The Employment Rights Bill webinar: navigating the recruitment challenges

If you work in HR or are a people leader, the Employment Rights Bill is about to change your world. This is not just another piece of legislation; it marks a fundamental shift in UK employment law that will impact everything from unfair dismissal rights and flexible working, to zero-hours contracts, parental leave and trade union rights. The new rules will affect your recruitment strategy, your onboarding and probation strategies, your contracts of employment and your risk exposure. If you are not prepared, you risk confusion, legal claims and disruption across your workforce.

In our recent webinar with Emma O’Connor, Employment Partner at Doyle Clayton, we unpacked what this sweeping legislation means for UK employers and HR professionals. The session was packed with practical advice, strategic insights and real-world examples to help you prepare for the new rules and avoid costly mistakes.

This article is your roadmap to what is coming, what you need to do now and how to turn legislative change into a strategic opportunity. Below, we break down the key changes, explain what they mean for your people management strategies and give you practical steps to stay compliant and ahead of the curve. Whether you want to avoid chaos, protect your business or simply be a better HR leader, you will find what you need here.

Please note, this is a practical overview based on the latest information, not formal legal advice. If you have specific questions or need tailored support, reach out to us directly.

Where are we now? Government “u-turns” on unfair dismissal rights

After months of back and forth between the government and the House of Lords over proposed changes to ordinary unfair dismissal qualification periods, the government have announced that its manifesto pledge to bring in day-one unfair dismissal rights will be amended in favour of a six-month qualifying period of service. This is a huge change to the proposals originally put forward by the government.

This change effectively means that, subject to other proposed amendments made by the House of Lords, the Employment Rights Bill should receive Royal Assent. In addition, the government has also indicated that there may be further changes to the compensation regime for unfair dismissal, including potentially removing the current 52-week compensation limit but retaining the overall compensation cap.  We await further details on this. Another change to watch – and one which will have a massive impact on next steps – is a proposal to bring in the qualification change from “early 2026” (maybe April 2026) and not the planned 2027. 

The government’s roadmap includes phased changes from April 2026 through to 2027, but these dates are not set in stone. There is a lot of secondary legislation, consultation and practical detail still to come. If you are feeling a bit in limbo, you are not alone.

Other key changes and new rules (subject to change)

Rights to parental leave and paternity leave are set to be expanded and be available from the first day of employment, although the service qualification and other eligibility requirements to receive statutory paternity pay remain.  There are also proposed new protections from dismissal for pregnant women and new mothers returning from maternity leave (and for a period of six-months after their return). Eligibility for statutory sick pay (SSP) is expected to change, with the removal of the lower earnings limit and waiting period, meaning more employees will be entitled to receive pay when they are unwell.

The Bill also proposes greater protections for zero and low hours workers and agency workers which includes the right to be offered minimum guaranteed hours as well as compensation if a shift is cancelled or curtailed at short notice.  The specifics are still being worked out, and we are waiting for more detail; however, this change will have a profound impact on the way businesses engage with and use such workers.

New employer liabilities for third-party harassment and sexual harassment are being introduced, plus the “reasonable steps” duty under the Worker Protection (Amendment of Equality Act 2010) Act 2023, will increase to “all reasonable steps”.  Employers must review the harassment and sexual harassment audits, renew and refresh targeted and specific training for managers/employees and Boards as well as review their complaints and monitoring procedures, amongst other key active steps.    Trade union rights are set to increase, with, amongst other changes, a duty to inform employees of their right to join a trade union and new workplace balloting rules. The creation of the Fair Work Agency is planned to help enforce employment standards. Another change which will have a real impact on employers is the increase in employment tribunal limitation periods from 3 to 6 months.

Other proposed changes include the introduction of statutory bereavement leave, statutory flexible working changes, a need for menopause action plans for larger employers and updates to collective redundancy consultation as well as an increase in protective award compensation limits and industrial action rules. Again, many of these are subject to consultation and further secondary legislation.

The roadmap: what is changing and when?

The government’s indicative roadmap is as follows, but please treat these dates as provisional:

• Late 2025: the Bill is expected to pass, with some immediate changes to trade union rights and industrial action possible
• April 2026: updates to family leave, statutory sick pay, whistleblowing protections and the establishment of the Fair Work Agency are anticipated
• October 2026: potential restrictions on fire and rehire, new sexual harassment and third party harassment laws, changes to tribunal claims time limits and further trade union rights
• 2027: introduction of unfair dismissal rights after a six-month qualifying period of service (but note this may change to early 2026), new equality and menopause action plans (for larger employers), changes to flexible working, bereavement leave and regulation of agency workers and umbrella companies

But let’s be honest, these dates and details could shift, and much will depend on the outcome of ongoing parliamentary debates and consultations. If you are asked by your CFO whether you should be doing anything now, the answer is yes, but with the understanding that we will know more once consultation exercises have been completed.  However, we know the direction of travel.

