Changes to Employment Rights and What They Mean for Greater Lincolnshire Businesses

Employers across Greater Lincolnshire are being urged to familiarise themselves with significant updates to employment law following the passing of the Employment Rights Act 2025.

The reforms form part of the Government’s wider Plan to Make Work Pay and will be introduced in phases between 2025 and 2027. Rather than a single implementation date, measures will come into force gradually, giving businesses time to prepare, but also requiring forward planning to ensure compliance.

Updated national guidance and implementation timelines have now been published, providing greater clarity on what is changing and when.

A phased programme of change

Some measures have already taken effect following Royal Assent in 2025. Further changes will begin to take effect during 2026, with additional reforms expected into 2027.

The reforms span several core areas of employment law and workforce management, meaning many businesses, particularly those with employees on variable hours or lower earnings, may see operational or financial implications.

Key areas include:

• Statutory Sick Pay reforms, including widened eligibility and removal of the three-day waiting period
• Day-one rights to certain family leave, including paternity and unpaid parental leave
• New Bereaved Partner’s Paternity Leave provisions
• Strengthened collective redundancy protections, with increased potential awards for non-compliance
• Enhanced whistleblowing protections and trade union reforms
• Creation of a Fair Work Agency to strengthen enforcement of employment rights

Looking ahead, further changes expected in 2027 include reforms to unfair dismissal qualifying periods and additional protections relating to fire-and-rehire practices.

While not all measures are immediate, the direction of travel is clear: employment rights are expanding, and enforcement is strengthening.

What businesses should be doing now

Employers may wish to begin reviewing employment contracts and staff handbooks, assessing statutory pay and payroll processes, and ensuring redundancy and consultation procedures remain robust. It is also sensible to revisit internal reporting and whistleblowing policies and ensure managers understand the direction of travel in employment law.

Taking early, proportionate steps now can reduce compliance risk and avoid reactive changes later.

For SMEs in particular, understanding the timeline and planning updates in manageable stages will be key to minimising disruption.

Fully funded support available

Business Lincolnshire is working with the Department for Business and Trade to ensure employers across Greater Lincolnshire receive timely updates and practical guidance as these reforms progress.

If you are unsure how the upcoming changes may affect your business, you can access fully funded support through Business Lincolnshire. Our advisers can help you review your current employment practices, identify areas requiring attention and plan next steps with confidence.

We will continue sharing updates as further consultations conclude and additional implementation dates are confirmed.