Practical steps People & Culture teams can take now to get ahead of the new Employment Rights Act

Alexandra White • January 13, 2026

Now that it’s law, the major reforms of the Employment Rights Act 2025 will be phased in from February 2026, April 2026, October 2026, and into 2027.

What’s changed isn’t just the law. It’s the operating model expected of employers. The legislation will expect more proactive prevention (especially on harassment), stronger enforcement capacity (via the Fair Work Agency), and tighter scrutiny of “flexibility” mechanisms (zero-hours arrangements, shift cancellation practices, handling of early exits and dismissals once unfair dismissal rights expand).


For People & Culture leaders, the practical question should be ‘What can we do now that will still be valuable even as details evolve?


The answer is to build readiness in the things that rarely change: data, process discipline, documentation, manager capability, and enforcement-proof evidence.


Here are the steps you can start now to avoid last-minute policy scrambles.


1. Build a phased ERB compliance roadmap, not a one-off project plan

The Employment Rights Act is rolling out in stages:

  • February 2026 (increased protection for industrial action and amendments to trade union activity)
  • April 2026 (SSP reform, day 1 paternity and unpaid parental leave rights, Fair Work Agency, doubling collective redundancy protective award, whistleblowing changes)
  • October 2026 (harassment duties, dismissal and rehire restrictions, tribunal time limits to claim extended from 3 to 6 months, more changes to trade union rules)
  • 2027 (unfair dismissal after six months from 1st Jan, increased pregnancy and maternity rights, bereavement leave, zero-hours reforms, shift cancellation compensation, gender pay gap and menopause mandatory action plans, even further trade union and collective consultation changes.)

ACAS provides a clear overview of this timeline:
👉
https://www.acas.org.uk/employment-rights-bill


Action now:

 If you haven’t already done so, create a single internal ERB roadmap that links each phase to:

  • impacted policies
  • operational processes
  • manager capability gaps
  • evidence you’ll need if challenged

This prevents duplicated effort and avoids the trap of updating policies without changing behaviour.


2. Start documenting people decisions as if you’ll need to justify them later

Several ERB reforms raise the standard of proof employers are expected to meet, particularly around consultation, fairness, and prevention.

This is already visible in the Statutory Code of Practice on Dismissal and Re-engagement, which emphasises meaningful consultation and last-resort use of dismissal and rehire:
👉
https://www.gov.uk/government/publications/dismissal-and-re-engagement-code-of-practice


Action now:

  • Introduce short decision records for higher-risk people decisions (contract changes, restructures, flexible working refusals, harassment outcomes).
  • Focus on why decisions were made, not just what was decided. This is one of the strongest forms of legal risk insurance available to HR.


3. Prepare early for statutory sick pay reform (April 2026)

From April 2026:

  • Statutory Sick Pay (SSP) will be payable from day one
  • The Lower Earnings Limit will be removed

In our opinion, if this is handled well,  it could reduce presenteeism and improve trust,  not just increase cost.


Action now:

  • Model the financial impact using historic absence data
  • Review how SSP interacts with occupational sick pay
  • Review contracts and sickness policies
  • Train managers on early, supportive absence conversations
  • Ensure Payroll are up to speed and fully prepared


4. Upgrade harassment prevention to meet the new “all reasonable steps” standard


Harassment prevention is becoming an operational responsibility, not a compliance checkbox.

From October 2026:

  • Employers will be liable for third-party harassment unless they have taken all reasonable steps
  • The duty to prevent sexual harassment is strengthened


Action now:

  • Identify roles exposed to customers, clients, or the public
  • Introduce third-party harassment reporting and escalation processes
  • Ensure your risk assessments (which should already be in place!) are fit for purpose to ensure you’re taking all reasonable steps to prevent harassment
  • Train managers on intervention, not just policy awareness

5. Assume enforcement scrutiny will increase - and prepare for it

From April 2026, the Fair Work Agency will consolidate enforcement of rights like SSP and holiday pay:

Action now:

  • Centralise records for pay, holiday, SSP, and working time
  • Clarify ownership of compliance evidence
  • Run a “what would we send an inspector?” exercise. If your data is fragmented, enforcement risk rises sharply.


6. Treat consultation as a capability, not an inconvenience

Two major changes raise the stakes, as poor consultation is no longer a manageable risk, it is a high-cost one:

  • Protective awards for collective redundancy failures double to 180 days’ pay (April 2026)
  • Collective redundancy numbers will be assessed across the whole organisation, not just individual sites (2027)


Action now:

  • Centralise redundancy tracking across the business
  • Standardise consultation materials and timelines
  • Train leaders on the difference between informing and consulting
  • Ensure you’re aware of when your duty to consult collectively is triggered (and seek professional people support if unsure - this one is too risky to get wrong).


7. Plan now for the effective end of “fire and rehire” as leverage

From October 2026, the Act will restrict how employers can use fire and rehire to implement changes to key contractual terms. If an employer dismisses a worker because they won’t agree to these changes, then that dismissal will be treated as automatically unfair. This includes things like pay, benefits, holiday, hours/shifts, and other core T&Cs. 


Action now:

  • Redesign your approach to contractual change
  • Build negotiation and consultation skills within HR and ER
  • Identify alternative levers for cost or structural change



8. Prepare managers for a stronger trade union framework

Trade union reforms begin in February 2026 and expand through October 2026 into 2027, including:

  • Easier recognition
  • Expanded access rights
  • New duties to inform workers of their rights


Action now:

  • Define how your organisation engages with unions
  • Train managers on lawful, calm, and consistent responses
  • Ensure facilities and time-off processes are workable
  • Consider your internal process for informing any new starters of their right to join a trade union

Fundamentally, the risk is not unions themselves,  it’s management that is unprepared to deal with workforce issues. 


9. Start cleaning up insecure work practices ahead of 2027 reforms

From 2027:

  • Zero-hours workers can request guaranteed hours
  • Compensation will apply for cancelled or curtailed shifts


Action now:

  • Map out those on zero hours or low hour contracts and what working patterns look like in reality. (If hours are stable, you should expect an obligation to offer guaranteed hours later)
  • Decide where zero hour contracts still genuinely make sense and can be justified
  • Audit shift cancellation patterns
  • Identify where flexibility masks poor planning
  • Improve workforce forecasting and rota discipline
  • Consider your internal process for offering guaranteed hours and what happens if refused
  • Look to revise contract templates to remove language that implies no obligation at all - detail around these regulations are still to be made clearer so be prepared to further adapt as needed. 


10. Prepare for unfair dismissal risk earlier in the employee lifecycle

From 2027, unfair dismissal protection applies after six months (down from two years).


Action now:

  • Standardise probation management
  • Train managers to effectively manage probations, document performance fairly and ensure any concerns are raised and noted early on.
  • Any extensions to probation periods need to be handled with care and professional advice sought - if you have a 6-month probation in place and wish to extend it, you will then be falling into the new qualifying period for unfair dismissal. 
  • Address teams with high early attrition


Before the pressure hits


The Employment Rights Act is not designed to catch out responsible employers. But it will expose organisations that rely on informal practice or undocumented decision-making.


People & Culture teams that invest early in strong manager capability, good communication, disciplined consultation processes, clear documentation and evidence and shared understanding of what “good” looks like under the new law will find the transition far less disruptive.



If you want to learn more and focus on what this really means in practice (not just what the legislation says), you can join our upcoming clinic here:
👉
https://luma.com/pcrncawu