Employment Rights Bill: What’s Changed, What’s Coming, and Why Your Contracts Matter More Than Ever

Employment law is shifting again. The Employment Rights Bill follows on from the Good Work Plan and introduces some of the most significant reforms in recent years.

Some of the changes are already live, while others are due in 2025/26 — but together, they mean one thing: if your contracts, handbooks, and policies aren’t up to date, your business is at risk.

Please note that in a tribunal, the very first thing a lawyer or judge will ask to see is the employment contract. If that contract is wrong, outdated, or non-compliant, the claimant already has an advantage.

✅ Changes Already in Force

• Day-one right to request flexible working

• Enhanced family leave protections

• Neonatal leave and pay (Jack’s Law extension)

• Carer’s leave entitlement

• Changes to holiday pay calculations for irregular and part-year workers

  
  

🔜 Changes Still to Come in 2025

• Extension of tribunal claim time limits to include:

  • Unfair dismissal

  • Discrimination claims

• More predictable working pattern rights for those on variable contracts

• Strengthened enforcement powers for regulators around holiday pay and sick pay compliance

  
  

⚖️ Why This Matters to Business Owners

• Tribunal risk is rising — employees now have longer to bring unfair dismissal and discrimination claims.

• First focus = contracts — if your contract wording isn’t watertight, many claims are awarded in favour of the employee before the details are even considered.

• Expensive claims — discrimination and unfair dismissal cases can run into thousands in compensation, plus legal costs and lost time.

• Reputation damage — news of claims spreads fast, especially locally.

  
  

The Missed Lesson of the Good Work Plan

When the Good Work Plan was introduced, many SMEs didn’t act. They carried on with old contracts and policies, leaving themselves exposed.

The Employment Rights Bill is another major reform — and if you don’t act this time, the risks are even greater.

How HR Matters Can Help

At HR Matters, we support business owners and directors directly. We cut through jargon, keep you compliant, and protect your business from the risks of outdated documents.

That’s why we’re offering a FREE Health Check | HR Matters

We will:✅ Review your contracts, handbooks, and policies against the Employment Rights Bill.✅ Highlight risks before they turn into claims.✅ Provide practical, no-nonsense advice you can implement immediately.

Call to Action:📞 Call us today on 01733 667030 or visit 🌐 www.hr-m.co.uk to book your FREE Health Check | HR Matters

Don’t wait for the tribunal letter to arrive. Be proactive, update your contracts, and protect your business. With HR Matters, you’ll be ready.