Timetable for implementation of the Employment Rights Bill published – DLA Piper GENIE

Report on the Employment Rights Bill: Implementation Timetable and Alignment with Sustainable Development Goals

Executive Summary

The government has published an indicative implementation roadmap for the Employment Rights Bill (ERB). The phased rollout extends from Royal Assent through to 2027. This report details the legislative timetable and its significant contributions to achieving the United Nations Sustainable Development Goals (SDGs), particularly SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), and SDG 16 (Peace, Justice, and Strong Institutions).

Phased Implementation Timetable

1. Phase 1: Immediate Reforms (Post-Royal Assent)

   Initial measures focus on strengthening collective labour rights and protections.

   • Repeal of Restrictive Legislation: The Strikes (Minimum Service Levels) Act 2023 and the majority of the Trade Union Act 2016 will be repealed.
   • Strengthening Industrial Action: Rules for industrial action notices will be simplified, and protections against dismissal for taking industrial action will be introduced.
   • SDG Alignment: These actions directly support SDG 8 (Decent Work) by protecting labour rights and promoting secure working environments (Target 8.8). They also reinforce SDG 16 (Strong Institutions) by ensuring fair and effective industrial relations frameworks.

2. Phase 2: April 2026 Reforms

   This phase introduces foundational rights and establishes new institutional frameworks.

   • Enhanced Family & Sick Pay Rights: ‘Day 1’ rights for paternity leave and unpaid parental leave will be established. Statutory Sick Pay will be reformed to remove the Lower Earnings Limit and waiting period.
   • Worker Protections: Whistleblowing protections will be enhanced, and the maximum protective award for collective redundancy will be doubled.
   • Institutional Strengthening: A new Fair Work Agency will be established, and the trade union recognition process will be simplified, with provisions for electronic and workplace balloting.
   • SDG Alignment: These reforms advance SDG 5 (Gender Equality) through enhanced parental leave and support SDG 10 (Reduced Inequalities) via sick pay reform. The establishment of the Fair Work Agency and strengthened protections contribute to SDG 16 (Strong Institutions) and SDG 8 (Decent Work).

3. Phase 3: October 2026 Reforms

   Measures in this phase target workplace safety, fair pay, and union rights.

   • Prevention of Harassment: Employers will be required to take ‘all reasonable steps’ to prevent sexual harassment of employees, including by third parties.
   • Fair Practices: ‘Fire and rehire’ practices will be regulated, and tipping laws will be tightened.
   • Trade Union Rights: The right of access for trade unions will be strengthened, and employers will have a duty to inform workers of their right to join a union.
   • SDG Alignment: The duty to prevent sexual harassment is a critical step for SDG 5 (Gender Equality). Regulating exploitative practices like ‘fire and rehire’ and ensuring fair tipping directly promotes SDG 8 (Decent Work) and SDG 10 (Reduced Inequalities).

4. Phase 4: 2027 Reforms

   This final announced phase introduces major changes to individual employment rights and tackles precarious work.

   • ‘Day 1’ Unfair Dismissal Right: The right to claim protection from unfair dismissal will apply from the first day of employment.
   • Tackling Precarious Work: The exploitative use of zero-hours contracts (ZHCs) will be ended, and umbrella companies will be regulated.
   • Equality and Flexibility: Rights for flexible working and protections for pregnant workers will be introduced. Gender pay gap reporting and menopause action plans will become mandatory.
   • Other Protections: New rights for bereavement leave and measures against blacklisting will be implemented.
   • SDG Alignment: The ‘day 1’ right and regulation of ZHCs represent a fundamental advancement for SDG 8 (Target 8.8), promoting job security for all. Mandatory gender pay gap reporting and protections for pregnant workers are key to achieving SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities).

Schedule of Planned Consultations

Summer / Autumn 2025

• Fair pay agreement for the Adult Social Care sector.
• ‘Day 1’ right to protection from unfair dismissal, including the dismissal process during a statutory probation period.
• Reinstatement of the School Support Staff Negotiating Body.
• SDG Focus: These consultations address foundational elements of fair pay and job security, central to SDG 8 (Decent Work) and SDG 10 (Reduced Inequalities).

Autumn 2025

• Trade union measures (electronic/workplace balloting, recognition processes, right of access).
• Regulation of ‘fire and rehire’ practices.
• Regulation of umbrella companies.
• Ending the exploitative use of ZHCs.
• New rights for bereavement leave and pregnant workers.
• SDG Focus: This broad set of consultations targets the protection of labour rights and vulnerable workers, aligning with SDG 8, SDG 5, and SDG 16.

Winter / Early 2026

• Further trade union measures (protection against detriments, blacklisting).
• Tightening of tipping law.
• Collective redundancy processes.
• Flexible working rights.
• SDG Focus: Consultations will finalize rules promoting worker security, fairness, and workplace adaptability, contributing to SDG 8 and SDG 10.

SDGs Addressed in the Article

1. SDG 5: Gender Equality

   • The article addresses gender equality through proposed legal reforms aimed at protecting female workers and closing gender-based disparities in the workplace. Specific measures include new duties for employers to prevent sexual harassment, protections for pregnant workers, and the implementation of gender pay gap and menopause action plans. These actions directly contribute to creating a safer, more equitable work environment for women.

