At Thrive, we’ve always been champions of progressive workplace change — ensuring that equity and inclusion are at the heart of organisational culture, in addition to legal compliance. The recent amendments to the Employment Rights Bill mark a pivotal shift in how the UK will seek to protect workers. These reforms are bold, overdue in many areas, and a clear sign that the world of work is evolving.
We’ve broken down the most important changes, what they mean for employers, and why this matters — not just legally, but culturally.
A ban on ‘Fire and Rehire’
Businesses will be prevented from dismissing employees in order to rehire them on less favourable terms.
While this is a step towards preventing employers from forcing through changes to the detriment of their employees without a clear business rationale, this will also affect any businesses who may be seeking to change terms in order to run more efficiently and, as a result, protect jobs.
What can employers do? One thing that employers who are looking to consult with their staff about proposed changes to their terms of employment can do to protect themselves is to take appropriate advice regarding their business case and proposed process in order to try and mitigate any risks.
Statutory Sick Pay (SSP) – More Inclusive and Immediate
Significant changes to Statutory Sick Pay are expected in April 2026:
- No more waiting days – employees get paid from day one of sickness.
- More inclusive eligibility – no more minimum earnings threshold. Workers earning less than the Lower Earnings Limit will receive 80% of their earnings (or the SSP rate, whichever is lower).
These changes are a big win for equity — especially for part-time and low-paid workers who have previously been excluded. However, this will also mean that employers need to reassess their sick leave policies and budgets and could have a significant financial impact on businesses, regardless of their size.
Things to thing about: Are you confident that your sickness absence policies and procedures are up to date and applied consistently?
Zero-Hours Contracts Under the Microscope
If you rely on zero-hours contracts, it’s time to audit your business requirements and the hours of work being carried out by zero hours workers.
Once the Employment Rights Bill comes into force, employers be required to offer guaranteed hours to workers who’ve been consistently working regular patterns. There’s also a new duty to give fair notice for shift changes — and to compensate staff when shifts are cancelled last minute.
Things to think about: By auditing your working practices now and how they meet your future business needs and having clear lines of communication with your workforce, this can help to navigate this change in a positive way and retain any required flexibility.
Family and Bereavement Leave: Compassion in Action
New leave entitlements are proposed, including:
- Two weeks’ leave for parents grieving the loss of a child, including those who experience a miscarriage before 24 weeks of pregnancy
- One week for other close family or dependents
We know grief doesn’t fit into tidy timelines. These reforms are a step toward more compassionate workplaces — but we’d always encourage employers to go beyond the minimum. Culture is built in these moments.
Trade Union Rights and Industrial Action
For those navigating employee relations or unionised environments, here’s what is due to change:
- Shorter notice for industrial action (down from 14 to 10 days)
- Action mandates extended to 12 months
- Introduction of e-balloting and digital access for unions
Whether you welcome or worry about these changes, the message is clear: unions are evolving. Employers need to ensure their approach to engagement and conflict resolution is collaborative, not combative.
A New Fair Work Agency
A Fair Work Agency is proposed which will oversee enforcement of minimum wage compliance, holiday pay, statutory sick pay enforcement, and protections from exploitation. In addition to this, they will have the power to bring claims on behalf of workers.
Their powers will extend to serving an underpayment notice on an employer, together with a penalty of 200% of the unpaid sum, payable to the Secretary of State.
What is the impact? For employers, this adds another layer of accountability. It’s not enough to have policies on paper — they must be actively implemented, reviewed, and lived out day-to-day. Are you confident that your records and reporting procedures are robust?
So, What Should Employers Do Now?
These changes aren’t just about compliance — they’re a call to action. A chance to redesign your workplace culture around fairness, flexibility, and inclusion.
Here’s your Thrive to-do list:
- Review contracts, handbooks, and policies
- Train your managers – especially around fair dismissal, shift management, and sickness absence
- Embrace early intervention – don’t wait for problems to escalate
- Be people focused – always come back to your values and listen to your team
Do you know how these changes will impact your business?
We will follow these changes closely and consider in more detail the implications for both employees and employers, sharing our insights with you as we go.
We know this is a big update but there are a lot of changes likely to come, and some of them very quickly, so don’t forget to sign up to our newsletter or you can book a call with one of our team to help you plan how to navigate these changes effectively on [email protected].
We will also be sharing lots of updates on our socials so click here to connect:
Thrive Law on Instagram | LinkedIn | Twitter (X) | Facebook
Disclaimer
Please note this blog is for reference purposes only and is only accurate at which the date it was published. It does not constitute legal advice and should not be relied upon as such. Specific Legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any actions. Please contact us if you have any questions on [email protected].
