PBS-0212-25 - Employment Rights Bill 2025 Guide_Nov 25 Edit
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Employment Rights Bill Speak to an expert 24/7 0800 433 4364peninsula-uk.com 1 Peninsula, V ictoria P lace, M anchester, M 4 4FB
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Employment Rights Bill What the Employment Day-onerights Rights Bill means for In April 2026, the qualifying your business service requirements will be removed for paternity and unpaid parental leave. The government's Employment Rights Bill contains significant reforms for employers… Both types of leave will become a day-one right to eligible Under a major overhaul of existing HR rights, UK employers can expect changes to the way they handle sick pay, employees. dismissal, and more. Read on to discover the biggest proposals set out within the Bill and when they will come into effect. Unfairdismissal Originally, the Government proposed removing the qualifying period to claim unfair dismissal entirely. However, after extensive opposition, it has instead accepted a six-month qualifying period. This means employees will gain unfair dismissal rights after six months of continuous service. The Government have confirmed this will come into force in 2027. Sick paychanges From April 2026, all workers will be eligible to receive statutory sick pay from their first day of absence, rather than day four, regardless of their usual earnings. SSP will be paid at the rate of 80% of workers' pay or the standard rate, whichever is lower. SexualHarassment In October 2026, the bill will increase obligations under the sexual harassment duty to require employers to take all reasonable steps to prevent it from happening. Speak to an expert 24/7 0800 433 4364peninsula-uk.com 2 Peninsula, V ictoria P lace, M anchester, M 4 4FB
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Employment Rights Bill The right tobereavement leave Under the bill, employees will be entitled to unpaid bereavement leave to cope with loss. This will also extend to employees who experience a miscarriage before the 24th week of pregnancy. This will be introduced in 2027. Restrictionsaround zero-hour contracts Also in 2027, zero hours and low hour workers, as well as agency workers will have a right to be offered a guaranteed hours contract if they regularly work consistent hours. Plus, employers will have to give reasonable notice and compensation when changing or cancelling shifts for zero hour workers and agency workers. Flexible working changes Employers will have to explain why it was reasonable to refuse a flexible working request from 2027. An end to‘fire and rehire’ Examples of flexible working schemes include: From October 2026, the bill will put a stop to •Remote work ‘fire and rehire’ schemes in most situations. •Hybrid work This means that fire and rehire dismissals will •Compressed hours be automatically unfair unless the change •Part time hours to the employee's terms was unavoidable to •Staggered shifts prevent effects of financial difficulties. •Flexible start and finish times Speak to an expert 24/7 0800 433 4364peninsula-uk.com 3 Peninsula, V ictoria P lace, M anchester, M 4 4FB
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Employment Rights Bill 2025 Legal protectionfor pregnant women Updatetrade Under the bill, pregnant women and new mothers have better legal union lawsprotection from dismissal for six months after returning to work. This is set to come into effect in 2027. The bill is set to make updates to trade union legislation helping to align with current economic needs. Changes toemployee contracts This includes removingFrom October 2026, employers will be required to inform employees restrictions on trade unionof their right to join a trade union alongside their contract. activity, like minimum service requirements. The bill also ensures better industrial relations – based on good faith,Establish newFair Work Agency negotiations, and bargaining. These measures will start toThe government is set to establish a new Single Enforcement Body come into force as soon as thecalled the ‘Fair Work Agency’ in April 2026. It will also be able to bring Bill becomes law.claims to employment tribunal on behalf of a worker and provide legal support/representation to workers bringing their own claim. Otherlegislative changes There are other legislative changes which the government plans to make in relation to the Employment Rights Bill and other relevant laws. These areas include: •Introducing the new ‘single worker status’. •Extending collective redundancy consultation requirements. •Aligning Minimum Wage to tackle low pay and cost of living issues. •And more – contact a Peninsula adviser today to discuss other changes… Speak to an expert 24/7 0800 433 4364peninsula-uk.com 4 Peninsula, V ictoria P lace, M anchester, M 4 4FB
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Employment Rights Bill 2025 Free up more time for your business Peninsula’s team of qualified advisers have years of experience in providing HR support for small businesses. In essence, they help companies who don’t already have an HR team by providing insured HR advice on employment law issues like managing absences or employee conduct. Whether you’re starting a business and have to create an employment contract for the first time, or unsure how to dismiss a staff member - get unlimited support for any HR concern. It’s how 44,000 other UK business owners save time and boost their legal protection. Give us a call on0800 433 4364or scan the QR code below to book a free consultation. Scan me Speak to an expert 24/7 0800 433 4364peninsula-uk.com 5 Peninsula, V ictoria P lace, M anchester, M 4 4FB
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Speak to an expert 24/7 peninsula-uk.com Speak to an expert 24/7Peninsula, Victoria Place, Manchester, M4 4FB 0800 433 4364peninsula-uk.com 6 PBS-0212-25 Peninsula, V ictoria P lace, M anchester, M 4 4FB