FBUK Magazine Issue 5 December 2025

Employment Rights Bill

Managing the new statutory probationary period will be crucial, including setting clear expectations, timelines and decision-making criteria. Performance management processes should also be revisited to support managers in delivering timely and constructive feedback. 5. Strengthen systems and record-keeping Effective HR systems will help underpin the procedures set out above and provide evidence of compliance. For example, for new statutory probationary periods, a workflow that monitors and flags probation milestones will ensure decisions are taken on time. Similarly, for workers whose working arrangements may trigger the duty to offer guaranteed hours, you should have systems capable of accurately tracking hours worked, including shift allocations and cancellations. You will need to ensure your systems are flexible enough to adapt as reforms are phased in, so appointing a project lead to oversee their implementation can help your preparation. It will be increasingly important to document decision-making, especially around probationary periods and flexible working requests. Clear record-keeping will be essential to provide an audit trail in the event of disputes. 6. Training and awareness Under the Bill, line managers will play a central role in implementing changes in workplaces. You should ensure they receive proper training, so they are equipped to fairly manage probationary periods,

respond appropriately to flexible working requests, oversee new guaranteed hours contracts and understand the implications of new harassment protections. You should also ensure that updates to the legislation form part of ongoing compliance and leadership training, to ensure consistency across your organisation. As the reforms come into force, clear communication and updated company policies will be important. It may be worth considering the benefits of engaging directly with employees or their representatives to understand workforce concerns and expectations. Final thoughts The Bill represents a significant shift in legislation towards what the government describes as greater fairness and transparency in the workplace. For many family businesses, the reforms may feel like a natural extension of existing values and current best practice. Nevertheless, the legal landscape is changing and preparation is key. By taking these steps now, family businesses can ensure they are ready to meet the new requirements and continue to support their staff as the legal framework evolves. You can find more information about the Bill and on individual reforms by scanning the QR code or visiting: www.farrer.co.uk/erb-hub

protections, family businesses will need to carefully assess any operations which may be particularly affected and plan actions to mitigate risk, whether through improved documentation, clearer policies, or enhanced training. The creation of the Fair Work Agency (FWA) will add another layer of oversight. Although its precise remit is still being defined, the FWA will bring together several enforcement functions under one roof and is likely to play a role in promoting compliance, for example, in relation to the National Minimum Wage and modern slavery offences. It may also have powers to investigate or intervene where standards are not met. For family businesses, this could represent a cultural shift as well as a legal one, requiring more formalised procedures and practices. 4. Implement robust HR procedures The Bill will have a direct impact on core HR processes, so it is critical that family businesses review these early to ensure they remain effective and compliant. As employees become more aware of their increased rights, and more willing to assert them, your internal processes may come under greater scrutiny, potentially leading to increased complaints. You should be prepared to handle concerns promptly and professionally, ensuring they are investigated and resolved in line with best practice. For example, for new protections against unfair dismissal after six months, family businesses must be confident their recruitment and onboarding procedures are robust.

FBUK Issue 5 30

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