Update on the Employment Rights Bill

As you will recall the Government proposed various changes to Employment law under the Employment Rights Bill. Many of these proposed changes are still being debated in Parliament and the House of Lords. However to give you an update I thought it timely to summarise some of the proposed changes and give an indication of the likely implementation dates:

April 2026

– Paternity leave:

Currently to take paternity leave a parent needs 26 weeks’ service. This will change so that all parents will be eligible for paternity leave from day one of employment. 

Recommendations: Family friendly policies will need to be updated in due course

– Parental leave:

Currently to take (unpaid) parental leave a parent needs one year of service. This will change so that all parents will be eligible for unpaid parental leave from day one of employment. 

Recommendations: Family friendly policies will need to be updated in due course

– Statutory sick pay (SSP):

Currently SSP is paid from day 4 of sickness absence however SSP will become payable from day 1 of absence and the lower earnings limit will be removed so that all eligible employees regardless of earnings will be entitled to SSP. Those earning less than the lower earnings limit (currently £125 per week) will become entitled to SSP at a rate of 80% of weekly earnings.

Recommendation: Absence policies and payroll systems will need to be adjusted in due course.

– Sexual harassment to become a whistleblowing disclosure:

Workers will be ‘protected’ from detriment and dismissal if they make a whistleblowing disclosure that sexual harassment is occuring or has occurred. The matters of disclosure which are already protected include criminal offences; miscarriages of justice and danger to health and safety.

Recommendation: Ensure that your Whistleblowing policy includes allegations of sexual harassment as qualifying disclosures and cross-reference this to the harassment policy. Ensure all grievances are taken seriously and are investigated internally.

October 2026 at the earliest

– ‘Fire and rehire’:

It will be automatically unfair to change certain terms of an employee’s contract without their agreement. This will include contractual terms relating to pay, hours, holiday and pensions or in order to hire another employee on the proposed terms to carry out the same role. Changes to other contractual terms will require extensive consultation with employees to gain their agreement, but will not result in automatic unfair dismissal. An exception will be made if it can be shown that the proposed changes will prevent the financial collapse of the employer. 

Recommendations: Review contractual terms to ensure they are fit for purpose

– Employers to become liable for third party harassment:

Employers will become liable for acts of harassment (e.g. on the basis of disability, sex, race, religion or sexual orientation etc) committed by third parties unless they can show they took all reasonable steps to prevent such acts.

Recommendations: Ensure policies regarding harassment include details of third-party harassment and take steps to prevent sexual harassment in the workplace eg through staff training; risk assessments and clear signage that sexual harassment will not be tolerated.

– Tribunal time limits:

Currently most Tribunal claims (eg for unfair dismissal and discrimination) must be brought within 3 months of the act complained of, but this time limit will increase to 6 months other than for breach of contract.

Other proposed changes within the Bill for example unfair dismissal becoming a ‘day one employment right’; changes to the rights of zero hours workers; and changes to bereavement leave are unlikely to become law until 2027 at the earliest. We will update you nearer the time.

If you would like to discuss any of the proposed changes above or need HR or Employment law advice of any kind please contact us via help@yourhrpartner.co.uk.

Categorised in: Employment law, News

This post was written by SKHR