UK Employment Rights Bill Passed: What Employers Should Do Next

Author – Phill Anderson, Global HR Director at Briars

After months of parliamentary scrutiny and prolonged back-and-forth between the Commons and the Lords, the Employment Rights Bill has now been passed. For UK employers, this brings long-awaited certainty but also marks the beginning of a significant period of change.

The legislation represents the most substantial overhaul of employment law in decades. While some of the original proposals were moderated during the Bill’s journey through Parliament, the final package still introduces wide-ranging reforms that will affect how organisations hire, manage and support their workforce from 2026 onwards.

Below, we’ll summarise the key elements of the final Bill, share our reactions and outline what employers should be doing now to prepare.

Key Updates: What the Final Bill Confirms

The final version of the Employment Rights Bill confirms several important points for employers:

• Unfair Dismissal: Six-Month Qualifying Period
  Unfair dismissal protection will apply after a six-month qualifying period, rather than from day one. Existing day-one protections for discrimination and automatically unfair dismissal remain in place.
• Higher Compensation Exposure
  The cap on unfair dismissal compensation will be lifted, increasing potential exposure where processes and documentation are weak.
• Day-One Statutory Sick PayDay-one statutory sick pay will be introduced, alongside the removal of waiting days and lower earnings limits.
• Day-One Parental Leave RightsDay-one paternity and parental leave rights are confirmed.
• Fire-and-Rehire RestrictionsNew measures will tighten rules around fire-and-rehire practices, with further detail to be set out through a statutory code.
• Stronger Harassment Prevention DutiesStronger harassment prevention duties will apply to employers.
• Creation of the Fair Work AgencyThe Fair Work Agency will be established to strengthen enforcement of employment rights.
• Further Reforms Through 2027Further reforms, including menopause action plans for large employers, expanded parental protections and additional reporting duties, will be phased in through 2027.

The direction of travel is clear: higher standards, stronger protections, and greater expectations on employers to demonstrate fairness, consistency and compliance.

Reaction from Briars

Phill Anderson, Global HR Director at Briars, commented:

“The passing of the Employment Rights Bill brings clarity after a long period of uncertainty. While the government has stepped back from day-one unfair dismissal rights, the overall impact for employers remains significant. The combination of earlier protections, higher compensation exposure and increased enforcement means businesses need to be far more deliberate in how they manage people, processes and documentation.”

Jenny Outhwaite, Senior HR Consultant at Briars, added:

“What’s important now is not just understanding the legislation but translating it into practical action. These changes will touch contracts, policies, payroll systems and management capability. Employers that start preparing early will be far better placed than those who wait until deadlines are looming.”

What This Means for UK Businesses

For UK-based employers, the Employment Rights Bill increases both risk and exposure.

While many organisations already operate within compliantly in a regulated environment, the Bill raises the bar on:

• How consistently processes are applied
• How well decisions are documented
• How confidently employers can demonstrate fairness

The combined effect of earlier employee rights, higher compensation exposure and stronger enforcement means that informal or inconsistent practices will carry greater risk. For UK employers, this is less about introducing entirely new concepts and more about removing gaps, strengthening discipline and improving governance across people management.

What This Means for International Businesses Operating in or Considering the UK

For international organisations, the Bill reinforces the UK’s position as a highly regulated employment market with strong worker protections and active enforcement.

Compared with many other jurisdictions, the UK framework will place greater emphasis on:

• Early-stage employee rights
• Formal dismissal and variation processes
• Clear policy coverage and audit trails

Businesses entering the UK will need to factor these standards into cost modelling, workforce design and market-entry planning. Aligning UK requirements with global HR frameworks will be critical to avoid inconsistency, exposure or operational friction as UK operations scale.

What Employers Should Do Next for 2026

With the Bill now passed, attention shifts from legislation to implementation. For most organisations, the next 6-12 months will be about planning, preparation and execution.

1. Review contracts and handbooks

Employment contracts, variation clauses and staff handbooks should be reviewed against the new rules, particularly around dismissal, sick pay, parental leave and contractual changes.

2. Strengthen probation and performance processes

The move to a six-month qualifying period for unfair dismissal increases the importance of robust probation frameworks, clear performance management and consistent documentation.

3. Prepare payroll and HR systems

Day-one sick pay and parental leave changes will require system updates well ahead of April 2026. Testing and validation should begin early.

4. Train managers

Many of the risks introduced by the Bill sit at manager level. Training on handling dismissals, flexible working, sickness absence and employee relations will be critical.

5. Plan for enforcement and reporting

With the Fair Work Agency and expanded reporting obligations on the horizon, employers should expect greater scrutiny and ensure audit trails are in place.

6. Consider capacity and capability

For many organisations, these reforms will stretch existing HR and admin teams. Fractional support or external expertise may be needed to manage the transition effectively.

How Briars Can Help

At Briars, we are already working with organisations to prepare for the Employment Rights Bill with our ERB Readiness Bundle. It’s designed to help employers prepare for the reforms with confidence.

The ERB Readiness Bundle includes:

• A comprehensive readiness audit, identifying gaps across contracts, HR policies and core people processes
• HR and payroll preparation, ensuring systems are ready for day-one rights and phased legislative changes
• Policy and handbook updates, aligned to the final legislation and implementation timeline
• Access to Fractional HR leadership, providing senior guidance on strategy, sequencing and delivery
• Cross-border support for international employers operating in, or expanding into, the UK

This bundled approach ensures nothing is missed, reduces last-minute pressure, and gives leadership teams a clear roadmap through 2026 and beyond.