Parliament returned after its summer recess this week, and yesterday, 4 September, the Employment Rights Bill (the ERB) completed its progress through the House of Lords and returned to the House of Commons for consideration of the amendments that the House of Lords had agreed. This is the last step in the process before the Bill is passed for being given Royal Assent, i.e. becoming law.

Thankfully, the reforms will not be coming into force all at the same time, thus allowing employers to take the necessary time to seek support and advice and prepare their business.

As we are in the final stages of the Bill’s passage to become law, we advise businesses to begin their preparations now. We know from the Government’s roadmap for change that there are several significant reforms expected to come into force in April 2026 and some will directly impact on budgets, and as businesses start preparing their budgets from the next financial year it is vital that these changes are taken account of.

There are around 28 reforms, and so prioritisation is key for ensuring compliance. Prioritisation will require a systematic approach to identify, analyse, and respond to reforms that may have the potential to threat the business as well as those that could bring opportunities. With these changes imminent, we set out in this article the specific reforms to focus attention on now and how you can prepare for April 2026. We also highlight the tools that are available to assist you in your business planning, and how to contact us for further guidance, information and support.

Timeline

As per the Government’s roadmap for change, the following measures are expected to take effect at Royal Assent (or soon afterwards): 

1. Repealing the Strikes (Minimum Service Levels) Act 2023  

1. Repeal the great majority of the Trade Union Act 2016 (some provisions will be repealed at a later date)  

1. Removing the 10-year ballot requirement for trade union political funds 

1. Simplifying industrial action notices and industrial action ballot notices 

1. Protections against dismissal for taking industrial action 

If your business recognises a trade union, or you believe there is a real possibility that you could be approached to become unionised, you must follow the developments in this area extremely closely and seek advice as appropriate, as these could be introduced relatively quickly when the Bill passes. 

The roadmap also lists the following reforms that are expected to come into force in April 2026: 

1. The collective redundancy protective award that is paid to employees when there has been a failure to consult with them properly during large scale redundancy programmes is set to double from a maximum of 90 days’ gross pay to 180 days’ gross pay 

1. Employees will be eligible for paternity leave and parental leave from day 1 of their employment 

1. Whistleblowing protections will be widened to include claims of sexual harassment 

1. A new enforcement body known as the ‘Fair Work Agency’ will be introduced whose objective will be to ensure employers comply to certain statutory rights (sick pay, annual leave, working time regulations).  The implementation of this enforcement body will be phased. 

1. The lower earnings limit that employees currently need to meet to receive statutory sick pay (SSP) will be removed and those earning less that the lower earnings limit, will receive either 80% of their average weekly earnings, or the flat rate of SSP, whichever is the lower. 

1. SSP will also be available from the first day of absence. 

1. Simplifying trade union recognition and balloting process 

1. Gender pay gap and menopause action plans will be introduced initially as voluntary with the expectation that these will become mandatory in 2027. 

These forthcoming changes will directly impact your employment costs and necessitate a review of HR and payroll procedures to maintain compliance. As you begin planning your budget for the next financial year, it is crucial to factor in the financial implications of these reforms. Beyond budgeting, employers should proactively review and update their current HR practices to align with the new regulations. The changes expected in April 2026 in particular, will require a full update to employment contracts, employee handbooks, and several key policies. 

Get in touch – guidance, information and support 

Do you need help in preparing your business for the changes ahead?

Our retained HR service includes full support for your employment contracts and handbook. You’ll have a dedicated HR consultant who ensures these documents stay compliant and up to date, making the necessary changes when laws or business needs evolve – including the April reforms.