Buzzing About HR

Special Edition: The Employment Rights Act in Plain English for Small Businesses

Kate Underwood Season 1 Episode 49

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0:00 | 19:23

In this episode of Buzzing About HR, I am cutting through the noise around the UK Employment Rights Bill and focusing on what actually matters for small businesses.

Because let’s be honest, there has been plenty of commentary, plenty of opinion, and plenty of people making it sound like the sky is falling. What most small business owners actually need is something much simpler. Clear decisions. Clear priorities. And a sense of what needs doing now, what can wait, and what is just noise.

So that is what this episode is about.

I walk through the employment law changes that should already be quietly working in the background, including flexible working from day one, carers leave, extended redundancy protection, tips and service charge rules, the duty to prevent sexual harassment, and neonatal care leave. I explain what these mean in practice, what managers actually need to say and do, and where small businesses often get caught out without realising.

Then we look ahead to what is coming next in 2026 and 2027. Changes to Statutory Sick Pay, predictable working requests, reforms to zero-hours and casual work, and a tougher approach to fire and rehire. We also get into the one that is making a lot of businesses sit up straighter. Unfair dismissal rights are dropping to six months.

I talk about what that really changes day to day, without panic and without overcomplicating it.

We also cover what is not happening, despite some of the headlines, and why sensible workplace boundaries still matter even when the law does not spell every single thing out for you.

By the end of this episode, you will have a much clearer sense of what to tighten up now, what to plan for next, and how to keep your business compliant without turning your weekends into one long HR admin session.

If you want to get ahead calmly and confidently, this episode will help you do exactly that.

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Until next time, keep buzzing and take care of your people!

