The Big One: What the Employment Rights Act means for your business
The long-anticipated changes brought in by the Employment Rights Act are now officially underway—and for employers, the impact is significant.
If you’ve joined any of our recent webinars or workshops, you’ll already know that the first tranche of changes came into force in April this year. But the reform doesn’t stop there. A second wave is arriving this month, with even more to follow over the next few years.
Here’s what employers need to know—and why staying informed is essential to protecting your people and your business.
What’s changing this month?
The next set of reforms introduces several high-profile updates, including:
- A ban on fire-and-rehire practices
- A new Fair Pay Agreement Negotiating Body for adult social care
- Stronger legislation on tipping to ensure fairness and transparency
- A strengthened employer duty to take “all reasonable steps” to prevent sexual harassment
- Expanded trade union rights
These changes reflect a shift toward greater worker protection, transparency and accountability—and they place new obligations on employers in how they manage, communicate and lead their teams.
What’s coming in 2027?
The reforms don’t end here. Further changes are planned for 2027, with preparations starting well before then. These will include:
- Mandatory gender pay gap and menopause action plans (voluntary from April 2026)
- Enhanced rights for pregnant workers
- Statutory bereavement leave
- Stronger protections against zero-hour contract abuse
- Regulation of umbrella companies
- “Day 1” unfair dismissal rights, with consultations beginning this summer and continuing into 2026
These proposals mark some of the most substantial employment law changes in years—meaning employers need to adapt early to avoid risk.
What this means for Employers: The key implications
We’re reviewing each announcement closely to understand the full operational and legal impact for businesses. So far, here’s what you need to prepare for:
- Increased Risk & Admin
Managing short-service dismissals, probation periods and unfair dismissal claims will become more complex.
Businesses may need to adopt longer probation periods (around nine months) and more robust documentation.
- Policy & Contract Overhaul
Policies and contracts will need updating to reflect:
- New day-one rights
- Expanded flexible working provisions
- Strengthened sexual harassment prevention duties
Onboarding processes may also require refreshing to ensure compliance from the outset.
- Zero-Hours Contract Management
Employers will be required to offer stable, predictable hours to regular workers and provide compensation for short-notice cancellations.
This change will particularly affect sectors with fluctuating staffing models.
- Ban on Fire-and-Rehire
Aside from insolvency situations, employers will no longer be able to unilaterally change terms and conditions using this approach.
This means clearer communication, better planning and more effective consultation processes will be essential.
- Proactive Anti-Harassment Duty
Employers must now demonstrate that they have taken all reasonable steps to prevent sexual harassment—not simply respond to allegations.
This will require updated policies, manager training, culture audits and proper reporting mechanisms.
If you haven’t yet joined one of our Employment Rights Act webinars or workshops, now is the time.
Our HR consultants can:
- Walk you through every change
- Help you update policies and contracts
- Review your HR processes
- Support you through implementation
- Reduce your exposure to legal risk
Feeling Overwhelmed? We’re here to help
The Employment Rights Act represents one of the biggest HR and compliance shifts in decades. Preparing early is the best way to minimise risk, reduce disruption and maintain a confident, compliant workplace.
If you’d like to find out how Pure HR can help you navigate these significant changes call Steph on 01794 327490.
