Part 6: Employment Rights Bill – Government Publishes Roadmap for Phased Implementation

The Government has published its Implementation Roadmap for the Employment Rights Bill, setting out the timeline for delivery of key reforms. Royal Assent is still pending and did not take place at the end of October as anticipated. It was initially delayed due to a lack of parliamentary time to conclude the bill’s final steps and more recently due to the House of Lords sending the bill back for further amendments. Despite these hurdles, it is expected that the current roadmap will be implemented in accordance with the timescales set out below but with some changes to the detail of the reforms. Many of the headline changes – including those around zero-hours contracts and changes to unfair dismissal rights – will be phased in over the next two years, with some not coming into force until 2027.

This update provides an overview of the implementation timeline and the key implications for employers and insurers.

Key Implementation Milestones

Consultations on the 2027 measures will run through early 2026.

What This Means for Employers

1. ‘Day 1’ Unfair Dismissal Rights – Delayed and subject to ongoing consideration

The proposal for unfair dismissal protection to apply from day one of employment by 2027, with an initial ‘probationary’ period of up to nine months where a reduced threshold may apply for dismissal. The House of Lords is requiring a six-month qualifying period for unfair dismissal and it has been sent back to the House of Commons for debate. While any change will not be immediate, employers should start future-proofing probation and performance review policies now to reflect the lower risk tolerance this shift implies.

2. Trade Union Access and Strike Law Reforms – Immediate

Changes to industrial relations laws, including the repeal of minimum service levels during strikes and wider trade union rights, will come into force immediately after Royal Assent. The House of Lords has pushed back on the removal of previously proposed amendments regarding payments into union political funds and the requirement for a 50% turnout on votes for industrial action.

3. Expanded Parental and Whistleblowing Rights – April 2026

Employers will need to accommodate paternity and unpaid parental leave from day one of employment and strengthen whistleblowing policies in line with expanded protections and support from the Fair Work Agency.

4. Third-Party Harassment and Sexual Harassment – October 2026

A significant tightening of employer obligations:

The duty to prevent sexual harassment becomes a requirement to take “all reasonable steps”, raising the bar for compliance.
Employers will face direct liability for failing to prevent third-party harassment (i.e. by customers or suppliers).
This change will be particularly relevant to retail, hospitality, healthcare, and transport sectors, where staff regularly interact with the public. The Government has indicated no plans for carve-outs for “overheard opinions” or for the reintroduction of a “three strikes” rule. Employers must take proactive steps – including risk assessments, updated policies, training, and reporting protocols – to demonstrate compliance.

5. Effective ban on Fire-and-Rehire – October 2026

The use of dismissal and re-engagement to change contractual terms will be severely restricted, with protective awards doubling to 180 days for breach of consultation rules. Employers should now review change management and restructuring processes, especially in large or multi-site operations.

6. Zero-Hours and Agency Worker Rights – 2027

New rights for qualifying workers to request guaranteed hours and penalties for short-notice shift cancellations will be introduced. These will also apply to agency workers, with shared responsibility between employment agencies and hirers. Businesses reliant on flexible labour should begin reviewing contractual arrangements and scheduling systems in anticipation. The House of Lords has also proposed changes to this to allow employees the option to opt out after the initial reference period and offer of guaranteed hours. In addition, a proposal regarding seasonal work has been referred to the Commons for further consideration.

Practical Steps to Consider Now

• Audit HR policies and contracts; prepare for changes in probation, dismissal, redundancy, and harassment procedures.
• Train line managers, especially on changes to dismissal risks, harassment prevention duties, and union engagement.
• Update whistleblowing and grievance procedures to reflect enhanced protections and new third-party harassment risks.
• Review use of agency staff and zero-hours contracts and start scenario planning for future compliance obligations.
• Monitor consultations – some of the most significant changes (zero-hours rights, day-one dismissal, menopause and gender pay plans) are subject to consultation. Employers should be ready to engage or submit views where possible.

Ongoing Areas to Watch

Third-party harassment continues to raise legal and practical questions. While the Government has stated that the new duties respect ECHR rights (Articles 8 and 10), the Joint Committee on Human Rights has queried the lack of carve-outs and the absence of regulatory powers to define reasonable steps for third-party harassment.

Further guidance from the EHRC and potential regulations under clause 21 of the bill are expected – but the onus will remain on employers to assess risk and take action.

Need Support?

We continue to work with clients to understand the impact of the Employment Rights Bill and help prepare for implementation. If you would like a briefing tailored to your organisation or sector, please get in touch.

Vanessa Latham

Natalie Larnder