Employment Rights Bill
Alice Parker Senior Associate Farrer & Co
Employment Rights Bill – six practical steps to prepare The Employment Rights Bill, introduced as part of the Government’s “Make Work Pay” agenda, is widely regarded as one of its flagship policies. It will introduce a wide range of employment law reforms aimed at promoting fairer treatment for workers. From new protections against unfair dismissal to enhanced family leave, flexible working rights and new restrictions on fire-and-rehire practices, the reforms will directly affect how family businesses hire, manage and support their workforce. Family businesses are known for treating their employees with respect and integrity, so many will find that the new measures reinforce values they already hold dear. And, while the reforms will be introduced over time, early preparation can get you ahead of the changes and help you stay on top of what’s coming. Here are six practical steps family businesses can take to stay ahead of the curve.
1. Stay informed and track progress
they come into force.
A first step will be to review your employment contracts, staff handbooks and HR policies to identify areas that may be impacted and need updating. A well-planned audit will give you confidence that your business is ready to implement the updates when the provisions come into force. Certain changes, such as new restrictions on fire and rehire, will make it extremely difficult to impose contractual changes without employee consent. Family businesses would do well to take this opportunity to review employment contracts and ensure that terms are fit for purpose. You should check that provisions relating to probationary periods reflect the proposed statutory provisions around unfair dismissal. While it will still be possible to maintain separate contractual terms around notice during probation, these should be reviewed carefully to avoid conflict with statutory protections. 3. Assess and manage risk
One of the notable features of the Bill is its reliance on secondary legislation to confirm details and bring reforms into effect. Even after the Bill has become law, many of the provisions will only be finalised following consultation and further regulations. Implementation is expected to take place in stages throughout 2026 and 2027. For family businesses, staying informed is essential. Monitoring the progress of reforms and anticipated commencement dates for key reforms will enable timely and appropriate responses. Assigning someone internally to track updates and coordinate action will help ensure the business is well prepared. 2. Audit existing policies and contracts The Bill introduces enhancements to paternity and parental leave, bereavement leave, maternity redundancy protections, statutory sick pay, and flexible working. These changes will need to be incorporated into relevant policies as and when
As the Bill reshapes workplace
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