2. SDG 8: Decent Work and Economic Growth

   • This is the central theme of the article. The Employment Rights Bill (ERB) is focused on strengthening labour rights and promoting fair employment conditions. Key provisions mentioned include the ‘day 1’ right to claim unfair dismissal, ending the exploitative use of zero-hours contracts (ZHCs), strengthening trade union rights, improving Statutory Sick Pay, and regulating “fire and rehire” practices. These measures are designed to ensure decent work for all employees.

3. SDG 10: Reduced Inequalities

   • The article highlights measures intended to reduce inequalities among different groups of workers. This includes protecting those in precarious employment (e.g., workers on ZHCs and agency workers), removing the Lower Earnings Limit for Statutory Sick Pay to benefit low-income earners, and extending protections to all workers from their first day of employment. The mention of a draft “Equality (Race & Disability) Bill” in conjunction with gender pay gap reporting also points to a broader effort to reduce inequalities based on gender, race, and disability.

4. SDG 16: Peace, Justice and Strong Institutions

   • The article discusses the strengthening of legal frameworks and institutions related to employment law. This includes repealing previous trade union acts, simplifying legal processes for industrial action, and establishing a new “Fair Work Agency” to oversee employment rights. These changes aim to create more effective, accountable, and transparent institutions and ensure better access to justice for workers through employment tribunals.

Specific Targets Identified

1. SDG 5: Gender Equality

   • Target 5.1: End all forms of discrimination against all women and girls everywhere. The introduction of “rights for pregnant workers” and measures to prevent sexual harassment are direct actions to eliminate discrimination in the workplace.
   • Target 5.2: Eliminate all forms of violence against all women and girls. The new duty on employers to “take ‘all reasonable steps’ to prevent sexual harassment of their employees” and protect them from harassment by third parties directly addresses this target within the economic sphere.

2. SDG 8: Decent Work and Economic Growth

   • Target 8.5: Achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. This is addressed through “gender pay gap” reporting, the establishment of a “Fair Pay Agreement” for the social care sector, and tightening tipping laws to ensure fair remuneration.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers… and those in precarious employment. This is the core of the ERB. It is reflected in measures like the “‘Day 1’ right – protection from unfair dismissal,” “ending the exploitative use of ZHCs,” strengthening “trade union rights,” and providing “whistleblowing protections.”

3. SDG 10: Reduced Inequalities

   • Target 10.3: Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices. The ERB itself is a legislative action to achieve this, particularly by addressing the “gender pay gap” and linking to a future “Equality (Race & Disability) Bill.”
   • Target 10.4: Adopt policies, especially… wage and social protection policies, and progressively achieve greater equality. The reforms to “Statutory Sick Pay” by removing the Lower Earnings Limit and the regulation of “fire and rehire” practices are social protection policies aimed at achieving greater equality for lower-paid and vulnerable workers.

4. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.3: Promote the rule of law… and ensure equal access to justice for all. This is supported by the “‘day 1’ right to claim unfair dismissal,” which improves access to legal recourse, and the review of “Employment tribunal time limits.”
   • Target 16.6: Develop effective, accountable and transparent institutions at all levels. The establishment of the “Fair Work Agency body” is a direct implementation of this target, creating a new institution to enforce labour laws.

Indicators for Measuring Progress

1. SDG 5: Gender Equality

   • Implied Indicator: Existence of legal frameworks to prevent workplace sexual harassment. The article states that regulations will be introduced requiring employers to “take ‘all reasonable steps’ to prevent sexual harassment.” The enactment of this law is a measurable indicator.
   • Implied Indicator: Gender Pay Gap data. The article explicitly mentions the implementation of “gender pay gap” reporting, which serves as a direct quantitative indicator of economic equality between genders.

2. SDG 8: Decent Work and Economic Growth

   • Implied Indicator: Level of national compliance with labour rights (freedom of association). The repeal of the “Trade Union Act 2016” and the introduction of measures to “strengthen trade unions’ right of access” and simplify recognition processes are direct indicators of progress.
   • Implied Indicator: Proportion of employees in precarious employment. The measure to “end the exploitative use of ZHCs” implies that a reduction in the number of workers on such contracts would be a key indicator of success.
   • Implied Indicator: Number of unfair dismissal claims filed with employment tribunals. The introduction of a “‘day 1’ right” to protection from unfair dismissal suggests that tracking the volume and outcomes of these claims would measure the law’s impact.

3. SDG 10: Reduced Inequalities

   • Implied Indicator: Percentage of the low-wage workforce eligible for Statutory Sick Pay. The removal of the “Lower Earnings Limit” for Statutory Sick Pay directly increases this percentage, serving as a clear indicator of reduced inequality in social protection.
   • Implied Indicator: Existence of pay gap reporting by race and disability. The article’s reference to the “draft Equality (Race & Disability) Bill” in the context of pay gap reporting implies that the future implementation of such reporting will be an indicator of progress.

4. SDG 16: Peace, Justice and Strong Institutions

   • Implied Indicator: Establishment of new public bodies. The creation of the “Fair Work Agency body” is a concrete, measurable event that indicates the development of stronger institutions.
   • Implied Indicator: Changes in legislation governing industrial relations. The “Repeal of the Strikes (Minimum Service Levels) Act 2023” is a specific legislative action that can be tracked as an indicator of a changing legal framework.

Summary Table of SDGs, Targets, and Indicators

Source: knowledge.dlapiper.com