LEGAL LOWDOWN _ BUSINESS SUPPORT
T he Employment Rights legislation in decades. Every building firm in the UK will feel the impact, with changes rolling out over the next two years. The Act contains major reforms being implemented in stages: eight changes in April 2026; eight changes in October 2026; and 12 changes throughout 2027. There’s a lot to prepare for, which is why FMB Industry Partner Citation has compiled a list of changes you need to plan for first. Act (ERA) 2025 is now law, bringing the most significant overhaul of UK employment Statutory sick pay from day one From 6 April 2026, statutory sick pay (SSP) becomes payable from the first day of sickness, scrapping the three ‘waiting days’. The lower earnings limit will also be abolished, extending SSP to all employees regardless of earnings. Those on lower pay will receive the lesser of 80% of average weekly earnings or the standard SSP rate. This could result in more short-term absences, especially during busy periods, and SSP costs could rise. Take action: Use robust absence management processes to control costs while managing cases fairly. Unfair dismissal from six months The qualifying period for unfair dismissal will be reduced from two years to six months from 1 January 2027 and the compensation cap will be removed. This increases the risks that come with six-month probation periods and performance assessments. Take action: You’ll need clear inductions, regular check-ins with documentation, and managers who address performance issues from day one. Zero-hours contracts reforms From 2027, employers must offer guaranteed-hours contracts once workers complete work over a specified period (expected to be 12 weeks). New rights to reasonable notice of shifts and cancellations, with compensation where this
What you need to know about the Employment Rights Act 2025 Worker rights reformed
What to prepare now These changes affect every aspect of how building firms manage their workforce – from site workers and office staff to subcontractors and casual labour. Make sure: paperwork is in order; contracts and handbooks are up to date; all pay and holiday records are accurate; and your systems reflect how your business actually operates. On 24 March 2026, FMB hosted a webinar with FMB Industry Partner Citation covering the ERA in detail. If you’d like to watch the recording on demand, visit the FMB website. The webinar provided an overview of the changes, how they may affect your business, and the steps you can take to prepare. MORE INFORMATION To learn how FMB Industry Partner Citation can support and protect your business, scan the QR code.
doesn’t happen, will change operational flexibility. Take action: For building firms juggling weather-dependent schedules and seasonal work patterns, you will need to plan your roster and how you deploy casual labour. Essential paperwork and processes From 7 April 2026, the Fair Work Agency will be established as a single enforcement body with new powers to enter premises and seize records. Building firms need: holiday records – kept for six years as it’s a criminal offence not to; pay and hours records – for National Minimum Wage compliance; SSP calculations and records; return to work documentation ; and self-certificates – consistently completed. The agency can issue penalties of 200% of any underpayment (capped at £20,000 per worker), plus recover enforcement costs, meaning it’s essential to protect your business.
Master Builder 39
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