The Employment Rights Bill is making its way through Parliament, and while everyone’s talking about “day-one unfair dismissal rights,” most businesses are missing the bigger picture.
This isn’t just about one change – it’s a fundamental shift in how we’ll need to manage people. And the smart money is on getting ready now, not scrambling when it’s too late.
The countdown has already begun
Here’s what nobody’s telling you: the countdown has already started!
If you hire someone in January 2026, you’ll likely only have 18 months before these new rights kick in. The comfortable “two-year buffer” you’ve been relying on? It’s disappearing faster than you think.
But here’s the thing – this doesn’t have to be the disaster everyone’s predicting. If you get your house in order now, you’ll actually come out stronger.
Why most businesses will struggle (and how you can prevent yourself from struggling, too)
Most employers are panicking about day-one unfair dismissal rights because they’ve been using the first two years as a safety net for poor hiring and management decisions.
“It’s okay if they don’t work out – we’ve got two years to get rid of them.”
Sound familiar?
The businesses that thrive after these changes will be the ones who were already doing things properly. And if you’re not there yet? Now’s your chance to catch up.
Here’s what you need to do to prepare for the Employment Rights Bill; not just in terms of probation, but all the other changes that’ll come with it!
Your 5-Point action plan
1. Revolutionise your sick pay strategy
What’s changing: Statutory sick pay from day one (currently starts on day four).
Why it matters: This will likely increase sickness absence so your contract needs to be up to date. I’m not being cynical – I’m being realistic. When people get paid from day one, some will absolutely phone in sick with a hangover.
Your action plan:
- Contract check: If yours specify “statutory sick pay from day four,” you need updates. If they say “subject to the rules and eligibility of the scheme,” you’re already covered.
- Process overhaul: Return-to-work meetings after every single absence. No exceptions, no shortcuts.
- Block holiday conversions: Never let sickness be converted to annual leave. It sets a terrible precedent.
- Implement trigger points: When someone hits a certain number of sick days, it triggers a formal review.
- Invest in health insurance: Low-cost benefit that genuinely improves attendance and shows you care about wellbeing.
The disability caveat: If frequent absence is disability-related, you need occupational health referrals and reasonable adjustments – not jumping straight to disciplinary action.
2. Set your managers up for success
I recently ran a LinkedIn poll asking what impacts workplace wellbeing most. The winner by a landslide? Manager capability.
Not flexible working. Not employee assistance programs. Manager capability.
Your managers are either your biggest asset or your biggest liability. There’s no middle ground.
The brutal truth: Good managers prevent tribunal claims. Bad managers create them.
What your managers need to master:
- Difficult conversations – Before small problems become big lawsuits
- Escalation protocols – Knowing when to involve HR (and when not to)
- Employment law basics – Not everything, just enough to avoid catastrophic mistakes
- Early warning systems – Spotting performance issues before they spiral
- Documentation skills – Because “I had a conversation with them” won’t protect you in court
The cost of getting this wrong: Dismissing for capability takes a minimum of four months. Discrimination claims are uncapped and can run into hundreds of thousands. Still think manager training is expensive? Think again.
And trust me, I know. I’ve sat with founders starring down the barrel of a trip to the tribunal and, after reviewing everything they had and did, my response? “Hope you’ve got a spare £30k.”
Don’t get caught out. Train your managers!
3. Build a recruitment and onboarding machine
You can’t rely on “we’ll figure out if they’re any good over the next two years” anymore. Your recruitment needs to be surgical, and your onboarding needs to be bulletproof.
Recruitment reality check:
- Are you just checking they can do the job, or are you checking they’re the right cultural fit?
- Are your interview questions actually revealing anything useful?
- Do you need to completely overhaul your recruitment process?
Onboarding essentials:
- What does your current onboarding actually look like? (And “here’s your laptop and login details” doesn’t count)
- Are your managers equipped to train people? Being brilliant at your job doesn’t automatically make you brilliant at training others.
- Do you need “train the trainer” support for your managers?
Probation perfection: This is where everything gets decided. Outside of probation, if someone’s underperforming, you’re looking at a minimum four-month capability process.
- Do people currently pass probation by default because the date goes past?
- Are you having meaningful reviews throughout the probation period?
- Do people “see the bus coming” if they’re not meeting expectations?
The golden rule: Get it right in probation, or prepare for expensive, lengthy procedures later.
4. Master the art of flexible working
What’s changing: Currently, employees can request flexible working twice a year, and you can refuse for one of eight business reasons. Soon, you’ll need to demonstrate why it isn’t reasonable to grant their request.
The strategic question: Are you still stuck in “9-5, Monday to Friday, no wiggle room” thinking?
Your preparation:
- Audit your current stance on flexible working
- Identify where you could offer more flexibility without operational issues
- Develop clear criteria for what makes a flexible working request unreasonable for your business
- Start offering reasonable flexibility now, before you’re forced to justify why you won’t
Pro tip: The businesses that get ahead of this curve will attract better talent and have happier, more productive teams. It’s not just about compliance – it’s about competitive advantage.
5. Create an unbreachable harassment prevention system
What’s changing: NDAs for harassment and discrimination cases are being banned, plus strengthened duties around third-party harassment prevention.
Why this matters: Currently, if someone brings a harassment claim, you can often settle with the guarantee of confidentiality. Soon, that’ll be unlawful.
The ripple effect: Employers will be more likely to say “see you in court” because there’s no settlement incentive. You need to prevent problems, not just manage them after they happen.
Your bulletproof system:
- Universal training: Not just managers – everyone needs harassment and discrimination training
- Clear policies: Written, communicated, and actually followed
- Risk assessments: Identify where harassment could occur and mitigate it
- Robust reporting systems: Multiple ways for people to raise concerns
- Swift action protocols: When issues arise, your response needs to be immediate and thorough
Remember: If someone in your team harasses a colleague, you’re liable unless you can prove you took “all reasonable steps” to prevent it.
The strategic advantage for you and your business
Here’s what the doom-and-gloom headlines are missing: this is actually an opportunity.
While your competitors are panicking about new regulations, you can be building the kind of workplace that attracts and retains the best people.
Think about it:
- Robust sick pay policies show you care about employee wellbeing
- Well-trained managers create better employee experiences
- Excellent recruitment and onboarding sets people up for success
- Flexible working options attract top talent
- Strong anti-harassment policies create psychological safety
These aren’t just compliance measures – they’re competitive advantages.
Your essential next steps
- Audit where you are now – Honestly assess your current systems against the five areas above
- Prioritise by risk – What’s most likely to cause you problems if you don’t fix it?
- Create a timeline – You’ve got time to do this properly, but not indefinitely
- Invest in your managers – This is where everything else either succeeds or fails
- Get expert help – Whether it’s training, policy reviews, or strategic planning, don’t try to wing it
The choice is yours
The Employment Rights Bill isn’t something happening to you – it’s something you can prepare for and even benefit from.
The businesses that will struggle are the ones treating this as a last-minute compliance exercise. The businesses that will thrive are the ones using this as an opportunity to build better systems, better managers, and better workplaces.
The choice is yours. But the clock is already ticking.
Want help getting any of this sorted? From manager training to full HR MOTs, I work with businesses to turn employment law changes from threats into opportunities. Drop me a line and let’s chat about what makes sense for your business.
Because prevention isn’t just better than cure – it’s profitable.