The Employment Rights Bill Is Here
What Every Small Business Needs to Know
If you employ staff in the UK, take note: the rules just changed.
The Employment Rights Bill, introduced in April 2025, marks one of the most significant overhauls to UK workplace law in over two decades. While media coverage has focused on “zero-hours bans” and “flexible working reforms,” the bigger question is:
What does this mean for you—your business, your contracts, and your payroll?
Whether you’re a business owner, operations lead, or accountant supporting SMEs, here’s a clear breakdown of what’s changing—and how to stay compliant without overloading your admin or budget.
Key Changes in the Employment Rights Bill
Here’s what you need to know—minus the legal jargon:
1. Zero-Hours Contracts: Tighter Restrictions
Employers can no longer offer casual or vague shift commitments without consequences. If you cancel shifts at the last minute, you may now be legally required to compensate the employee.
Action: Review any zero-hours or flexible contract arrangements. Ensure scheduling practices are fair, documented, and compliant.
2. Flexible Working: Now a Day-One Right
Employees are now entitled to request flexible working from the first day of employment—not after six months, as before.
You must have a clear, documented process for reviewing and responding to such requests, including reasonable timelines and criteria.
Action: Update your HR policies and onboarding packs to reflect this change.
3. New Statutory Leave Entitlements
Two new statutory rights have been introduced:
Neonatal Leave & Pay: Time off for parents of premature or seriously ill newborns.
Carer’s Leave: Unpaid leave for employees with caregiving responsibilities.
These are not optional—both must be reflected in payroll systems, employee handbooks, and HR communications.
Action: Adjust leave tracking and payroll categories to incorporate these new statutory entitlements.
Why This Matters—Even If You Outsource Payroll
Even if you don’t run payroll in-house, these changes affect how your business operates.
Hiring or onboarding? You’ll need updated contracts and employee policies.
Managing shift workers or rotas? Expect greater scrutiny.
Supporting parents or carers? New rights now carry legal obligations—and payroll implications.
Falling behind on compliance can be costly—not just in fines, but in reputation and employee trust.
How Intelligent Payroll Keeps You Ahead
We’ve already rolled these updates into our service. Here’s how we support our clients through legislative change:
Proactive Compliance: We track employment law changes before they come into effect.
Statutory Pay Updates: Our systems automatically reflect new entitlements like neonatal and carer’s leave.
HR Support: Need help with flexible working requests? We offer templates, guidance, and advice.
Peace of Mind: You focus on building your team. We keep your payroll compliant, accurate, and under control.
Final Thought
You didn’t start a business to memorise NIC thresholds or statutory leave codes. And you shouldn’t have to.
Let us stay on top of payroll legislation—so you don’t have to.
=======================================
Need help with payroll…
For more information, contact us today or book a demo.