The Employment Rights Bill is almost here: What employers need to know

The long-awaited Employment Rights Bill is now reaching its final stages in Parliament, with royal assent expected in late September or October.

This legislation represents one of the most significant overhauls of workplace rights in recent history, and employers should begin preparing now for the changes it will bring.

What are the key changes for employers

The Bill has been hotly debated, sent back and forth between the Lords and Commons, and is set to bring some significant changes including:

Unfair dismissal

The two-year qualifying period will be scrapped, making unfair dismissal protection a day-one right.

A statutory initial period of employment (probationary period) will apply, offering a more flexible framework for dismissals during this stage relating to capability, conduct, statutory restriction or some other substantial reason relating to the employee. It is thought that this will not apply to redundancy dismissals.

The details of the process that will be required during the initial period of employment have yet to be published, however it is expected that the initial period of employment will likely last around nine months as the government has already said its preference will be nine months. A consultation on this process is expected to be launched this, Autumn.

Employers will need to be preparing to update contracts to reflect these terms and ensure managers are trained to apply them fairly.

Harassment at work

Employers will be required to take all reasonable steps to prevent sexual harassment.

The new rules extend protections to whistleblowers and cover third-party harassment, while confidentiality clauses restricting employees from discussing harassment or discrimination will be banned.

Policies, contracts and risk assessments must be updated to ensure compliance. Employers will also need to carefully consider the content of any settlement agreements.

Flexible working

Employees will retain the right to request flexible working, but refusals on the existing permitted grounds must now be reasonable, explained and subject to consultation.

Managers will need training, and contracts should be reviewed to reduce the risk of tribunal claims.

Family rights

Paternity and unpaid parental leave will become available from day one. Although it should be noted that the government has not committed to making statutory paternity pay a day one right.

Dismissal during pregnancy, parental leave or within six months of returning to work will be unlawful except in limited circumstances. Regulations are awaited to define what these specific circumstances will be. A consultation is due to start in Autumn and it is expected these measures will come into force in 2027.

A new right to bereavement leave wider than the current parental bereavement leave, including for pregnancy loss, will also be introduced. Employers should review their handbooks and processes in line with these new rights.

“Fire and rehire”

The practice of dismissing staff to impose certain new terms will be classed as automatically unfair, except in circumstances of financial difficulty likely to affect the ability to carry on the business as a going concern.

There are also circumstances where dismissal to impose new terms which do not constitute a restricted variation will amount to unfair dismissal.

This change makes it vital for employers to build flexibility into contracts and consider any necessary changes carefully.

Collective redundancies

Thresholds will apply across the whole organisation, not just one site, as well as the trigger of 20 employees at one site. At present, it is not clear what the threshold number will be. Breaches of consultation duties could result in penalties of up to 180 days’ pay per employee which is double the current penalty.
Employers should review redundancy planning to ensure compliance.

Equality reporting

Large employers (250+ employees) will face new reporting obligations relating to the requirement to publish equality action plans showing what steps they are taking related to gender equality. These matters will include addressing the gender pay gap and supporting employees going through menopause. Regulations may make provision for the form and manner in which the plans are required to the published and the content of the plans.

The proposed Equality (Race and Disability) Bill includes a requirement for disability and ethnicity pay gap reporting but it is expected to be subject to significant consultation and will likely progress more slowly that the Employment Rights Bill.

Firms should prepare systems to gather and publish this data.

Zero-hours and irregular workers

Workers who consistently exceed their contracted hours for zero hours and low hours workers over a specified reference period, currently expected to be 12 weeks must be offered a contract reflecting those hours. This will apply for each reference period so it will keep needing to be offered. This places a significant burden on employers. there will be a consultation on what should amount to low hours for these purposes.

They will also gain rights to notice of shifts and compensation for cancellations. It is not clear currently what amount of notice or amount of compensation will be required.

Employers reliant on irregular hours contracts will need to adapt their rostering systems.

Statutory Sick Pay

Statutory sick pay will become a day-one right, with no earnings threshold. There will be a new system to provide fair earnings replacement for people earning below the current rate of SSP.

Preparing your business

The Bill has been met with concern across industry, with many employers highlighting the additional costs and administrative demands it will create. While some amendments have softened its impact, the reforms remain substantial.

If you would like tailored advice on how the Employment Rights Bill could affect your organisation, please contact our team.

Palmers Solicitors is pleased to announce the promotion of two of its lawyers, Kristie Willis and Jonathan Hol, to the role of Associate Solicitor, further strengthening the firm’s expertise in employment and commercial law.

Kristie Willis, who has more than seven years’ experience in employment law, has developed a strong track record in Employment Tribunal claims involving unfair dismissal and discrimination.

Since joining Palmers, she has played a key role in expanding the firm’s employment services for businesses, including hosting a recent webinar on the impact of AI in the workplace.

