Employment
Becci Collins, Joanne Leach
July 2025
The Employment Rights Bill proposes significant changes to employment law and employers and HR professionals will be required to navigate complex changes over the next two years to ensure compliance with it. This will undoubtedly be a daunting time for all, but the businesses that navigate this period with the most success will be those who proactively take steps early on.
This guide explains what you should be doing and when to ensure that you, as an employer and business owner, can navigate the changes likely to be passed into law in the most effective way.
Mitigating compliance risks
- Audit and update contracts and policies
By completing an HR Audit (including a comprehensive review of all employment contracts, staff handbooks and policies) employers can ensure that the definitions and procedures contained within satisfy the new legal requirements. Particular attention should be paid to clauses and policies that affect part-time, agency, and zero-hours workers, as their rights are expected to be significantly strengthened in the Bill.
- Train line managers and HR teams
Education is key to compliance, but while there is a lot of information on the Bill out there, some sources are more reliable than others. By providing proper training to managers and HR teams by those who truly understanding the employment law changes contained within the Bill, employers can ensure that their staff receive accurate information (thus increasing the likelihood of compliance). Any training provided should go beyond the strict legal requirements and include practical scenarios, such as handling flexible working requests, conducting fair dismissals, and interactions with trade unions. As the supporting regulations are introduced, training should be reviewed and updated to ensure it reflects current legal requirements.
- Implement a compliance calendar
Creating a timeline that maps out the implementation of the Bill and details the changing requirements, necessary training, and communications to staff, will help achieve a smooth transition.
- Engage with consultation processes
As the consultation process on the Bill is ongoing, prudent employers will pay close attention to the government debates. Through keeping a keen eye on its progress, employers will be able to take advantage of any opportunity to partake in industry consultations, ensuring the needs of the sector they operate in are fully considered.
Strategic objectives for employers
- Strengthen employer brand
More than ever, employees are holding their employers accountable for how they treat their staff and any breaches of law that may occur. By publishing the proactive steps taken to ensure compliance with the Bill, employers will demonstrate that they are aware of and respect their legal obligations. Not only will this help to mitigate the risk of legal claims, but it will also help to attract high-quality employees. Employers who highlight their commitment to fairness, transparency, and employee well-being will differentiate themselves in a competitive hiring market.
- Drive operational efficiencies
The more efficient a business is, the smoother it runs and the more profit it makes. Taking the time to implement the Bill correctly can also provide an opportunity to revisit existing processes to assess their efficiency and determine whether they can be streamlined. By ensuring that standardised documentation and decision-making protocols are in place, the risk of inconsistent practices and associated complaints is reduced.
- Foster a culture of trust
Going beyond the strict legal requirements and involving affected employees in the implementation of all changes required by the Bill will help to foster a culture of trust. Open communication, for example, via surveys and focus groups, will create a positive workplace culture.
