UK 
United States
Currently progressing through Parliament and set for a phased implementation from April 2026 through 2027, the ERB introduces a sweeping package of 28 reforms. For businesses, it presents a formidable compliance challenge; for employees, it promises a new era of security and rights. This analysis, synthesising expert legal and strategic perspectives, breaks down the key changes, their implications, and the critical steps organisations must take to prepare.
Understanding the timeline is crucial for effective planning. The government has structured the rollout to allow businesses time to adapt to the new requirements.
Zhaleh Hawkins, Partner & Deputy Head of Employment at HF explains the staged process:
April 2026: The first wave
The initial phase focuses on worker protection and support for families. Key changes include:
- Enhanced redundancy rights: The maximum period for a protective award in collective redundancy situations will double, providing stronger financial security for workers facing mass layoffs.
- ‘Day one’ family rights: Employees will gain the right to paternity and unpaid parental leave from their first day of employment, a significant shift from the current qualifying period.
- Strengthened whistleblowing: Protections for those reporting workplace wrongdoing will be enhanced to encourage transparency without fear of retaliation.
- Statutory sick pay reform: The lower earnings limit and mandatory waiting period will be removed, extending sick pay entitlements to a larger portion of the workforce.
- A new enforcer: The Fair Work Agency will be established to enforce labour rights and promote fairness, signalling a more proactive regulatory approach.
- Trade Union measures: The process for union recognition will be simplified, and electronic and workplace balloting will be introduced to modernise and strengthen workplace democracy.
October 2026: Strengthening protections
The second phase targets specific exploitative practices and enhances safety obligations.
- Fire and rehire: The Bill will effectively end the unscrupulous use of ‘fire and rehire’ tactics, protecting workers from being forced onto worse terms and conditions under threat of dismissal.
- Social care fair pay: Regulations will establish a negotiating body to establish a fair pay agreement for the adult social care sector in England, aiming to raise standards and pay.
- Positive duty on harassment: A landmark change will require employers to take “all reasonable steps” to prevent sexual harassment of their employees. Crucially, this extends to an obligation to prevent harassment by third parties, protecting those in public-facing roles.
