How to prepare for the upcoming Employment Rights Bill

Everything owners and managers of care homes need to know to get ready for the Employment Rights Bill

 

 

 

The Employment Rights Bill, which starts coming into effect this year and will continue being implemented in 2026, is set to bring about the biggest change in employment law seen in decades. For the care sector, the impact is going to be significant. For care home owners, directors, and managers, this isn’t just a policy shift - it’s a signal to rethink how staff are managed, supported, and retained. 

With staffing already one of the biggest challenges in social care, adapting early to the new requirements ahead will be essential. Though the changes will bring risk, there will also be significant scope for opportunities to improve working conditions, boost mental wellbeing and build more resilient teams. 

The Employment Rights Bill is a new foundation for staff conditions and rights 

With reports suggesting autumn 2025 as the time of implementation, all employees will soon qualify for Statutory Sick Pay (SSP) from day one, with no earnings threshold. This will extend sick pay to many care staff who are currently excluded; particularly part-time or casual workers. This means that care home operators will need to consider higher absence-related costs and a greater need for tight monitoring of sickness leave and rota cover. Care homes relying on lean staffing models will need to adjust quickly. 

The Bill also introduces day-one rights to request flexible working, as well as new leave entitlements for carers, paternity, and bereavement. These are no longer benefits that kick in after six or twelve months, instead they’ll be available immediately. This shift will place extra pressure on rostering and HR processes, but it also allows care homes to demonstrate genuine support for staff wellbeing. 

Zero-hour and casual workers will see some of the most direct changes. Anyone who’s been working regular hours over a defined period will gain the right to request a more predictable working pattern. For care homes that rely heavily on flexible staffing, this could mean a rise in formal shift requests, and potentially a move toward more permanent or fixed-hours contracts. 

Changes to contracts and dismissals 

One of the most significant reforms that comes into force in 2026 will be protection from unfair dismissal from the first day of employment. This replaces the current two-year qualifying period. Employers will still be able to use probation periods, expected to be up to nine months, but they’ll need to be clearly defined, properly documented, and fairly applied. 

This change increases the importance of structured performance management during probation. Informal, undocumented dismissals could lead to legal claims if not handled properly. Managers must be confident in setting clear expectations, giving feedback, and keeping accurate records. 

The Bill also introduces a ban on so-called ‘fire-and-rehire' tactics, where staff are dismissed and re-engaged on less favourable terms. Except in rare cases of genuine financial distress, this practice will no longer be permitted. Contractual changes, such as revised shift patterns, hours, or pay structures, will now require proper consultation and agreement. For care homes looking to restructure or streamline operations, this will limit flexibility and place greater emphasis on open negotiation. 

Safer working environments 

The new law also places stronger duties on employers to prevent workplace harassment. This includes harassment from residents, relatives, agency workers, or any third party, not just direct colleagues. Employers will be expected to take “all reasonable steps” to prevent such behaviour, and to act swiftly if issues arise. 

For care homes, this means more than just updating the staff handbook. It requires practical, visible action, such as training, improved incident reporting, clear policies, and consistent responses from management. Care homes that already take a trauma-informed approach to staff wellbeing may find they are ahead of the curve. 

A new Fair Work Agency will also be established, with powers to inspect workplaces, gather evidence, and enforce compliance. Unlike the CQC, which focuses on care standards, this body will focus on employment conditions. Therefore, poor documentation, out-of-date contracts, or inconsistent HR processes could become a real liability. 

How you can get ahead of the changes 

The Employment Rights Bill’s full implementation is still months away, but waiting to act is risky. With so many changes on the horizon, a full audit of current employment practices is a sensible first step. 

Employment contracts will need reviewing and, in many cases, rewriting to include updated terms around probation, leave, and predictable hours. Staff handbooks should reflect new entitlements and procedures. Payroll systems must be ready to process SSP for all workers from day one, including those on the lowest wages. 

Line managers and team leaders will need training, particularly around flexible working, managing probation, responding to complaints, and documenting performance issues. These are the areas where legal risks, and staff tensions, can surface quickly if policies aren’t applied consistently. 

For homes that use a lot of agency or bank staff, it may be time to reconsider those arrangements. If a worker has been filling regular shifts for weeks or months, offering them a contract could be both more compliant and more sustainable in the long run. 

Communication will also be key. Staff will hear about these changes through social media, news stories, or word of mouth. Being upfront about how your care home is responding, what’s changing, what’s staying the same, and where support is available, can go a long way in building trust and reducing uncertainty. 

Looking forward 

Ultimately, the Employment Rights Bill will reshape the way care homes operate. But it doesn’t have to be a burden, nor present an even greater risk to profit margins. By taking early, practical steps, care providers can not only meet the new legal standards but also improve job satisfaction, reduce turnover, and attract new staff in a competitive market. 

For more information on how our products can help you to meet the requirements of the Employment Rights Bill, click here for more information on our Connected Care Platform.