What the Employment Rights Bill Means for UK Workplaces (2025–2027)

The UK Government's Employment Rights Bill, described as the biggest upgrade to workplace rights in a generation, is progressing through Parliament and expected to become law in Autumn 2025. Here is a factual breakdown of the key stages and what businesses need to prepare for.

Autumn 2025: Trade Union Reforms Begin

• Trade unions will gain new rights, including access to workplaces (excluding dwellings), provided they hold an independent certificate.

• Changes affect rules on political funds, balloting, and recognition.

• These reforms will reverse some laws introduced by the previous government and will be phased in from Autumn 2025.

April 2026: New Leave Rights and Fair Work Agency Introduced

• Statutory Sick Pay (SSP): All workers will be entitled to SSP from day one, at 80% of weekly earnings or the flat rate (whichever is lower). This applies in Great Britain and Northern Ireland.

• Parental and Paternity Leave: Becomes a day-one right for all employees. Currently, eligibility depends on length of service.

• Fair Work Agency: A new body to unify employment law enforcement. Powers include enforcing statutory payments, representing individuals in tribunal claims, and offering legal support.

• Protective Awards: The maximum award for failing to follow collective consultation rules increases from 90 days to 180 days' pay.

October 2026: Strengthened Protections and Extended Tribunal Deadlines

• Fire and Rehire: Will be considered automatically unfair dismissal unless the employer faces serious financial difficulties.

• Tribunal Claim Deadlines: Extended from three to six months.

• Sexual Harassment: Employers must take "all reasonable steps" to prevent it. Also includes third-party harassment responsibilities.

• Union Rights Disclosure: Employers must provide information about the right to join a union alongside employment terms.

2027: Day-One Rights and Flexible Working as Default

• Unfair Dismissal Protection: Becomes a day-one right, with a proposed nine-month statutory probation period.

• Bereavement Leave: Minimum of one week’s unpaid leave from day one, covering wider circumstances (including miscarriage before 24 weeks).

• Flexible Working: Default unless employer can reasonably justify refusal.

• Collective Redundancy Rules: Will now apply across all employer sites, not just a single establishment.

• Pregnancy and Maternity Protections: Strengthened to cover pregnancy, maternity leave, and six months after returning.

• Zero-Hours Contracts: New rights to notice for shifts, compensation for last-minute changes, and the option for guaranteed-hours contracts.

• Menopause Support: Large employers (250+ staff) must create action plans to support menopausal employees and reduce the gender pay gap.

Post-2027 and Future Reforms

These future proposals are not part of the Employment Rights Bill but may follow via separate legislation:

• Right to disconnect

• Carer and parental leave reviews

• Equal pay reform (including for outsourced roles)

• Stronger protections for the self-employed

• TUPE and procurement system reform

• New rules for use of surveillance tech

What Cardiff Employers Should Do Now

Whether you’re running a small team or managing multiple sites, these reforms will impact your HR and operations. If you're based at Space2B or running a Cardiff-based business, we recommend reviewing your existing employment contracts, policies, and compliance workflows now.

Need flexible, private offices or meeting rooms for your HR and legal teams to manage these transitions?

Get in touch with Space2B for workspace options designed for growing businesses.