contractual rights, redundancy, and restructuring are tightening

The framework for managing your workforce's contracts and any restructuring activity will become more restrictive and costly.

day-one unfair dismissal

While a full day-one right to protection from unfair dismissal (removing the two-year qualifying period) isn't expected until 2027, an employee can be dismissed during a proposed statutory 'light touch' initial employment period for reasons like capability or conduct. However, dismissals for redundancy will grant full rights from day one.

restricted fire and rehire

Dismissal will become automatically unfair if the reason is a failure to agree to a change in certain contractual terms (like pay, hours, or pensions). This practice is set to be banned from October 2026, with only a very limited exception for severe financial distress.

doubled redundancy liability

From April 2026, the maximum protective award for failure to carry out collective redundancy consultation is expected to double to 180 days' uncapped pay (up from 90 days). Furthermore, new regulations are expected to broaden the collective consultation trigger to potentially include redundancies across the entire business.

parental leave protection

Enhanced dismissal protections for pregnant employees and those returning from maternity leave (extending for six months after return) are planned for 2027. These individuals will likely have first preference for suitable alternative employment in a redundancy situation.

trade union rights and employee voice strategy

The Bill aims to make it easier for trade unions to gain representation, requiring employers to proactively manage their internal 'employee voice' strategies.

lowered recognition threshold

Measures in April 2026 will simplify trade union recognition, with a possibility that the membership threshold to trigger statutory recognition could drop significantly.

right to access

From October 2026, trade unions will have an enhanced right of access to the workplace, which includes the potential for digital access (such as communicating with workers).

proactive engagement is key

To effectively manage this shift, businesses should focus on building employee voice strategies and engaging regularly with staff to address concerns and "win hearts and minds".

next steps: getting in shape now

We strongly encourage you to:

Immediately review all staff handbooks, contracts, and disciplinary procedures to accommodate the new SSP rules (day one pay for all earners from April 2026) and parental leave rights (day-one paternity/unpaid parental leave from April 2026).
Review your sexual harassment risk assessment and control measures, with particular focus on third-party relationships.
Audit your zero-hours and casual worker contracts now, as the guaranteed hours provisions due in 2027 apply to both agency workers and internal casual workers.
Review your recruitment and probation management processes, as the costs and risks associated with new hires will increase once day-one dismissal rights are implemented.

We are committed to being your trusted partner through these changes.

Request a call back with our team today if you need help navigating what the Employment Rights Bill means for your organisation.

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