The Employment Rights Bill UK has officially cleared its final hurdle and is expected to become law before Christmas. In plain English, this is the biggest change to UK employment law most employers will have dealt with in their working lives.
And while the headlines focus on workers’ rights, the reality is this bill will significantly change how businesses hire, manage, and support people from day one.
If you employ staff, or plan to hire in 2026 and beyond, this is one to pay attention to.
So, what has actually happened?
After months of back and forth between the House of Commons and the House of Lords, the final objections were withdrawn this week. That means the bill is now set for Royal Assent and will become law shortly.
The changes apply across England, Scotland and Wales. Northern Ireland is not included.
Some measures will come into force quickly. Others will follow once the government finalises the detail through secondary legislation. Either way, employers now have clarity on direction and very little time to ignore it.
The key changes employers need to understand
Unfair dismissal protection after six months
This is one of the biggest shifts.
- Previously: unfair dismissal protection after two years
- Going forward: protection after six months
While the original proposal for day one unfair dismissal rights was dropped, six months is still a major change. Employers will need to get much sharper, much earlier when it comes to performance management, feedback, and documentation.
Worth noting: this change will be backdated from January 2027. Anyone who already has six months’ service at that point will immediately be protected.
If you rely on “we’ll see how it goes” probation periods, that approach is about to get risky.
Sick pay and paternity leave from day one
Employees will now be entitled to:
- Statutory sick pay from day one
- Paternity leave from day one
This removes the buffer many employers currently rely on during the early stages of employment. For businesses with high turnover, shift work, or seasonal hiring, this will have cost and planning implications.
Stronger protections for pregnancy and maternity
Protections for pregnant employees and new parents are being strengthened further, particularly around dismissal and treatment at work.
For employers, this means decisions need to be fair, well evidenced, and clearly documented. Casual or poorly handled processes will carry more risk than ever.
Zero-hours contracts and minimum hours
Zero-hours contracts are not banned, but they are being tightened.
The bill introduces measures to give workers more security around minimum hours and working patterns. Employers using flexible contracts will need to review how these are structured and managed.
Flexible working is no longer “nice to have”
Flexible working is being reinforced as a standard consideration rather than a perk.
For many employers, this simply formalises what good businesses already do. For others, it will require a rethink of working patterns, job design, and expectations.
Why this matters for employers right now
HR and employment law experts are clear on one thing: this bill fundamentally shifts the balance of the employer-employee relationship.
Shorter qualifying periods mean:
- Less margin for error when hiring
- Earlier need for clear objectives and feedback
- Managers needing confidence to address issues quickly and fairly
There are also unresolved questions still to be finalised, including:
- Compensation limits for unfair dismissal
- Tribunal capacity and enforcement
- Changes to collective consultation and trade union recognition
These details will come, but the direction of travel is set.
What employers should be doing next
Even before every detail is confirmed, employers should already be:
- Reviewing contracts and policies
- Tightening up probation and performance management processes
- Training line managers to give clear, constructive feedback early
- Thinking more carefully about hiring decisions and onboarding
This is particularly important for smaller businesses without in-house HR teams. Waiting until the law is live is likely to mean reacting under pressure.
Our take at Ad Talent
From a recruitment perspective, this bill reinforces something we have always believed:
Hiring right matters more than ever.
When employee protections kick in sooner, getting the role right, the advert right, and the expectations right from day one becomes critical. Rushed hiring and vague job specs will cost more in the long run.
The Employment Rights Bill marks a new era for UK employment. Businesses that prepare early will adapt. Those that do not will feel the pressure quickly.
If you are planning to recruit in 2026, now is the time to slow down slightly, think smarter, and build stronger foundations.
And if you want a sounding board on what this means for your hiring plans in 2026, you know where we are.
If you are planning to recruit in 2026, choosing the right hiring model from the start matters more than ever. Explore our flat-fee recruitment packages.
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