassment concern, while also planning for the wider reforms ahead. Either way, we keep the work grounded in real decisions, clear documentation, and consistent processes that your managers can apply.

HR Compass

If ongoing access to support would help, we can also provide it through HR Compass, our bespoke fixed-fee employment service. It is designed to give you a cost-effective way to pick up the phone and get support as issues arise, with costs agreed upfront and paid in monthly instalments. Where you want that extra reassurance, HR Compass can also be backed by insurance. It is a practical option for businesses that want greater certainty on cost, without losing access to specialist advice across the employment lifecycle[HR2.1].

HR Consultancy

Alongside legal advice, we also offer a dedicated HR consultancy service to support the practical side of implementation. The HR consultancy team is headed up by Helen Russell, Chartered FCIPD and Solicitor, supported by Eva Hood (HR Assistant) and the wider Employment & HR team. This service can sit alongside HR Compass or be used on a standalone basis, and support can include coaching managers, designing and running processes, supporting consultations, handling investigations, and helping you roll out changes in a way that is consistent and workable.

We are a people business with relationships at its heart. Many clients see us as an extension of their team, particularly where employment issues are ongoing and decisions need to be made quickly, carefully and with consistency.

Talk to Our Employment Rights Act Solicitors

Whether you are reviewing documents, planning for upcoming reforms, or dealing with a live employment issue that may already be affected by the new regime, we are here to help. We support SMEs, owner-managed businesses, in-house teams and larger employers who want clear advice and steady progress.

Our employment team combines legal and HR support across the employment lifecycle, helping clients deal with both immediate issues and longer-term planning. That joined-up approach means you can move forward with advice that is practical, consistent and easier to implement.

Known throughout the North, with offices spanning Lancashire, Cumbria and Staffordshire including Preston, Clitheroe, Garstang, Kendal, Lancaster, Lytham, Manchester, Southport and Stoke, we offer accessible support that stays close to what matters to you.

Call us or complete the form below and we will arrange an initial conversation. We will understand what you want to achieve, explain your options and outline the next best steps, so you can move forward with clarity and control.