The Biggest Changes Coming in the New Employment Rights Act And What They Mean for You

By Andrew Carr, Operations Director, ETC Finance

Margins are tight, costs are rising, and every decision now has a bigger impact on the bottom line. That’s why the new Employment Rights Act coming into effect in April isn’t just an HR issue, it’s a commercial one. If you employ people, these changes will affect your risk, your costs, and how you run your business.

To be fair there’s a lot to pay attention to as this is the biggest shift in employment law I’ve seen in a long time.

So what actually changes, and where are the biggest risks for employers?

These are the areas you need to understand first:

1. Unfair dismissal after six months

Employees will be able to claim unfair dismissal much sooner.That means hiring decisions, probation reviews, and early performance management all carry more risk, more quickly. If your processes are a bit informal now is the time to tighten them up.

2. Statutory Sick Pay from day one

SSP will be payable from the first day of sickness, and eligibility is widening. Expect higher payroll costs and a sharper rise in short-term absence exposure, especially if you're a small or lean team.

3. Day-one family leave rights

New starters will immediately qualify for paternity leave and unpaid parental leave. This is a positive step for employees, but it does mean resourcing, planning, and cover will need more attention.

4. A new duty to prevent workplace and third-party harassment

The days of simply responding after an incident are gone. Employers must now take proactive steps to prevent harassment, including from customers, clients, suppliers, and anyone external your team interacts with.

5. Fair Work Agency enforcement

A brand-new enforcement body will be actively checking compliance on basics like pay, record-keeping, and working conditions. If your systems are a bit behind the curve, this is the moment to sort them out.

It’s a lot to take in but don’t panic.

You don’t have to navigate these changes alone. Here at ETC, we can help you understand the financial impact of these changes on your budgets. As an added bonus, I’ve been working closely with Tara Anstee at Zest HR, and her team is absolutely the go-to specialist for navigating the new Employment Rights Act.

Tara has given me permission to share and reference their expertise here because, frankly, they’re outstanding at helping businesses stay compliant without the stress.

April isn’t far away, and these changes will affect costs, risk, and how you manage your people. If you haven’t already assessed the financial impact on your business, now is the time to do it — before decisions are forced on you rather than planned for.