Employment Rights Bill: What HR Leaders Need to Know to Stay Ahead
The UK employment landscape is on the brink of its most significant transformation in decades, with the introduction of the Employment Rights Bill bringing sweeping changes. Some of these include rules regarding unfair dismissal, expanded family leave, and flexible working requirements, which will reshape how organisations attract, retain, and support talent.
In a recent Bright Horizons webinar, legal expert Caroline Prosser (Hill Dickinson) and Jennifer Liston-Smith explored what these changes mean for employers and how HR leaders can prepare now. Here are the key insights or you can watch the Day 1 Rights 2026 discussion in full here.
1. Unfair Dismissal: A Major U-Turn
The government has abandoned its original plan for day-one unfair dismissal rights, opting instead for a six-month qualifying period (down from two years). While this is a relief for employers, it still represents a significant shift.
Why it matters:
Six months is a short window. Employers will need robust probation management to avoid risk.
Action point:
Train managers to hold structured reviews and document performance. Having clear evidence will be critical if dismissal becomes necessary.
2. Day-One Rights: What’s Coming
From April 2026, paternity leave and unpaid parental leave will become day-one rights; bereavement leave will expand in 2027 to include miscarriage and loss of close relatives; and enhanced protections for pregnant employees and new parents will extend six months post-return.
Implication:
Update policies now, considering whether to enhance unpaid leave with paid options to remain competitive and support retention.
Hill Dickinson’s Employment Rights Tracker provides ongoing analysis of proposed reforms and where they sit in the legislative process.
3. Flexible Working: Raising the Bar
Employees already have a day-one right to request flexible working. From 2026, refusals must be reasonable, not just procedural. Employers will need to show evidence and engage in dialogue before rejecting requests.
Best practice:
Start embedding flexibility into recruitment conversations and train managers to handle requests thoughtfully. Document decisions and explore trial periods where possible.
4. Gender Equality & Menopause Support
By 2027, large employers (250+ staff) must publish annual Equality Action Plans, detailing steps to close gender pay gaps and support menstrual health and menopause.
Opportunity:
Use this as a platform to strengthen your employer brand and demonstrate commitment to inclusion.
5. Beyond Compliance: Why Best Practice Wins
Leading employers are already going further, offering equal parental leave, phased returns, fertility support, and enhanced compassionate leave. CIPD research shows these measures boost retention and engagement while reducing burnout.
Tip:
Make family-friendly policies visible in job ads and careers pages - they’re a powerful talent magnet.
Budget Context: What Else to Watch
The recent budget confirmed increases to the national minimum wage and introduced a cap on pension salary sacrifice. With frozen tax thresholds until 2031, expect employees to value benefits and flexibility even more. Employers should review total reward strategies now.
What HR Leaders Should Do Next
- Review policies: Align with upcoming changes and consider enhancements.
- Train managers: Equip them to handle conversations on flexible working, family leave, and well-being.
- Plan ahead: Anticipate workforce costs and update benefits strategies.
- Communicate openly: Make policies visible internally and externally to strengthen your employer brand.
The Employment Rights Bill is an opportunity to lead. Organisations that act now will not only stay ahead of legislation but also build a reputation as employers of choice.
Download our Parental Leave & Family Support Benchmark Report for a comprehensive view of how UK employers are structuring leave, pay and support; ideal for assessing whether your 2026 plans align with emerging norms.