Setting The Scene And Stakes

SPEAKER_00

Picture this. It's Wednesday, the seventeenth of December, twenty twenty five. Budget crumbs everywhere. Headlines pinging. Hazel, our long-suffering well-being officer, has dragged a stack of draft contracts into a protective circle and is guarding them like treasure. I'm on T number two and muttering, right, what actually changes and when? Here's the question. The Employment Rights Bill cleared Parliament yesterday. Relief, chaos, or both. Let's turn the noise into choices you can actually make today. Hazel has sat on the folder labelled probation, subtle, welcome and housekeeping. Hello, I'm Kate, and this is a special buzzing about HR, UK only. Plain English, no fluff. If you run a small business or you are the HR department, you're in the right place. Hazel accepts payment in biscuits on taxed for now. Quick context on the 16th of December. Royal assent is due on Thursday, the 18th of December 2025. Start dates are phased through 2026 and 2027. I'll cover what's already in force, what's now confirmed, what got dropped, and what to line up so January doesn't mug you. Also, while we're here, it's our 40th episode, apt really, for a law that loves a big round number. Hazel has filed a formal request for 40 celebratory biscuits. I've counter-offered two digestives and a longer walk. Negotiations continue. Part one. Layer one is already baked. The 2024 and 2025 changes that should be in your handbook and payroll by now. Layer two is going in the oven. The chunky 2026 and 2027 reforms that will change how you rotor, manage sickness, and handle dismissals. You're juggling festive rotors, year-end payroll, and party season behaviour. The worst combo is new law, old policy, tired managers. Let's avoid that. Part 2. Benefits vs. Headaches. Upside first, more predictable work for irregular hours, earlier protection for newer hires, clearer processes that good employers mostly do already. This can help you hang on to decent people. Now the pinch. More cost, sick pay from day one, higher dismissal liabilities, tighter timelines, and more admin if you wing it. The trick is to set the basics now so you don't pay twice later in panic and claims. Part 3. What's already in force and should be in your handbook. Flexible working from day one since the 6th of April 2024. Two requests a year, decision within two months, consult before refusing. If your policy still says after 26 weeks, it's out of date. Update the form, add a short decision letter, and brief managers so they stop saying not in probation. Redundancy protection extended for pregnancy and family leave from the 6th of April 2024. Protection runs up to 18 months after birth or adoption. In practice, you have to consider suitable alternative vacancies first and be able to show you DID. Carers leave from the 6th of April 2024. One week unpaid from day one. Add a short policy and a simple request form. Managers should either agree or postpone with a clear reason and a new date. Tips Gratuities and Service Charges from 1st October 2024. Pass 100% to staff, less tax, and none I. You need a written tips policy and three years of records. Card fees are your problem, not the teams. Duty to prevent sexual harassment from 26 October 2024. This is proactive. Reasonable steps means short training, a clear route to report, sensible risk checks for events and client sites, and acting fast. Tribunals can uplift compensation by up to 25% if you haven't done the basics. Neonatal care leave and pay from 6 April 2025. Up to 12 weeks for qualifying parents where a baby born on or after the 6 April 2025 spends seven plus days in neonatal care. Payroll needs the code. Managers need a single, calm sentence says we've got you. If any of those aren't live in your handbook, that's Job 1. Part 4. What the employment rights bill just confirmed, the big ticket items. Statutory sick pay from day one from April 2026. Waiting days go. Expect more short spells of paid sickness. Return to work chats and trigger points matter more. Parental leave and paternity as day one rights from April 2026. More flexible ways to take time off. Tidy the policy, manager crib notes and payroll workflow. Zero hours and casual contracts. Expected mid-2026. Offer guaranteed hours that reflect the actual pattern, give reasonable notice of shifts and pay compensation for short notice cancellations. Start measuring hours and notice now so you're not guessing later. Predictable working patterns, a right to request, expected alongside the above. People can ask for regularity. Your defence is good data. Who actually works what and when. Fire and rehire code with teeth, building through late 2026. Using dismissal to force changes will be tightly policed. Poor practice can add up to 25% to awards. The fix is early consultation, honest rationale, tidy notes. Unfair dismissal overhaul from the 1st of January 2027. Qualifying period drops to six months. The statutory cap on compensation goes. Awards will reflect actual loss. Translation. Evidence must exist, and time served won't save you. Union access and broader consultation phase 2026. Expect earlier and wider consultation across sites in redundancy plus easier union engagement. Keep minutes tidy. Keep data tight. Part five. What's been dropped or parked? Worker status simplification. Employee slash worker slash self-employed is shelved. Stick with the current three categories and review contracts when roles change. Right to disconnect is not in. You can still set boundaries, published working hours, one emergency contact route, and take time back rules. Part six Timeline at a glance. Now flexible working day one, extended redundancy protection, carers leave, tips rules, duty to prevent sexual harassment, neonatal leave slash pay. April 2026. Sick pay. Day one. Parental paternity as day one rights. Mid 2026. Guaranteed hours, shift notice rules, cancellation pay, predictable working requests. Late 2026. Fire and rehire