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Employment Rights Bill: What the Upcoming Changes Mean for You

September 22, 2025

Big news for workers and employers alike. The Department for Business and Trade (DBT) has just released the Implementation Roadmap for the Employment Rights Bill, a clear timeline for a whole package of new and improved workers’ rights.

As someone deeply involved in payroll and employee support, I wanted to share what this means, especially for Statutory Sick Pay (SSP), and why now is the time to prepare.

What’s Changing and When?

The roadmap lays out a phased approach, with some big shifts kicking off in April 2026 and continuing through 2027. Here are a few highlights that matter for us:

  • From April 2026:
    • The maximum period for collective redundancy protective awards will double, offering stronger financial protection for workers facing mass layoffs.
    • New ‘day one’ rights for paternity leave and unpaid parental leave, meaning support starts right from the first day on the job.
    • Whistleblowing protections will be beefed up, helping employees speak up safely.
    • A Fair Work Agency will be set up to promote fairness and enforce labour rights.
    • And crucially for many employees, Statutory Sick Pay will change: the lower earnings limit and waiting period will be removed. This means more workers can get paid when they’re ill, easing the financial burden of taking time off to recover.
  • Later in 2026 and beyond:
    • Fire-and-rehire practices will be ended.
    • Tipping laws will be strengthened for fairer distribution.
    • Employers will have clearer duties to prevent and address sexual harassment, including from third parties.
    • More protections and rights will be rolled out for trade union members.
    • From 2027, new measures will support gender equality, flexible working, enhanced dismissal protections for pregnant women and new mothers, bereavement leave, and protections against unfair dismissal from day one of employment.

Why Does This Matter to Employers and Payroll Teams?

These changes are about fairness and security for workers, but they also impact how businesses manage payroll, HR, and employee relations. Removing the lower earnings limit for SSP, for example, means employers will need to be ready to process sick pay for more people, including those on lower incomes or with irregular hours.

At Hentons, we’re already reviewing these timelines to help our clients plan ahead and ensure smooth transitions once the new rules come into effect. Planning now means fewer headaches later, and better support for your people when they need it most.

What Should You Do Now?

  • Keep an eye on the government’s official guidance, which will be published before each stage rolls out.
  • Review your current policies around sick pay, parental leave, and redundancy to understand where updates might be needed.
  • Talk to your payroll and HR teams early to discuss the operational impacts.
  • If you’re unsure how these changes will affect your business, reach out, we’re here to help.

Final Thoughts

We understand the potential impact these changes may have on employers, including the financial and operational challenges they might bring. This roadmap represents a meaningful step forward in strengthening workplace rights promoting fairness, support, and inclusivity across all working environments.

As we prepare for these changes together, it’s important to approach them with both compliance and compassion in mind. If you feel unprepared or have concerns about what’s ahead, please don’t hesitate to get in touch. We’re here to help you navigate the transition smoothly.

Jessica Haunch

Jessica is our Payroll Director who has built up over 12 years of experience within the Payroll industry.  She leads our payroll department which is a national function that is strategically placed across all of our offices.

Jessica is responsible for ensuring her team works efficiently and accurately while maintaining compliance with all relevant regulations.

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