What does this mean for HR professionals?

For those in HR, these changes mean that recruitment and onboarding processes must become more rigorous. The new unfair dismissal regime, means hiring decisions need to be right from the start. This does not mean adding more interview stages, but making each stage count with robust assessment tools, clear job descriptions and objective selection criteria.

Early engagement with recruitment partners is essential, using their market knowledge for workforce planning, benchmarking and pipelining talent. As we discussed in the webinar, this is a great opportunity to build stronger, more collaborative relationships with your recruitment suppliers.

Onboarding must be structured and engaging from the first day, with probationary periods, expectations and review processes clearly defined. Regular check-ins, clear objective setting and documented feedback will be more important than ever. Reviewing employment contracts – in particular, the length of probation periods (and any periods of extension) and policies is also critical. Notice periods too should be kept under review as well as options such as payment in lieu of notice clauses. It is important to take advice on contracts. Managers will need training on how to manage probation and to make timely, well-documented decisions. Do not forget, this is not just about ticking boxes: embedding a supportive, well-communicated process is key. Performance management should focus on positive, supportive people management. Managers must be trained to have courageous conversations and make early, fair decisions. With potential compensation for unfair dismissal claims being significant, the stakes are high. HR and managers must understand the legal framework and act reasonably at all times.

Employment contracts, policies and procedures should be updated to ensure compliance with the new rules, especially around dismissal protections, family leave, flexible working, harassment/sexual harassment and trade union rights. Settlement agreements and NDAs are also likely to change, particularly regarding sexual harassment allegations.

Workforce planning and audits will become more complex. Employers will need to review their use of agency workers, zero/low hours workers and umbrella companies. New regulations will require careful auditing of who works for you, how and for how long. Preparing for collective redundancy and trade union changes are also essential, with updated processes and training for teams on new consultation and notification duties.

How to prepare for the Employment Rights Bill

With so much change on the horizon, now is the time to act. Here are some practical steps to help you stay ahead:

• Review and update employment contracts, policies and probationary periods
• Embed robust recruitment and onboarding strategies to support compliance and retention
• Train HR teams and managers on new legal duties, in particular training (and refresher training) around sexual harassment and third party harassment prevention
• Audit workforce composition and agency worker arrangements to prepare for new rules
• Make early, well-documented decisions on performance and probation to reduce legal risk
• Plan for increased resource needs in HR, learning and development and recruitment

If you are feeling overwhelmed, you are not alone. As we said in the webinar, HR teams are often time-poor, so do not hesitate to outsource where you can and seek specialist advice.

Conclusion: start preparing, but stay flexible

The Employment Rights Bill will bring significant changes to UK employment law, affecting everything from unfair dismissal rights and flexible working to zero-hours contracts, parental leave and trade union rights. But much remains uncertain, and the final shape of the law will depend on ongoing parliamentary debate and consultation.

If you are an HR professional looking for guidance or support, please reach out. We are here to help you navigate these new rules and make sure your organisation is ready for what comes next, whatever that may be.

Get in touch

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Meet Your Panellists

Aseel Ibrahim

Manager | Commerce and industry
Frazer Jones
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Aseel started her career in luxury retail, building and managing high performing teams for some of the world’s most successful brands.

She then undertook her CIPD level 5 qualification and decided to move into HR recruitment. Her commercial background coupled with her passion for all things HR has proven to be highly successful. Aseel has built fantastic relationships across technology, fintech, media, creative industries and retail.

She looks after Frazer jones permanent hiring and executive search across HR, learning and development, talent acquisition and other roles across the people function.

Emma O’Connor

Partner
Doyle Clayton
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Emma is a highly experienced employment lawyer, specialising in providing strategic and practical advice to businesses across the UK, EU, and globally. With a reputation for delivering commercially focused legal advice and training solutions, she works closely with HR teams, Boards, managers, and senior leadership teams to navigate complex employment issues effectively.

With over 20 years of experience in employment law, Emma has a proven track record in advising businesses across various sectors, including finance, technology, healthcare, leisure, hospitality and professional services, providing pragmatic, commercially relevant and legally tailored advice to the specific needs of each business.