The UK Government is planning on implementing major reforms to employment law, known as “The Employment Rights Bill”. For businesses and employees across North Wales – whether in Rhyl, Mold, Denbigh or beyond – these changes are set to reshape how we handle everything from sick pay to trade unions. With the Bill now moving quickly through Parliament, it’s important to understand what may soon change.
Where We Are Now?
The Employment Rights Bill has not yet received Royal Assent, meaning the law has not changed yet, but it is expected to be approved very soon. The Government’s latest announcement on Unfair Dismissal rights (further detail below) marks an important shift in one of the most debated proposals.
Updated Position on Unfair Dismissal Rights
One of the headline reforms was originally the introduction of Day 1 unfair dismissal rights. That proposal has now been withdrawn.
Instead, the Government has confirmed that the qualifying period for unfair dismissal will move to six months, and this will be written into primary legislation. Because this sits in primary, not secondary, legislation, it will be much harder for any future government to reverse the position.
There are also clear signs that the Government intends to reform the compensation limits for unfair dismissal. It is not yet known whether:
● The entire cap will be removed (bringing unfair dismissal awards in line with
discrimination and whistleblowing claims), or
● One of the two existing limits will be removed.
At present, compensation is capped at the lower of a year’s salary or £118,223. Any reform to those limits would have a significant impact on both employers and employees.
This concession on Day 1 rights may help break the Parliamentary deadlock, meaning we could see the Employment Rights Bill finalised before the end of the year.
What’s Coming and When: Key Stages of Reform
Immediate Changes (post-Royal Assent)
Once the Bill is approved, some measures will take effect immediately, including:
● Repeal of the Strikes (Minimum Service Levels) Act 2023 and much of the Trade
Union Act 2016.
● Stronger protections for employees engaging in lawful industrial action
From April 2026: Big Shifts for SMEs
Several of the most impactful reforms come into force from 6 April 2026 (start of the UK tax
year):
● Statutory Sick Pay (SSP): the lower earnings limit is scrapped, and the three-day waiting period is removed.
● Parental leave: ‘day-one’ rights to paternity leave and unpaid parental leave
● Collective redundancy protective award doubles (from 90 to 180 days’ pay) for failures in consultation.
● A new Fair Work Agency will be established to enforce a number of the new rights.
● Whistleblowing protections will be strengthened, including covering disclosures of sexual harassment.
● Trade union reforms: electronic and workplace balloting permitted; easier recognition processes
● Employers asked to prepare gender pay gap and menopause action plans (likelyvoluntary until 2027)
From October 2026: Further Reforms
From 1 October 2026, more changes are expected (the details of these will be finalised subject to further consultations):
● A ban (in most cases) on “fire and rehire” practices – unfair dismissal if an employee refuses worse terms.
● Employers will have a statutory duty to take “all reasonable steps” to prevent sexual harassment, including harassment by third parties.
● Time limits for Employment Tribunal claims are likely to increase (for example, to six months for many claims).
● Stronger trade union access rights; employers will need to tell workers they have the right to join a union.
Looking to 2027 and Beyond
We are not yet sure when in 2027 the following changes will be implemented – and they may be subject to change but the Government has indicated that they will introduce:
● Greater protections for pregnant workers, bereavement leave (including after pregnancy loss), and flexible working.
● Regulation of zero-hours contracts
● Action plans on menopause and gender pay gap could become legally required.
What These Reforms Mean
These changes will be likely to affect your payroll costs, HR policies, and long-term workforce planning. For example:
Payroll & budgeting: Removing the SSP waiting period and the earnings threshold means more people may be eligible for sick pay, earlier.
HR policies: Contracts, parental leave policies, absence policies, and rehire practices will likely need reviewing.
Training & culture: You may need to provide training on harassment prevention and improve your whistleblowing processes.
Redundancy planning: If you anticipate collective redundancies, the doubling of protective awards is a significant cost risk.
What Employers Should Do Now
To stay ahead of the changes ahead, it’s worth taking early, practical steps:
● Review your existing employment contracts and HR policies
● Start planning for changes to SSP, redundancy processes and parental leave
● Consider internal training needs, particularly around harassment, whistleblowing and union access
● Keep an eye on consultation developments – especially compensation cap reforms
● Seek tailored legal advice so you can make informed decisions for your organisation
How Gamlins Law Can Help
At Gamlins Law, our employment law team is keeping a close eye on the implementation roadmap. We can provide a range of help for employers, such as a tailored review of your HR policies, or help with updating contracts. We’re here to help you stay compliant and ready.
If you’d like to understand how the Employment Rights Bill may affect your business, please get in touch – we’d be very happy to help.
