Peter Etherington
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Employment Update for Small Businesses
July 2025

Dear Subscriber

The Government has published what it calls its Roadmap for Delivering Change. This sets out the timetable it is aiming to follow to roll out the provisions of the Employment Rights Bill. This is a hugely significant piece of legislation for employers and the Government was very quick off the mark after it was elected to produce the initial Bill. It is quite surprising, therefore, that some of the biggest changes won’t take effect until some time in 2027. Please read on for more detail.
Please contact me if you would like to find out a bit more about any of the subjects raised in this update or if you need any help or advice.

Please forward this email to any of your contacts who might find it of benefit.

Regards
Peter Etherington
Tel: 01664 668164

www.etherington.co.uk

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Peter Etherington
Employment Rights Bill
Timetable for implementation
I have previously reported some details of the Employment Rights Bill, which is going to have a significant impact on employment law. Government consultations will commence this summer and will continue on a staggered basis through until early 2026. This will give you and other stakeholders the chance to comment on proposals.

The anticipated timetable for the new measures to take effect under the Bill (focusing on those that are most relevant to smaller employers) is:

April 2026

  • Statutory Sick Pay – removing the Lower Earnings Limit and waiting period
  • Making Paternity Leave and unpaid Parental Leave entitlements from the first day of employment (currently an employee needs 26 weeks’ service and one year’s service, respectively)

October 2026

  • Restricting the ability for employers to “fire and rehire” (i.e. to make changes en masse to contractual terms)
  • Introducing an obligation on employers not to permit the harassment of their staff by third parties (e.g. customers, suppliers, etc.)
  • Increasing the time limit to lodge a tribunal claim from 3 to 6 months

2027 (Whether in April or October has not yet been stated)

  • Removing the requirement for an employee to have two years’ service to be able to claim unfair dismissal, making it a right from day one of employment (This is the big one!)
  • Introducing a legal right to bereavement leave
  • Introducing new protections against dismissal for pregnant women, mothers on maternity leave, and mothers who return to work for a six-month period after they return to work
  • Introducing the requirement for employers to explain the grounds on which they’ve denied a flexible working request and adding the requirement that a rejection of a request be reasonable

We still await a lot of detail in relation to these changes, particularly with respect to the day one right to unfair dismissal. The Government has indicated that there will be some sort of lighter touch approach during probationary periods of up to 9 months’ service. That is one of the measures that will be part of the consultation process, so we can anticipate that will be firmed up during 2026.

National Minimum and Living Wage
The current National Living Wage and National Minimum Wage rates are:

  • £12.21 per hour for workers aged 21 and over
  • £10.00 per hour for workers aged 18 to 20
  • £7.55 per hour for workers aged 16 and 17; and for apprentices under 19 and those over 19 in their first year*

*N.B. Apprentices over 19 and who have completed at least one year are entitled to the appropriate rate for their age.

www.etherington.co.uk