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Preparing for the upcoming Employment Law changes

Supporting people and organisations to thrive | 5 minute read

Even before new employment legislation lands fully, it changes behaviour: leaders hesitate, managers second-guess decisions, and HR teams feel pressure to “future-proof” practices that haven’t been stress-tested for years. The smartest approach is to treat this as a readiness programme, strengthening employee relations, tightening early-tenure processes, and removing avoidable risk before the new rules harden. 

Key takeaways

1. This isn’t just compliance - it’s a shift in employee relations, early-tenure risk, and organisational decision-making.   
2. Probation becomes a real control point: track it, document it, and manage it properly.
3. Talent acquisition will matter more: fewer “fix it later” hires as rights arrive earlier. 


Why this matters 

The Employment Law Bill is no longer a future consideration. It will influence hiring, probation and employee relations, shaping risk and accountability far earlier in the employment lifecycle and affecting how organisations make people decisions from day one.


80%

Of UK employers believe the Employment Rights Bill will increase workforce costs, signalling significant financial and operational impact for HR teams.

Source: CIPD


£150,000

Is the proposed maximum fine for repeated breaches of union access rules, increasing regulatory and financial risk for employers.

Source: Gov UK

Legislative change rarely arrives quietly. Even before the Employment Law Bill becomes law, organisations are already feeling the ripple effects: uncertainty, questions about compliance, and pressure to modernise long-standing practices. While the Bill is nearing the end of its mandatory consultation period, its direction is clear, and the implications for employers are significant.

At a time when workforce expectations, employee rights, and political priorities are shifting, organisations cannot afford to wait for the final version of the legislation before preparing. The businesses that act early will be the ones that navigate the transition smoothly.

So, what do we already know? And how can organisations get ahead.

Why it matters

Two areas, in particular, are likely to have the biggest impact on employers: greater union access and new rules around probation and employment rights.

1. Greater access for trade unions

One of the most notable changes is the proposed expansion of trade union access into the workplace, the most significant in years. Early indications suggest unions could be entitled to meet employees once per month, either in person or digitally. Crucially, preventing or restricting this access wouldn’t just be non compliant; it would be expensive. Blocking access could carry a £75,000 fine per instance. Repeated blocking? That’s another £75,000, each time. In theory, an organisation could accumulate a quarter of a million pounds in little more than a quarter, nearly a million pounds in a year. The financial incentive for unions to enforce these rights will be strong. And the reputational implications for employers who appear resistant to transparency or engagement could be even stronger.

This is not a peripheral change. It is a cultural one. Not understanding your requirements when it comes to employee relations can not only be costly, it can significantly impact the speed and the cohesion in your organisation.

2. Probation and the ‘Point of No Return’ 

Today, employees gain full statutory rights after two years. Under the new bill, many of those rights would be accessible much earlier, significantly reducing the window in which employers can correct hiring mistakes or performance concerns. This places greater importance on running probation properly, documenting decisions clearly, managing performance early and consistently, and making timely, confident decisions. For some organisations, this will require a mindset shift. Under the current system, failing to complete a probation review on time might create inconvenience. Under the new system, it could create a far more complex, drawn out, and costly process, because the employee will gain enhanced rights sooner.

Probation can no longer be an administrative afterthought. It becomes a legal safeguard, and there is the critical change. Probation periods had no statutory place in law before, they were a marker in the employment lifecycle. Nothing more. Now they are likely to be the point of no return.

Who will this impact most?

Despite the headlines, this bill won’t overhaul the rights of every employee overnight. Most organisations have a large proportion of people who already have two years’ service or more, meaning they already enjoy many of the rights proposed. Instead, the bill will affect a segment of a segment: new starters and early tenure employees. This means the impact will grow gradually, not suddenly, and it will be limited to early tenure.

Fundamentally for many organisations, it means 18 months lost of “opportunity” to end employment. But that slow burn is exactly why organisations need to prepare now. If early hires are mishandled, the consequences will build over time. This puts one team in the spotlight more than any other: Talent Acquisition.

Why Talent Acquisition becomes critical

If hiring decisions become more binding, more quickly, then getting recruitment right becomes fundamental. This is a huge opportunity, and responsibility, for talent acquisition teams. The bill reinforces the need to:

  • Hire the right people
  • In the right roles
  • With the right expectations
  • Using robust, fair, consistent processes

Because avoiding the “pain” of the new bill starts with making the right hiring decisions upfront. When the margin for error narrows, excellence in recruitment becomes not just a competitive advantage, but a compliance requirement.

So how can organisations prepare?

While the final details of the bill have now been passed, subject to some final tweaks, there are key steps organisations can take now to get ahead.

  1. Strengthen your relationship with unions or prepare for a landscape that includes trade unions.
    This doesn’t mean proactive recognition, it means understanding expectations, building mechanisms for access, and preparing managers for constructive engagement. It means being proactive about your approach to employee relations.

  2. Tighten your probation processes.
    Track them. Document them. Operate them consistently. Treat probation as a critical compliance activity, not a routine review. No longer will they be a nice to have, they will be mandatory and legally binding. Audit your current emerging talent. Before the changes are enforced, where are all your recent starters? Are they performing well or do you need to have a conversation to support them or exit them before it’s too late?

  3. Upgrade your hiring standards.
    Structured interviews, meaningful capability assessments, realistic job previews, these will become essential, not optional. A six month probation in some ways is the worst of all worlds. It’s fine for your high performers, but do you really want to start looking again six months into their tenure or be stuck with a poor performer who has already wasted six months of opportunity for you.

  4. Audit your early tenure experience.
    What happens in the first 30, 60, 90 days matters more than ever. Look for gaps, risks, and inconsistencies. Make sure your managers and leaders are robust in their requirements, assessments, and support.

  5. Educate line managers early.
    They hold many of the levers affected by the bill. Build confidence and clarity before the legislation arrives.

  6. Stay close to consultation updates.
    The shape of the bill may shift, but the direction won’t: more rights, earlier, with more scrutiny.

Act now, not later

The employment law bill isn’t something to fear, but it is something to prepare for. Its changes will bring greater transparency, greater employee protection, and greater accountability for employers. And while these changes won’t transform your organisation overnight, they will reshape your processes, expectations, and people decisions over time.


The organisations that treat this as an opportunity to strengthen hiring, sharpen probation, and modernise workforce practices will navigate the transition with confidence. Those that don’t may find themselves exposed, not because the rules changed, but because their processes didn’t.

Download our employer's guide to the Employment Rights Act 2025

Our employer's guide to the Employment Rights Act 2025 outlines the key changes employers need to prepare for and features a clear timeline of all major dates to be aware of, helping you understand what is coming up and how to get your business ready with confidence.

Get the guide

The organisations that treat this as an opportunity, to strengthen hiring, sharpen probation, and modernise workforce practices, will navigate the transition with confidence.

Steve Foulger
Director of Organisational Change and HR Services

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General disclaimer

This insights article is not intended to address any specific situation or to provide legal, regulatory, financial, or other advice. While care has been taken in the production of this article, NFP does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose of the article or any part of it and can accept no liability for any loss incurred in any way by any person who may rely on it. Any recipient shall be responsible for the use to which it puts this article. This article has been compiled using information available to us up to its date of publication.


NFP contributors

Steve Foulger
Director of Organisational Change and HR Services


References

  1. CIPD
  2. GOV UK

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