code. Unfair dismissal at six months. No statutory cap on compensation. Part seven. What to do this week? Light touch. It's Christmas. Housekeeping sweep. Make sure handbook and contracts reflect the 2024 slash 2025 changes above. Switch on data. Start capturing actual hours, notice given for shifts and cancellations. Probation reality. Set day one goals and book a midpoint review for new starters. Keep it light. No all-nighters. Have cake. It helps the soul and the inbox. Sidebar. This sounds like a lot of admin Kate. It does. And doing it all in spreadsheets will eat your evenings. The good news. There is affordable tech for small businesses that automates the dull bits, requests, approvals, hours data, return to work notes, policy logs, book a discovery call, and I'll help you pick something that gives a real return on investment for your time, reduces spreadsheet faff, and helps managers follow the rules without thinking about it. 10 minutes of setup now saves you 10 hours of chasing later. Cake while it installs is optional but recommended. Part 8. Mini dramas. Wrong turns plus quick fixes. We always refuse flexible working in probation. That died in April 2024. Listen, try a short trial, decide within two months and confirm in writing. You can refuse with proper reasons, but you must consider. Zero hours means last-minute life. From 2026, short notice cancellations can cost you. Start giving reasonable notice now and record it. Future you will thank present you. Under six months, we'll just exit. From January 2027, six months service gets unfair dismissal protection and there's no statutory cap. If you don't have a fair reason and a fair process, you'll pay for it later. Bonus The Christmas Party. Banter crosses a line at a client venue. You didn't train, didn't risk assess, and there's no reporting route. Fix. Short training before events. A one-page speak up route and one sensible senior on duty. Bonus, the tips tangle. You've been netting off card fees from tips. Fix. Stop. Write the tips policy. Reconcile properly, keep records for three years and tell the team how it works. Bonus. The neonatal panic. A manager freezes when a baby arrives early. Fix one sentence in the manager guide. You may be entitled to up to 12 weeks neonatal leave and pay. Here's how we'll support you. Then the payroll code calmly. Part 9. Practical takeaways. Update the handbook and templates now. Don't wait until the week before. Track hours. Notice and cancellation so 2026 doesn't bite you. Train managers in three bytes. Flexible working. Redundancy protections. Harassment prevention. Make probation meaningful. Day one goals. A midpoint check. Clean decision notes. Model two thousand twenty six slash twenty seven costs. So nothing blindsides you. Before Christmas, not today. Short checklist. Handbook. Wording pass outline only. Flexible working. Carers leave. Tips. Anti harassment. Neonatal leave slash pay. Redundancy protection. Probation. Draft the templates. Headings only. Flexible working outcome. Carers leave. Confirmation. Return to work form. Probation. Midpoint. Probation outcome. Tips policy. Anti harassment. Reasonable steps. Checklist. Assign owners and sign offs. Put names next to policy wording owner. Payroll settings owner. Manager training owner. Comms owner. Final sign off. Pop three January slots in calendars. Manager brief, payroll check, policy sign off. Part ten. Listener. Q and A seven quick ones. Q one. Do I have to approve every flexible working request? A No. You must consult and respond within two months. You can refuse for valid business reasons. Just write them clearly and be consistent. Q two. Can carers leave be refused? A. You can postpone if operations would be seriously disrupted, but you must allow it within a reasonable time, say when it can happen. Q three. Are tips really 100% to staff even with card fees? A. Yes, only tax and national insurance can be deducted. You need a policy and three years of records. Q4. What counts as reasonable steps on harassment? A short training, a named reporting route, sensible risk checks for events and client sites, and acting fast. That's the minimum. Q5. Neonatal leave. Who qualifies? A. Parents of babies born on or after the 6th of April 2025 who spend seven plus days in neonatal care, up to 12 weeks leave and statutory pay if eligible. Q6. When do the zero hours reforms bite? A. During 2026. Expect guaranteed hours. Reflecting real patterns, reasonable notice of shifts and cancellation pay. Track patterns now. Q7. Six months for unfair dismissal. Can we still exit early? A. You can with a fair reason and a fair process. From January. So documentation matters. Pick your help. Lightweight, practical. Barbie. Jump start 90 minutes. We audit your handbook, Contracts and Manager Gaps. You leave with a priority list and dates. Manager Briefkit. Bite-sized scripts and a 30-minute live huddle run by us. Payroll and hours. Sanity check. We switch on the fields and reports your need for 2026 compliance. Probation reset. We rebuild your flow so it actually protects you when the six-month rule lands. Prices on the call. Simple, fixed, no faff. Back to our opening scene. Contracts everywhere, Hazel perched on probation, and me penciling dates. Relief or chaos? Honestly. Both. If you leave it until the week before, go live. Do the boring, useful things now. Tidy the handbook, switch on the data, rehearse the conversations, price the risk. Then you'll take the reforms in your stride. And your people will feel the fairness the law is aiming for. If you want a pair of eyes on your documents, help choosing affordable tech with a real return on your time. Or a quick plan for January. Book a discovery call. We'll map your first three moves and Hazel will judge our biscuit selection. If she hides her eyes with her paws, it's only because she thinks biscuit tax is next. Kettle on, standards up. See you next time.

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