Employment Rights Act reforms: practical steps employers should take now

While many of the reforms will not take effect immediately, employers should identify the changes most likely to have a significant operational impact and begin preparing now.

• Read more: what the Employment Rights Act means for your business

In many cases, organisations that act early will be better placed to manage legal risk, avoid disruption and adapt workforce practices before the new requirements come into force.

Take a fresh look at employee and trade union relations

The government’s reforms are intended to strengthen trade union rights, including through new workplace access arrangements. As a result, organisations that have historically had limited interaction with trade unions may find themselves operating in a changing industrial relations environment over the coming years.

Employers will benefit from reviewing whether existing employee engagement mechanisms remain effective.

Internal communication channels, employee forums and consultation arrangements are likely to become increasingly important in helping employers maintain constructive workforce relations and respond to emerging concerns at any early stage.

Employers should begin preparing for physical and digital trade union access requests ahead of the first changes taking effect on 30 October.

Preparing for a shorter unfair dismissal qualifying period

The planned reduction in the qualifying period for ordinary unfair dismissal claims to six months is expected to have significant implications for workforce management and dismissal processes.

For many employers, this will increase the importance of effective probation management. Decisions about performance concerns, conduct issues or suitability for a role may need to be identified and addressed more quickly than under current arrangements.

Businesses contemplating dismissal in the short to medium term may also need to consider whether existing timelines remain appropriate. Employers should understand how contractual notice provisions interact with statutory notice requirements, as these could affect whether a dismissal takes place before an employee acquires additional employment protections.

Reviewing probation clauses, performance review procedures and internal decision-making processes now may help employers reduce future litigation risk.

A renewed focus on workplace culture and harassment prevention

The reforms also reinforce a broader policy objective of preventing workplace harassment and promoting more inclusive working environments.

The regulatory expectation placed on employers is increasingly shifting towards prevention rather than response. Organisations will therefore need to demonstrate not only that policies and training exist, but that they are effective in identifying and addressing risks before incidents occur.

This requires employers to move beyond periodic compliance exercises and examine whether their reporting mechanisms, investigation procedures and management training would withstand scrutiny in the event of a complaint.

Organisations should consider conducting harassment risk assessments, identifying higher-risk teams or work environments and reviewing escalation processes. Visible engagement from senior leadership is also an important factor in demonstrating a proactive approach to workplace culture.

Reviewing contractual flexibility

Employers should review employment contracts before organisational change becomes necessary.

Proposed restrictions on so-called “fire and rehire” practices are expected to make contractual change exercises more challenging and potentially more contentious. Employers with clear and effective contractual flexibility provisions may be better positioned to implement future changes without resorting to more disruptive processes.

A review of contractual terms can help employers understand where flexibility already exists and where future workforce changes could encounter legal or practical obstacles.

Particular attention should be given to variation and flexibility clauses, although their effectiveness will depend on both drafting and implementation.

Stress-testing restructuring processes

For businesses that regularly undertake reorganisations, redundancy exercises or operational restructuring projects, ensuring that consultation processes are robust will become increasingly important. Errors in identifying affected employees, calculating consultation obligations or documenting decision-making could become more costly under the revised framework.

Employers may therefore benefit from reviewing governance arrangements around change projects and ensuring that restructuring decisions are appropriately escalated and monitored across different business units.

Early planning and clear record keeping will remain critical in demonstrating compliance and managing legal risk.

Assessing the longer-term impact on workforce models

Employers should begin considering how forthcoming protections for zero-hour and low-hours workers could affect workforce planning.

Many organisations rely on casual, seasonal or flexible labour arrangements to respond to fluctuating demand. New protections are likely to require employers to reassess how those workforce models operate in practice and whether alternative approaches may be needed.

Although the detailed shape of some reforms is still emerging, employers can use the coming months to map their current workforce arrangements, identify areas of dependence on low-hours working patterns and assess the potential implications for labour costs, staffing flexibility and operational resilience.