The Employment Rights Bill: What do universities need to know?

The Employment Rights Bill: What do universities need to know?

As the Employment Rights Bill continues to work its way through Parliament, universities should be considering how the shift towards stronger protections for individuals will affect them and what changes they need to make to their existing practices and procedures.

The Bill is a comprehensive legislative proposal intended to strengthen workers' rights and rebalance the employment relationship in favour of greater predictability, job security and procedural oversight. Whilst many of the provisions remain subject to consultation or secondary legislation, the direction of travel is clear.

New obligations will be introduced in key areas such as dismissal, contractual changes, flexible working and family-related rights. This article provides an overview of some of the key elements of the Bill and outlines practical next steps for universities to consider.

Key proposals at a glance

The removal of the two-year qualifying period for ordinary unfair dismissal claims will have a significant impact. In its place, the Bill introduces an Initial Period of Employment (IPE), likely to be nine months, during which a simplified dismissal process may apply in certain cases, such as the employee's capability or conduct. The IPE framework is expected to include procedural safeguards, such as the right to be accompanied. A cap on compensation for dismissals during this period is also expected.

What this means for you: It is a good time to revisit your probation and early-stage performance management processes. Ensure they are clearly structured, consistently applied and supported by documentation and manager training to mitigate risk and maintain procedural fairness. A well-handled probation period can help you manage risk and make informed decisions early.

The proposal to make dismissal and re-engagement (commonly referred to as fire and re-hire) automatically unfair except in limited circumstances could have a significant practical impact if you want to change terms and conditions of employment. You will need to show that contractual changes were essential to avoid substantial financial harm to your university and that no reasonable alternatives existed. A revised statutory Code of Practice will support this change and is expected to introduce more robust procedural standards.

What this means for you: When the new regime is introduced it will be much more difficult to vary terms and conditions of employment and the fire and re-hire method will only be justifiable if it is the only viable solution to keep the university afloat.

Family-related rights are set to be enhanced. This will include day one eligibility for parental and paternity leave, greater flexibility over the sequencing of paternity and shared parental leave and extended protection against dismissal during and following pregnancy or family-related leave. In addition, employees will have a new right to unpaid bereavement leave following a close family loss.

What this means for you: You should prepare to update your family leave policies to reflect these changes, particularly in relation to eligibility, sequencing and protection from dismissal. With more employees qualifying for leave from day one and enhanced protections in place during and after periods of absence, it will be important to ensure that managers understand the extended entitlements and avoid decisions that could give rise to discrimination or unfair dismissal claims. Reviewing internal processes now, including how absence is covered and how return-to-work transitions are managed, will help support compliance and reduce the risk of unintentional missteps.

Further key proposals

• The extension of statutory sick pay from day one of an absence and removing the lower earnings limit.
• Enhanced flexible working rights which will make it much harder for an employer to refuse a flexible work request.
• A statutory duty to take all reasonable steps to prevent workplace sexual harassment, including by third parties.
• Reforming collective redundancy thresholds and protective awards.
• The creation of a new Fair Work Agency to enhance enforcement.

Overall, the Bill signals a shift towards enhanced individual rights, procedural formality and greater transparency. Whilst implementation will be phased, preparing now will give your university a better chance of adapting smoothly and confidently.

Planning for the changes

There is no one-size-fits-all approach, but these actions could help you prepare constructively:

• Audit key risk areas: Review current processes and documentation in relation to dismissal, family-related leave and contract variation. Think about how the changes will affect your legal obligations and your day-to-day operations.
• Engage with line managers: Ensure your line managers understand what is changing and are supported in preparing for implementation, particularly in relation to dismissal and flexibility processes.
• Anticipate updates to internal policies and templates: Plan now for internal document updates, even if some details are still to be finalised. Having a draft in place will help you move quickly when final regulations are confirmed.

Looking ahead

Although many of the Employment Rights Bill’s provisions are still to be finalised and will not come into force until 2026, the direction of reform is firmly established. This is not just a compliance issue, it is a strategic opportunity. By acting early and taking a structured, legal informed approach, you can:

• Reduce cost and complexity later
• Protect your university from disruption and legal risk
• Support a fairer workplace culture

For advice on assessing the potential impact of the Bill on your university, or for support with planning and implementation, please contact Jane Byford in the HE team at VWV on 07909 656764.