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Employment Rights Bill Update

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The Employment Rights Bill (“ERB”) remains on the agenda across the sector and we expect that to continue into the new academic year, and beyond. Once implemented, there is no doubt that the ERB will represent the biggest overhaul in employment rights for a generation. Until now there has been a lack of specific timelines, with Government only committing to say that the reforms would be coming into force “no earlier than 2026” making it difficult for employers to plan ahead. That has now been addressed by the Government’s Implementing the Employment Rights Bill: roadmap policy paper issued on 1 July 2025 which sets out the Government’s consultation strategy and implementation timeline. This has provided some much-needed clarity for employers, and we summarise below what schools and MATs need to know.

What changes should schools be aware of?

Please see our previous updates on the ERB on the proposed changes. Although the ‘Day 1’ unfair dismissal rights have been the headline grabber, there are some other key proposals that schools and MATs should be aware of:

  • Unfair dismissal – day one right for employees subject to a statutory probation period (likely to be 9 months) during which time a “lighter touch” approach to dismissal can be undertaken.
  • Collective redundancy – the changes will provide that:
    • doubling the maximum period of the protective award which a tribunal can make where an employer is found not to have complied with their collective redundancy consultation obligations from 90 to 180 days gross pay per employee.
    • collective redundancy obligations will be triggered where:
      • 20 or more redundancies are proposed at one establishment (as is the case under the existing law); or
      • A threshold number of employees are proposed to be made redundant across the employer’s organisation. This threshold number will be set in regulations following detailed consultation, however the change could significantly impact MATs or schools with several sites as the number of proposed redundancies across the entire organisation and not just one school.
    • “Fire and rehire” – dismissals for failing to agree to a change in contract automatically unfair, except where businesses genuinely have no alternative as otherwise they will face closure, which is a high threshold to meet and unlikely to apply to schools.
    • Zero hours contracts – introduction of guaranteed hours and payment for late cancellation of shifts.
    • Sexual harassment duty to take reasonable steps to prevent sexual harassment to be broadened to all reasonable steps. Complaints about sexual harassment to automatically extend whistleblower protection to the complainant, as well as Equality Act 2010 protections.
    • ET time limits – to be increased from 3 months to 6 months.
    • Trade unions – commitment to modernise trade union legislation making it easier for TUs to access workplaces, simplify the information required for industrial action notices and introduce protection from detriment for taking part in industrial action (currently the only protection is from dismissal).
    • School support staff negotiating body – the Government intends to recognise the value of the whole school workforce by reinstating the School Support Staff Negotiating Body to enable bespoke negotiation on pay and terms and conditions, as well as advise on suitable training and career progression routes for the varied roles support staff undertake. The proposed approach is for support staff in all state-funded schools in England to benefit from a core pay and conditions offer
    • Reintroduction of two-tier code on workforce matters – in 2005 the previous Labour government introduced the “Code of Practice on Workforce Matters in Public Sector Service Contracts” also known as the “two-tier Code”. The primary objective of the two-tier Code was to ensure fair and equitable employment conditions between public sector staff who had been transferred under TUPE and private sector employees working on the same outsourced public sector service contracts. The two-tier Code was withdrawn in 2010. The current Government’s Make Work Pay agenda includes a commitment to reinstate and strengthen the two-tier Code. This could has the potential to significantly affect procurement in schools including in relation to catering and cleaning contracts.
    • 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.

The Government has published comprehensive factsheets on each proposed area of reform which summarise what the change means https://www.gov.uk/government/publications/employment-rights-bill-factsheets

Is the ERB law?

No. As at September 2025 the ERB progressed from the House of Lords (“HoL”) to its final stages where amendments proposed by the HoL are being considered, before the ERB receives Royal Assent to become law. Secondary legislation may still be needed after this.

