Our blog is a hub for HR insights, trends, and expert advice on all things related to HR, recruitment, and workforce management. We’re dedicated to sharing our knowledge, fostering innovation, and providing valuable resources for businesses and HR professionals.
Latest News
14th July 2025
The Employment Rights Bill represents one of the most significant changes to UK employment law in recent years.
Aimed at modernising workplace rights and improving conditions for millions of workers, the bill introduces a range of reforms that will affect and potentially present challenges for employers across all sectors.
In this blog post, we’ll break down exactly what the Employment Rights Bill means for employers, discussing the key legislative changes, legal responsibilities, and specific implications for SMEs.
The Employment Rights Bill is a landmark piece of UK legislation that was introduced into parliament in October 2024.
It introduces new statutory rights while reinforcing existing ones, with a particular focus on flexibility, predictability, and support for employees balancing work and personal responsibilities.
The bill, shaped by recommendations from the Taylor Review of Modern Working Practices, was first introduced as part of the UK Government’s wider commitment to promoting fair and transparent employment practices.
It has gained strong cross-party support and has been developed with input from employers, trade unions, and HR professionals, combining several previously individual employment law proposals under a single, structured framework.
The government has confirmed that the bill’s reforms will be introduced in phases, with formal consultations beginning in summer 2025.
These consultations will cover priority issues such as unfair dismissal protections from day one and fair pay agreements in key sectors.
Additional measures, including those affecting trade union processes, pregnancy protections, and zero-hour contracts, will follow in autumn 2025, with others, such as changes to flexible working and collective redundancy, expected in winter and early 2026.
Implementation of the new laws will also be staggered, using standard employment law commencement dates of 6 April and 1 October, starting from 2026 through to 2027.
This approach gives employers, particularly SMEs, valuable time to plan, consult, and adjust their policies and procedures accordingly. To help employers prepare for these changes, the government has published an official roadmap outlining when each measure will take effect and what employers are expected to do at each stage.
As briefly mentioned, the Employment Rights Bill introduces changes across several areas of workforce management. These include:
One of the most notable changes is the creation of a new statutory right for employees to request a predictable work schedule.
This applies to employees with at least 26 weeks of service, including those on atypical contracts like zero-hours, agency, and casual workers. Workers will have more certainty around the number of hours they work, the days or times they’re required, or the duration of their contract.
Employers will have one month to respond and must assess requests fairly, rejecting them only on specific grounds, such as the burden of additional costs or the impact on customer demand.
This change is aimed to reduce the insecurity that many workers in less stable roles face, and it is expected to have an impact on rota planning, contract terms, and workforce forecasting.
Redundancy protections will be strengthened for employees who are pregnant or returning from maternity, adoption, or shared parental leave.
Under the new rules, these employees will have priority access to suitable alternative roles in the event of a redundancy, both during their leave and for 18 months after they return to work.
This is a significant extension from the current protection period, which typically only covers the duration of leave. This is aimed to reduce the risk of unfair dismissal during vulnerable periods and to help working parents and carers return to work.
Employees will be able to request flexible working from their first day of employment, removing the existing 26-week qualifying period.
The process for making and handling requests will also be improved:
Flexible working can include changes to hours, times of work, or location (e.g. hybrid or remote options). As the demand for flexibility grows across all industries, employers must ensure that they have clear procedures in place for reviewing requests and communicating decisions.
A new statutory right to unpaid carer’s leave will be introduced, allowing employees to take up to five days per year to care for a dependent with a long-term care need. This applies from day one of employment and can be taken as full or half days.
Eligible reasons include caring for an elderly relative, supporting someone with a physical or mental health condition, or assisting a dependent who requires long-term care due to disability or illness.
Employers must ensure this leave is recorded and managed separately from other types of absence (e.g. annual leave or compassionate leave), and that employees are not penalised for taking it. This measure is designed to support the growing number of working carers in the UK.
While the Employment Rights Bill introduces protections intended to benefit employees across the board, its impact will be felt most acutely by SMEs.
Unlike larger corporations, SMEs may have fewer internal resources to handle the operational, financial and procedural changes the bill will require over the coming years.
Here are some problems that these businesses may face:
One of the key upcoming challenges is managing more predictable working patterns and increased employee flexibility, particularly for businesses that rely on seasonal or zero-hours contracts.
Meeting new obligations based on predictable working patterns could require a significant shift in how businesses manage staffing.
