Important Employment Law Changes Coming Your Way

Major updates to the Employment Rights Bill were announced this week that will significantly impact how you manage your workforce.

NB This update is based on proposed amendments and timelines may change

Here's what you need to know as a business owner:

1. Non-Disclosure Agreements (NDAs) Just Got Complicated

What's changing: You can no longer use confidentiality clauses to prevent employees from speaking out about discrimination or harassment - whether in contracts or settlement agreements.

What this means for you:

• Standard NDAs in your contracts may now be legally worthless in these situations

• Employees can speak to regulators, police, media, or colleagues about workplace issues

• Trying to enforce these clauses could actually expose you to additional legal claims

• You may find it harder to settle discrimination cases confidentially

Action needed: Review all your employment contracts and settlement agreements immediately.

2. "Fire and Rehire" Practices Face New Restrictions

What's changing: The government is introducing rules that make it much harder to dismiss employees just to force them to accept worse terms and conditions.

What this means for you:

• Changes to pay, hours, holidays, and pensions will be heavily restricted

• You'll need to prove "severe financial distress" to justify these dismissals

• The process will involve intensive consultation requirements

• Standard redundancies based on location remain unaffected

• New rules now also cover outsourcing dismissals unless there's serious financial distress

Timeline: Expected implementation October 2026 (giving you time to prepare)

3. Whistleblowing Gets Teeth (If Amendments Pass)

What's changing: New protections for employees who report wrongdoing, with potential fines of up to 10% of your global turnover.

What this means for you:

• If you have 50+ staff or £10m+ turnover, you must investigate employee reports of wrongdoing

• A new Office of the Whistleblower will set minimum standards for your policies

• Retaliating against whistleblowers could become a criminal offense

• Important: These amendments are not government-backed, making them less likely to become law

Action needed: Review your whistleblowing policies and procedures now.

4. Zero-Hour Contracts: Workers Get New Rights (Government Position Softening)

What's changing: Workers can now request guaranteed hours after averaging 8+ hours per week over 26 weeks.

What this means for you:

• You don't have to agree to requests, but you must consider them properly

• Cancelling shifts with less than 48 hours' notice may trigger compensation

• The most casual arrangements (under 8 hours average) remain unaffected

• Key change: Government amendments suggest this will be a "right to request" rather than a duty to offer

Timeline: Fixed 26-week reference period proposed in amendments

5. Miscarriage Leave Extended

What's changing: Bereavement leave now covers pregnancy loss from conception (not just after 24 weeks).

What this means for you: More potential leave entitlements to manage and support employees through difficult times.

6. Small Business Protections (Proposed)

What's being proposed: Several amendments seek to protect small businesses:

• Businesses under 50 employees could be exempt from many provisions

• Trade union access rights may not apply to SMEs until April 2028

• Sick pay rebate scheme for companies with under 250 staff

• Mandatory impact assessments before extending provisions to small businesses

Status: These are opposition amendments - government support unclear

7. Key Implementation Dates to Remember

• October 2026 - Fire and rehire restrictions come into force

• October 2027 - Latest date for statutory partnership leave provisions (subject to amendment)

• April 2028 - Earliest date for trade union access rights to apply to small/medium businesses

Action deadlines:

• Within 12 months - Office of the Whistleblower must be established (if amendments pass)

• Within 60 days - SME sick pay rebate scheme regulations must be laid (if amendments pass)

• Within 6 months - Whistleblower protection regulations (if amendments pass)

The Bottom Line

These changes represent some of the most significant employment law reforms in years. Getting them wrong could be costly - both financially and reputationally.

The complexity is only increasing, and the stakes are getting higher.

Why Our Retained Clients Stay Ahead

Our retained clients don't lose sleep over changes like these. Here's why:

✓ Automatic contract reviews - We proactively audit your employment terms before problems arise
✓ Policy updates included - Your handbooks and procedures stay current with the law
✓ Direct access - Pick up the phone when you need guidance on tricky situations
✓ Training support - We help your managers understand what they can and can't do
✓ Risk management - We spot potential issues before they become expensive problems

Most importantly: You focus on running your business while we handle the legal complexity.

Ready to protect your business?

The employment law landscape is shifting faster than ever. Don't wait for a problem to find you.

Contact us today to discuss how our retained services can give you peace of mind and keep your business compliant.