Preparing for the Employment Rights Bill: Top 10 priorities for employers in 2025

By Tracy Madgwick

?

The Employment Rights Bill, set to take effect over the coming months, heralds a sea change in UK employment law. In this article I have highlighted the main areas of focus for charities.

Since the Bill was launched at the end of October, its impact has been lost in the concern about how employers are going to budget for, and respond to, the significant increase in National Insurance contributions from April next year. But charities ignore the Employment Rights Bill at their peril. A lot of the detail is yet to come out, but from what we do know (and it is a lot), charities must use 2025 to prepare for these extensive reforms.

Here are the top 10 areas of focus to make sure your charity is prepared for the changes ahead.

1. Review and update dismissal policies

The removal of the two-year qualifying period for unfair dismissal claims is really significant. It means employers must:

• Review dismissal policies such as redundancy policies to reflect "day one" rights for employees.
• Train managers on fair dismissal practices to reduce the risk of claims.
• Implement clearer probationary guidelines, as dismissals during the initial employment period will still require justification.

2. Strengthen onboarding and probationary processes

With unfair dismissal rights starting immediately, onboarding will be critical:

• Set explicit performance expectations during induction.
• Use robust monitoring systems to assess employee performance during the initial period.
• Create documented performance reviews to support potential dismissal decisions if necessary.

3. Implement comprehensive anti-harassment policies

Third-party harassment protections are back, and employers must:

• Develop and communicate clear anti-harassment policies that cover third-party interactions.
• Conduct regular harassment prevention training for all employees and managers.
• Perform risk assessments for roles with high exposure to third-party interactions.

4. Prepare for flexible working requests

The Bill strengthens employees' rights to request flexible working arrangements:

• Review processes for handling flexible working requests.
• Ensure managers understand the need to provide reasonable explanations for refusals.
• Evaluate operational flexibility to accommodate increased requests.

5. Adapt to zero-hour contract reforms

Significant changes are coming for zero-hour contracts, including guaranteed hours and shift notice requirements:

• Review existing zero-hour arrangements and assess regular working hours.
• Plan for guaranteed hours contracts based on employees' work patterns.
• Develop systems to ensure compliance with notice requirements for shifts and cancellations.

6. Rethink contract variations and "fire-and-rehire" practices

The end of fire-and-rehire practices means employers must:

• Engage in meaningful consultations with employees before seeking contractual changes.
• Explore alternative ways to harmonise terms and conditions without dismissals.
• Document all negotiations to show good faith efforts in the event of disputes.

7. Prepare for statutory sick pay (SSP) changes

SSP will shortly (although we don’t know precisely when) apply from day one of sickness absence, with the lower earnings threshold removed:

• Budget for increased costs due to expanded SSP eligibility.
• Update payroll systems to accommodate changes in SSP calculations.

8. Enhanced family-friendly policies

Expanded family-friendly provisions include bereavement leave and pregnancy protections:

• Think about how you might update your policies to offer bereavement leave, particularly for parents losing children under 18.
• Ensure managers are trained on enhanced pregnancy protections to avoid unfair dismissals.
• Consider additional support measures for employees during bereavement or pregnancy.

9. Stay informed and engage in consultations

Many provisions of the Employment Rights Bill will depend on further regulations and consultations:

• Monitor Government updates and industry guidance on upcoming changes.
• Participate in consultations to ensure your sector’s needs are represented. My personal view is that if enough employers make a powerful enough case, the current proposals may be less impactful – but we have to tell the Government what we think as employers.

10. Train your managers (and keep training them)

?

Some of these changes will require a significantly different approach to managing employees.

·????? It’s really important to make sure that line managers are aware of the new laws and are equipped and prepared to manage their teams in line with these new laws.

?

Conclusion

2025 is a pivotal year for employers to proactively prepare for the Employment Rights Bill. Staying ahead of these changes will not only safeguard your charity but also enhance its reputation as a fair and forward-thinking employer.

?

Tracy?Madgwick?is a seasoned HR professional who has held a number of senior HR roles in well-known charities. She currently provides HR support to smaller charities who have no in-house support,?as well as providing additional capacity for existing HR teams in larger organisations.