In an interesting turn of events, during the second stage of the ERB the HoL proposed some amendments to the ERB and the most interesting ones are as follows:

  • Fire and rehire – the HoL has proposed that instead of a blanket ban on all fire and rehire dismissals, the ban only applies to such dismissals where the proposed changes to the contract relate to pay, pension, hours of work or holiday entitlement. Where the changes relate to something else any dismissal for refusing to agree the changes would be fair provided the employer has acted reasonably and followed a six point checklist, which would include extensive consultation with the employee.
  • Guaranteed hours – the HoL has proposed that the obligation to give guaranteed hours to zero hours workers only if they ask for it.
  • “Day 1” unfair dismissal – the HoL has proposed a six month qualifying period followed by an 18 month “initial period of employment” where a light touch dismissal process could be followed.
  • Trade union reform – reinstatement of the 50% threshold requirement for industrial action.
  • Right to be accompanied – expansions to the categories of people who may accompany employees at disciplinary and grievance hearings to include other professional bodies.

These amendments have now gone back to the House of Commons to discuss and vote on them. The Government can accept them or reject them. If the amendments are rejected the ERB will go back to the HoL although it is likely that if that happens the HoL will back down. It should be noted that proposals such as the “day 1” unfair dismissal rights and guaranteed hours were manifesto promises so it is unlikely the proposed amendments will be accepted. Most likely the ERB will revert to its original form and become law.

When is change coming?

The Government says it will follow a phased timeline for implementation to ensure that employers, workers, trade unions and other stakeholders are given time to prepare for change. The timeline includes specific commencement dates for various measures. ​Common commencement dates will be used to commence the majority of regulations laid using the powers provided for in the ERB, these being 6th April and 1st October.

  • Immediate changes post-Royal Assent include:
    • Repealing the Strikes (Minimum Service Levels) Act 2023
    • Simplifying industrial action notices and industrial action ballot notices
    • Protections against dismissal for taking industrial action
  • April 2026 – the more significant reforms expected to come in, including:
    • Doubling the maximum period of a redundancy protective award where an employer has failed to comply with collective consultation obligations, from 90 days gross pay per affected employee to 180 days
    • ‘Day 1’ paternity leave and unpaid parental leave rights
    • Whistleblowing protections
    • Fair Work Agency body established
    • Removal of the lower earnings limit and waiting period for statutory sick pay
    • Simplifying trade union recognition process
    • Electronic and workplace balloting
  • October 2026 – further significant measures implemented, including:
    • Increase to employment tribunal time limits from 3 months to 6 months
    • Ban on fire and rehire
    • Reintroducing the procurement two-tier code to ensure fair and equitable employment conditions between public sector staff who had been transferred under TUPE and private sector employees working on the same outsourced public sector service contracts.
    • Strengthening trade unions’ right of access
    • Requiring employers to take “all reasonable steps” to prevent sexual harassment of their employees (as opposed to the current requirement to take “reasonable steps”)
    • Introducing an obligation on employers not to permit the harassment of their employees by third parties
    • New rights and protections for trade union reps
  • 2027 final measures to be implemented, including:
    • ‘Day 1’ right protection from unfair dismissal
    • Changes to the collective consultation threshold
    • Bereavement leave
    • Ending the exploitative use of Zero Hours Contracts
    • Gender pay gap and menopause action plans (introduced on a voluntary basis in April 2026)
    • Introducing a power to enable regulations to specify steps that are to be regarded as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
    • Regulation of umbrella companies

How will Government support employers?

The Government has said that it will make available various support measures including through ongoing consultation, the issuing of guidance and the provision of support including through Acas.

What do Schools and MATs need to do next?

Don’t panic! It is important for schools and MATs as employers to understand the incoming changes and what they mean for your organisation, so that you can prepare in good time. There is no doubt that further guidance as well as secondary legislation / regulations will be required for some of the proposals to be implemented. However some of the anticipated changes are expected to be in force either immediately following Royal Assent or in April 2026, which leaves schools and MATs with essentially one term in which to take steps to prepare. It is therefore important to seek timely advice from specialist education lawyers so that you are legally compliant with the new law and well equipped to deal with any challenge.

We will continue to keep our schools clients updated as to the progress of the ERB.

If you have any questions about the Employment Rights Bill and what this means for your school or MAT, or you require any advice or assistance with a schools HR or employment law matter, please contact our dedicated Schools HR helpdesk on 0345 026 8690 or schoolshr@wslaw.co.uk.

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