The Employment Rights Bill has passed the final stage within the House of Lord and is due to receive Royal Assent later this week.
The Strikes (Minimum Service Levels) Act 2023 will be repealed following Royal Assent.
As a result, statutory sick pay, paternity leave and unpaid parental leave from the first day of employment, and new protections for pregnant women and new mothers, will come into force in April 2026. Simplifying how a trade union can gain recognition in a workplace will also take effect from April 2026.
In October 2026, an enhancement of the duty to prevent sexual harassment and restrictions on fire and re-hire practices are expected.
In January 2027, protection against unfair dismissal with a reduced qualifying period of six months is scheduled to begin.
Peter Cheese, chief executive of the Chartered Institute of Personnel and Development (CIPD), and a representative in the government’s tripartite discussions on the Employment Rights Bill, said: “The passing of this bill, after a difficult passage through Parliament, marks a significant shift in employment rights and the rights of trade unions and it has been a key pillar of the government’s agenda. It was finally achieved through the process of consultation and pragmatic compromise on key issues around the early stages of employment. This approach will continue to be needed on the many details still to be worked through that will now be part of secondary legislation.
“It now provides clarity for employers and sets a timeline for businesses to prepare for the many changes, and in reviewing key people management practices and policies, some of which must start now. The backdating of the now agreed six-month qualification period for unfair dismissal, which comes in to effect from January 2027, means it applies to anyone who has, by then, completed at least six months in employment, emphasising the importance of clear accountabilities, performance management and feedback practices, and policies.”
Florence Brocklesby, founder of Bellevue Law, added: “Employers should now focus on the important task of adapting policies and practices to comply with the new legislation. There are a number of significant changes, and employers should treat implementation as a major project, requiring adequate senior management and HR resource to ensure a smooth roll-out.”
Colin Leckey, partner at Lewis Silkin, said: “There will definitely be a sense of relief among employers that it’s the end of the road and an end to prolonged uncertainty. The end result is that the government is going to have to work quite hard going into 2026 to restore confidence that the measures in what is now the act will be developed and implemented with proper thought and understanding. Every HR team will need to invest time in understanding what this means for their policies, and processes.”