Jonathan Hol began his legal career in South Africa in 2008 before qualifying in the UK and now focuses on company commercial matters and contracts.

He has been instrumental in developing Palmers’ commercial services, advising businesses on everything from contracts to corporate governance.
Palmers has a long history of nurturing talent within its team to ensure continuity and high-quality service for clients.

Gina Newman, Chief Operations Officer at Palmers Solicitors, added:
“These promotions reflect the outstanding contributions Kristie and Jonathan have made to our clients and our firm.

“Their expertise and leadership will be key to the ongoing expansion of our commercial and employment services.”

Dealing with an estate is rarely straightforward, but the process becomes even more complex when assets are held in more than one country.

International property, overseas investments or foreign bank accounts are all subject to different legal and tax rules, and this can create delays, disputes and unexpected costs if not handled carefully.

Which laws apply?

Each country has its own probate process. Some will not recognise a Grant of Probate from England and Wales without further validation, and in many cases local lawyers or notaries must be appointed. Understanding these requirements early on helps avoid unnecessary delays.

Are there multiple Wills?

It is common for people with international holdings to have more than one Will – one covering their UK estate and another for assets abroad.

If properly drafted, this can simplify administration. However, if the documents are not well coordinated, they may contradict each other or leave some assets unaccounted for.

Do succession rules restrict freedom?

Unlike in England and Wales, many countries apply “forced heirship” laws which require certain family members to inherit fixed shares of the estate. These rules can override the terms of an English Will in respect of local assets.

Where are the tax liabilities?

Inheritance Tax will usually apply in the UK if the deceased was domiciled here, but other countries may also impose estate or succession taxes.

While some countries have double taxation treaties with the UK, many do not. Early advice is vital to prevent unnecessary tax exposure.

Will probate be recognised?

Some jurisdictions allow a UK Grant of Probate to be “resealed” locally, speeding up the process. Others require a full local probate application, which may involve translations, court procedures and extra costs.

What about foreign currency?

Exchange rate fluctuations and transfer charges can reduce the value of overseas assets once they are converted and repatriated. Careful planning can help preserve value for beneficiaries.

Expert guidance for cross-border estates

International estates bring added layers of legal and tax complexity. Our specialist private client team at Palmers is experienced in managing these challenges and, as a firm licensed to deal with the probate process, we can support executors and families with clear, practical advice.

If you or a loved one hold assets abroad, it is important to plan ahead to protect your estate and your beneficiaries.

Palmers Solicitors is delighted to announce the promotion of Kristie Willis to Associate Solicitor within our employment law team.

Kristie has more than seven years’ experience advising on employment law matters and has built a strong reputation for supporting employees with issues such as unfair dismissal, workplace discrimination and Employment Tribunal claims.

Since joining Palmers, Kristie has been central to growing our employment law services, including leading a recent webinar on how artificial intelligence is changing the workplace.

Kristie said: “I’m thrilled to be stepping into this new role. Employment law changes quickly, and I am passionate about helping people understand their rights and feel supported when challenges arise at work.”

Her promotion reflects Palmers’ continued commitment to providing expert, approachable advice for individuals facing workplace issues.

If you are dealing with a difficult situation at work and need advice, our employment law team is here to help.

We’ve been proud to serve the people and businesses of Essex since 1983. Over the last 40 years, we’ve grown steadily and built a reputation as a trusted provider of legal advice across the county.

That is why we are pleased to announce the opening of our new office in Chelmsford.

Chief Development Officer, Ricky Valks, said: “We’ve talked about Chelmsford for many years. It’s the city-centre, it’s vibrant, and it has one of the fastest-growing business communities in the region. Being able to finally put down roots here is a proud moment for us.

“This new office gives us the chance to bring our reliable services to a wider community.”

Continuing our journey in Essex

Earlier this year, we picked up the keys to our new city-centre premises and set to work creating a space that feels both professional and approachable.

We know people don’t usually come to a solicitor at the easiest moments in life, so it mattered to us that our new office feels welcoming from the moment you step inside.

Chelmsford is now our sixth office, joining Thurrock, Rayleigh, South Woodham Ferrers and our two Basildon offices.

We’ll be offering the same wide range of services, from family law and conveyancing through to wills and probate, employment and commercial law.

“Many of our team already live in and around Chelmsford, so in a way this feels like we’re bringing the firm home,” said Ricky.

“Our reputation has been built on being accessible, picking up the phone, meeting face-to-face and speaking plainly. Having a presence in Chelmsford lets us do that for even more people, right on their doorstep.”

Looking to the future

With our new office open, we’re looking forward to welcoming clients old and new and playing a bigger part in the life of this city.

We’re proud of our history in Essex, and this next chapter in Chelmsford is just the start of more exciting things to come.