Wednesday, July 16, 2025

East Midlands businesses face new challenges with upcoming changes to employment rights

The government has outlined a timeline for implementing its Employment Rights Bill, which will bring several significant changes to employment law, affecting businesses in the East Midlands. Companies will need to prepare for increased administrative tasks, including updating staff contracts, managing higher costs, and addressing new paperwork requirements.

Starting in April 2026, the Bill will grant workers “day one” rights for paternity and unpaid parental leave. Statutory sick pay will be extended, with the removal of the lower earnings limit. By October 2026, businesses will no longer be able to use “fire and rehire” practices, and employers will be required to take all reasonable steps to prevent sexual harassment in the workplace.

By 2027, additional protections will be introduced for pregnant women and new mothers, including enhanced dismissal protections. Employers will also face new measures to prevent unfair dismissal from the very first day of employment. These changes will require businesses to adjust their practices and ensure compliance with the new legal landscape.

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