The UK Employment Rights Bill is set to reshape workplace legislation, with key reforms rolling out from autumn 2025 and into 2026. For employers, this marks a critical moment to reassess policies, update procedures, and ensure compliance with new standards.

What's changing?

Some of the most impactful updates include:

1. Statutory Sick Pay: Will be paid from day one of illness, with the lower earnings threshold removed.
2. Unfair Dismissal: Employees will be able to bring a claim from 'day one' instead of 2 years.
3. Paternity and Parental Leave: These will become “day one rights,” allowing employees to take leave from their first day on the job.
4. Industrial Action Protections: Dismissals related to lawful industrial action will be considered automatically unfair, and notice periods for strikes will be shortened.
5. Neonatal Care Leave: Up to 12 weeks of paid leave for parents whose babies require neonatal hospital care.

How Employers Can Prepare

Azura recommends taking proactive steps:

1. Review and update employee handbooks to reflect new leave entitlements and sick pay rules.
2. Train HR teams and line managers on handling sensitive leave requests and industrial action scenarios.
3. Audit payroll systems to ensure compliance with new wage and sick pay structures.
4. Communicate clearly with staff about their evolving rights and your organisation’s support.

We are constantly monitoring what is happening with upcoming legal changes and translating what is happening into practical steps you can take to prepare.

Change is coming — and with Azura by your side, you’ll be ready to lead through it with confidence and clarity.