I wonder how HR can help businesses prepare for ERB changes

The Employment Rights Bill (ERB) is set to introduce significant changes to UK employment law. Aimed at modernising workplace protections while preserving business flexibility, the ERB introduces a wide range of legal obligations for employers, along with a host of practical and reputational considerations.

While the ERB is still making its way through Parliament and is subject to change, its core direction is clear, especially with anticipated reforms to unfair dismissal rights, third-party harassment liability, flexible working requests, and statutory sick pay. With phased implementations expected from October 2025 through 2027, a proactive approach by HR professionals will play a critical role in implementing these changes ahead of time to ensure a smooth transition.

Below are some key considerations for HR professionals to consider in preparation for the anticipated changes.

1. Start With an Audit

Begin with a thorough review and audit of your internal procedures and practices. Consider the current state of internal operations and how these changes are likely to affect your business.

Given that the Bill will introduce new rights regarding guaranteed hours, shift assignments, and cancellation payments, a thorough audit is also an opportunity to understand how heavily your business relies on casual working patterns and what operational or financial adjustments may need to be considered in light of the reforms.

2. Update Employment Contracts, Handbooks, and Policies

HR professionals should work with legal advisors to review standard contracts and policies, ensuring that contracts, agreements, and policies are up to date, legally compliant, and fit for purpose.

3. Rethink Recruitment Processes

With early dismissals becoming more procedurally risky, it's more important than ever to hire the right person the first time around. HR should:

• Analyse retention rates for new starters in their first year.
• Review and strengthen recruitment strategies.
• Broaden advertising channels to attract suitable candidates.
• Ask more probing interview questions and verify qualifications rigorously.

4. Train Line Managers Early and Thoroughly

One of the major reforms included in the ERB is the introduction of day-one right to claim unfair dismissal, as opposed to the current two-year service requirement. This limits the flexibility employers have traditionally relied upon during probationary periods, and it is essential that managers understand the legal implications of these changes to avoid potential claims.

Managers will need robust training on:

• Fair disciplinary and capability procedures.
• Dealing with probationary concerns transparently.
• Documenting performance issues from day one.

The window for bringing most employment claims will likely increase from three to six months, which extends the risk of potential disputes. This change alone reinforces the need for early intervention, improving documentation practices and ensuring consistency in how issues are handled from the outset.

5. Review Company Culture and Dynamics

As of October 2024, employers are required to take “reasonable steps” to prevent sexual harassment. Employers who fail to comply with this duty risk a 25% uplift on a tribunal award if an employee brings a successful harassment claim. The ERB takes this further by raising the bar to “all reasonable steps,” increasing the risk of potential liability for employers.

HR should:

• Conduct organisation-wide assessments of potential harassment risk areas.
• Roll out targeted training for managers and staff.
• Ensure staff are made aware of existing procedures and policies in place.
• Strengthen grievance procedures and encourage reporting.

6. Communicate Internally and Build Awareness

HR professionals should develop a plan to create awareness at all levels of the business on the coming changes and how they may impact their roles and internal practices and procedures.

This includes:

• Creating clear, accessible guidance on new rights and processes.
• Hosting workshops or Q&A sessions for line managers.
• Building resources that are accessible to all and reviewed regularly.

Businesses that wait until the last minute will be at a disadvantage, scrambling to adjust to new standards under regulatory scrutiny and exposing their business to the risk of potential claims, reputational damage, and financial strain.

HR professionals should not mistake this delay for a grace period. The time to prepare is now.

Need Support?

Whether it’s reviewing contracts, managing individual cases, training line managers, auditing internal procedures and practices, our Employment Law Team is here to help you stay compliant and confident through every stage of reform. Call us on 023 8071 7717 or email at employment@warnergoodman.co.uk.

Why not use our handy tool to assess how the changes are likely to impact your business?

Make Work Pay Programme

To support employers through the changes, we have developed the Make Work Pay Programme, our comprehensive six-month, fixed-fee service designed to help businesses prepare for the Employment Rights Bill and its operational impact.

Learn more about our Make Work Pay Programme here.