Big changes are coming to UK employment law – but not all at once. The government’s new Employment Rights Bill promises stronger protections for workers, including fairer contracts, better access to sick pay, and the right to flexible working. However, many of these rights won’t come into force for up to two years, giving businesses time to prepare.
For employers, this isn’t just a legal update – it’s a major shift in how they manage staff and costs. And at Accountants247 Golders, it’s a golden opportunity to help you – our client – plan ahead, manage risk, and stay compliant.
🚨 What’s Changing?
The Employment Rights Bill includes a number of reforms, including:
- Unfair dismissal protection from day one (no more 2-year wait)
- Ban on exploitative zero-hours contracts
- Right to request flexible working from day one
- Stronger sick pay and parental leave entitlements
- A new Fair Work Agency to enforce rights
While some changes may begin as early as autumn 2025, many won’t be fully enforced until 2026 or later.
🏢 What This Means for Businesses
1. Longer preparation time—but don’t delay
While the two-year delay offers breathing room, businesses shouldn’t wait until the last minute. Some rules will arrive sooner, and early planning is key to avoiding rushed compliance and costly mistakes.
2. Higher risk of employee claims
With new protections in place, businesses will face more employment tribunal claims—especially around dismissals, contracts, and flexible working.
3. New compliance costs
Employers may need to update contracts, rewrite policies, train managers, and adjust payroll systems. The government estimates businesses will face a collective compliance cost of £33 million.
📊 How Accountants247 Golders Can Support You
We have a critical role to play in helping clients prepare – financially, operationally, and strategically.
1. Forecasting and budgeting
Help clients estimate the cost of new entitlements like sick pay, parental leave, and contract changes. Use cash flow modelling to plan ahead.
2. Payroll and system updates
Ensure payroll software is ready to handle day-one benefits, flexible working arrangements, and new contract terms.
3. Risk management
Assist clients in setting aside provisions for potential tribunal claims or legal disputes under the new rules.
4. Policy and compliance reviews
Work with HR teams to audit contracts and internal policies. Flag any areas that need updating before the rules take effect.
5. Staff training support
Offer or recommend training to help business owners and managers understand the upcoming legal changes—and avoid costly mistakes.
The next two years offer a vital window for businesses to prepare for one of the biggest employment law overhauls in decades. With smart financial planning and proactive advice, Accountants247 Golders can help you stay ahead of the curve, avoid risk, and build fairer, more resilient workplaces.
Tip for our clients: Start reviewing your staff policies now – don’t wait for the law to catch up. Talk to us today and contact our friendly Golders Green team here.
