Employment Rights Bill: Business Owners - Bee Prepared | Part 2

With big employment changes looking likely to take place at the start of 2026, here is part 2 of my Employment Rights Bill lowdown, and how it could effect your business.

Getting ahead now will make all the difference when it comes to staying compliant and minimising any disruption to your business operation. At more than 150 pages and containing 28 employment measures, the scope of the new Employment Rights Bill should not be underestimated but don’t worry I’ve tried to keep it simple.

Let me break down some of the key updates.

Day-One Employment Rights

One of the biggest updates for employers, is that employees will soon be able to claim unfair dismissal from day one on the job, scrapping the current two-year qualifying period. For my construction industry clients, where projects can be short-term and turnover high, this might sound tricky – but with the right preparation, it can be managed smoothly.

You’ll still be able to use probationary periods, but the new rules will call for a fair and transparent process around dismissals.

Employers without a strong, fit for purpose disciplinary policy - make this a priority for 2025!

All employers should also begin reviewing how they manage probation, from contractual terms to induction processes. This change means putting more focus on effective hiring, strong onboarding programs, regular performance check-ins, and having the right documentation at every stage.

New ‘Worker’ Status

Another key proposal that will be very relevant for a lot of my network, is combining the categories of ‘employee’ and ‘worker’ into one ‘worker’ status, while keeping a clear separation from the genuinely self-employed.

This aims to address any grey areas around employment status, particularly in sectors like construction where misclassification can be a concern. Employment status would be based on the actual relationship between you and your team members, not just what’s written in a contract.

Statutory Sick Pay

• Removal of the waiting period for Statutory Sick Pay Entitlement

• Removal of the lower earnings limit for Statutory Sick Pay

Zero-Hours Contracts

I spoke briefly on this in part 1, but to dig deeper - the bill as the plans to restrict zero-hours contracts and require regular hours contracts based on a 12-week reference period. New rules could also require advance notice of shift changes and even compensation for last-minute schedule shifts. Now’s a good time to think about how to give your team reasonable notice when project changes come up.

These are just a few of the changes on the horizon, and more details will continue to emerge. For now, preparing for what you can is the best move. The earlier you start, the smoother it will be when the time comes.

If you’re looking for guidance on how to handle these changes, in need of a 360 business review of your existing employment compliance, or just want to talk through what’s coming, feel free to reach out.

Bee Prepared! 🐝

Rachel

beeconnectedhr.com