Employment Rights Bill 2026: changes for trade employers

Overview of the Employment Rights Bill 2026

The Employment Rights Bill of 2026 is poised to be the most significant overhaul of employment law in decades. For tradespeople employing staff, understanding these changes is essential. The bill introduces several updates, intending to strengthen employee protections, from dismissals to flexible working rights.

Day-one unfair dismissal rights

Starting April 2026, employees can claim unfair dismissal rights from the first day of employment, a drastic change from the current two-year requirement. This means careful recruiting and a structured onboarding process will be vital.

End of "fire and rehire"

The bill restricts the 'fire and rehire' practice, impacting how tradespeople can adjust workforce needs through zero-hours contracts. Employees on these contracts will gain the right to guaranteed hours after 12 weeks of consistent work.

Zero-hours workers' rights

Workers regularly working the same hours will soon have the right to request a regular contract. This shift aims to provide more stability to zero-hours workers and will require employers to anticipate and plan for contractual changes.

Flexible working requests

Following initial changes in April 2024, the bill further entrenches the right of employees to request flexible working from the first day of employment. Tradespeople must prepare for and manage these requests accordingly.

Enhanced statutory sick pay

The introduction of statutory sick pay from day one rather than day four is another notable change. Tradespeople will need to budget for the possibility of immediate sick pay claims.

Trade union changes

While trade union changes may seem less relevant to small trade firms, understanding that it's easier for workers to unionise is still important. This could affect workplace negotiations and dynamics.

Practical implications for small trade firms

These legal adjustments mean increased hiring risks. Having clear, detailed contracts from day one becomes crucial. Businesses will need robust HR processes to avoid legal pitfalls.

New probationary period proposal

A statutory probationary period of nine months is proposed, with a lighter dismissal process during this time. This change allows employers more flexibility in assessing new hires but requires careful documentation.

Recommended actions

• Ensure proper employment contracts are in place from the start.
• Create clear job descriptions and communicate expectations.
• Implement regular performance reviews to document progress and issues.

For more on hiring, see our guide on hiring your first employee.

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For more details on the Employment Rights Bill, visit gov.uk's page on the Employment Rights Bill.

FAQs

• What is the Employment Rights Bill 2026? The bill introduces major reforms in employment law, focusing on improved rights for employees from day one.
• How does the bill affect zero-hours contracts? It restricts 'fire and rehire' practices and grants guaranteed hours after 12 weeks of consistent work.
• What changes are there to statutory sick pay? Statutory sick pay now commences from day one of illness, not the fourth day.
• What is the new probationary period under the bill? A new nine-month probationary period is proposed, allowing for a simpler dismissal process.