The practical impacts of the Employment Rights Bill

28/12/2025

The Fed has expressed concern about some of the practical impacts of the Employment Rights Bill, which is set to take effect in 2026 and 2027, and called on Government to think about small businesses as its various measures take effect.

National President Hetal Patel said: “The Fed’s members are responsible employers and we know how important it is that our staff feel secure at work and are. Whilst we understand the value of protecting our staff, we have followed this Bill, and now it has become an Act, we continue to have concerns about the real impacts of the measures in it.

Whilst the Employment Rights Act has passed through Parliament certain features are still to be consulted on and this update does not provide legal advice on the measures, though the Fed will give further information to members on how to prepare for the Act next year.

However, key points include:

• At the moment, staff cannot claim unfair dismissal after two years, but this will be cut to six months (though the Government originally hoped this would be introduced from the first day of employment).
• The Bill establishes an employee’s right to reasonable notice of a shift – the Fed has concerns about how this will work in practice given the way shifts change.
• The Act introduces liability for employers for harassment unless they take “all reasonable steps” for third-party harassment (like customers).
• The Act also increases access to Statutory Sick Pay, which will start from the first Day of employment, as well as rights like maternity and paternity pay.

Hetal Patel added: “This remains a challenging time for small shops, and our members typically don’t have support staff like with bigger businesses, so the Fed will be helping our members’ prepare for the impact of the Act in the new year.

“We have discussed our concerns with a range of figures in Government in the last year. If you have any questions about the Fed’s work in this area, please contact our Political Engagement Coordinator at douglas.oliver@nfrn.org.uk“