The Employment Rights Bill is not a small tweak. It is one of the biggest shifts in UK employment law in years, and it will change how small businesses hire, manage, and exit people.
In this episode of Buzzing About HR, Kate breaks down what is actually changing, what has been softened or scrapped, and what it really means if you run a small business.
Unfair dismissal is set to become a day one right instead of requiring two years’ service. The controversial fire and rehire practice faces heavy restrictions, with potential penalties rising sharply. Redundancy rules are tightening to stop businesses avoiding consultation by spreading smaller cuts across different sites. Zero-hours workers are likely to gain rights to more predictable or guaranteed hours after regular work, and compensation for last-minute shift cancellations is on the table.
There is more. Holiday pay records must be kept for six years. Tribunal time limits are expected to double from three to six months. A new Fair Work Agency will have enforcement powers, meaning compliance is no longer just about reacting to claims.
This episode is not a legal lecture. It is a practical conversation about what small businesses need to start doing now.
Kate walks through a sensible action plan. Review your contracts. Check your probation processes. Tighten up documentation. Look at how you manage consultations. Train managers to have clearer conversations. And make sure your record keeping could stand up if challenged.
The message is simple. Do not wait until 2026 and panic. Build good habits now so the legislation feels like refinement, not a shock.
If you want to understand how the Employment Rights Bill affects your business in plain English, this episode is your starting point.
Subscribe and stay tuned for next week’s episode, where we cover neonatal leave changes coming into force in April 2025 and what employers need to have in place.
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