This may include hiring more employees to fill gaps, reworking rotas to provide advance notice of shifts, or reducing reliance on ad hoc or last-minute labour arrangements.
For smaller organisations with limited resources, these changes can place added pressure on operational planning, budgeting, and day-to-day management.
The bill will require thorough reviews of existing employment policies, including contracts, handbooks, and onboarding materials.
For SMEs without a dedicated HR function, this can quickly become time-consuming and adds another layer of complexity, particularly for businesses already operating with limited resources.
Changes introduced in the bill can add financial and administrative strain on smaller businesses.
While some of the new entitlements do not have direct salary costs, they can still cause staffing gaps and disrupt workflows, which can result in a loss of productivity.
In many cases, businesses will need to arrange temporary cover or redistribute workloads, which can result in additional costs and resource challenges.
When these operational pressures are combined with rising HR responsibilities, stricter documentation requirements, and tighter reporting expectations, the impact on SMEs can be significant.
Employers who fail to meet new obligations under the bill may face a range of consequences. These include:
One of the most significant risks of non-compliance is the potential for Employment Tribunal claims.
If an employee believes their rights under the new legislation have been violated, such as being denied flexible working hours without proper justification, they may pursue legal action.
For employers, this can result in costly and time-consuming proceedings that damage both finances and workplace morale.
Tribunal outcomes can lead to substantial financial consequences, including compensation awards to employees and potential fines.
Even if a case doesn’t go to tribunal, the cost of legal representation, settlements, and time spent dealing with disputes can be a significant burden on a business, particularly for smaller employers without internal legal or HR departments.
Beyond legal and financial risks, failing to meet obligations under the Employment Rights Bill can damage a company’s reputation.
A public Employment Tribunal or dispute can affect how customers, clients, and prospective employees view the business. In a competitive market, reputational harm can be just as damaging as a financial loss.
There are several proactive steps SMEs can take now to stay ahead of the bill. These are:
Start by reviewing all existing employment contracts, handbooks, and HR policies. Identifying outdated clauses or areas that don’t align with the upcoming legal requirements will help you prioritise updates.
An early audit ensures you’re not caught out when the bill takes effect and gives you time to make changes with minimal disruption.
Examine how your business currently manages flexible working requests, carers’ leave, and other time-off entitlements.
Consider whether your systems and processes are equipped to handle an increase in these types of requests, and how your business can accommodate greater predictability in shift planning.
Aligning existing practices with future expectations now can reduce the risk of rushed decisions later.
Those responsible for implementing HR procedures on the ground need to understand how the changes will affect everyday operations.
Providing training on new employee rights, updated request processes, and fair handling of schedule changes will ensure a consistent and compliant approach across the business.
Early awareness also helps managers handle sensitive conversations with confidence.
Keeping an eye on official updates, consultations, and finalised implementation timelines is essential for planning.
Regularly checking government sources will help you anticipate what’s changing and when, giving your business time to prepare.
For SMEs without a dedicated HR function, working with a qualified HR partner, like ourselves, can make a significant difference.
External consultants can carry out detailed compliance audits, update key documentation, and advise on policy changes tailored to your specific business needs.
By building a compliance roadmap early, you can spread the workload and avoid the risks of last-minute fixes.
At Sapphire HR, we specialise in helping SMEs stay ahead of legal obligations with flexible, expert-led support tailored to your structure and budget.
We offer several tailored HR solutions designed to help businesses stay compliant with upcoming legislation like the Employment Rights Bill.
This includes our HR Unlimited service, a comprehensive outsourced solution for employers who need consistent, year-round support and our HR on Demand service, ideal for businesses seeking flexible, short-term assistance whenever issues arise.
Whichever option you choose, our goal is simple, to take the pressure off your business and ensure you remain fully compliant.
If you’re unsure where to begin with the Employment Rights Bill, now is the time to act. Our team is ready to help you prepare before the reforms take effect.
Contact us to book a consultation today.
Here to Help, Not Replace Experts:
The information contained in this blog presented for general informational purposes only. While we strive to provide accurate and up-to-date content, legal and HR practices can evolve rapidly. This blog is not a substitute for professional advice.
For specific questions or concerns regarding your unique situation, we highly recommend taking professional advice and booking a consultation with a Sapphire HR Consultant. Our consultants are experts in the field and can provide tailored guidance to address your specific needs.
We aim to work truly in partnership with our client organisations and to develop a high-quality, competent HR Service for all clients, the HR Provider that they can rely on and who gets to understand the culture and vision of your business.
