The Government is rolling out major reforms to employment law designed to improve pay, job security and workplace conditions. Most updates are expected to take effect in 2026, but acting now will help you stay ahead and strengthen your business. Below is our guide to the changes, with practical advice to help you prepare.
What’s Changing?
The new Employment Rights Bill will introduce significant updates to employment law. Key changes include:
- Day-one rights: Employees will be protected against unfair dismissal and have access to parental leave from the first day of employment
- Flexible working by default: Flexible working will become the standard option where practical. While employees already have a right to request flexible working from day one, the new changes will require employers to tighten their consultation process and provide clear, reasonable explanations when refusing a request
- Ending exploitative practices: Zero-hour contracts and "fire and rehire" tactics will be banned
- Tougher anti-harassment rules: Employers will be legally responsible for preventing harassment, including incidents involving customers or clients
- Fair work agency: A new agency will oversee the enforcement of enhanced employment rights, including holiday pay, statutory sick pay and wage compliance
- Trade union legislation updates: Restrictions on trade unions will be eased to facilitate collective representation and strengthen the employee voice
- Gender pay transparency: Businesses with over 250 employees must publish action plans to close gender pay gaps
- Stronger protections for pregnant employees: Dismissal protections for pregnant women and new mothers will expand
Separate measures will also strengthen protections against race and disability discrimination. These reforms require you to adopt fairer, more inclusive workplace practices.
What does this mean for your business?
These changes will affect how you hire, manage and support employees. You must revise policies, update contracts and adopt proactive measures to comply with relevant employment law. Waiting until the deadline could create unnecessary risks and disrupt your operations. By preparing now, you can position your business as a leader in fair, inclusive employment practices. These changes present an opportunity to strengthen your workplace and build long-term success.
How to prepare
Here’s how you can get ready for the changes:
- Keep abreast of changes: Allocate HR responsibility and be ready to respond
- Review your policies: Keep contracts and HR policies under review to ensure legal compliance
- Train managers and HR teams: Help your leaders understand the changes and prepare them to implement new policies effectively as changes are confirmed
- Engage your team: Communicate openly with employees about the reforms and how they will benefit the workplace
- Seek expert advice: Consult reliable sources such as Acas for guidance
Support available from the Business Wales Accelerated Growth Programme
The Business Wales Accelerated Growth Programme can help you navigate these changes. Tailored coaching packages are available to help your business adapt smoothly. Contact your Business Wales Accelerated Growth Programme Relationship Manager today to explore how we can help your business prepare for these changes and ensure a smooth transition.