Bosses expected to ‘Make Work Pay’ in new era of employment rights

The world was in the grip of the Great Depression when Franklin D. Roosevelt became US President in 1933. During his presidency, he enacted a whirlwind of legislative action – known as the ‘New Deal’ – aimed to revive the flagging economy and restore the country’s shattered confidence.  

Jumping continents and changing centuries, the UK’s Employment Rights Bill has echoes of Roosevelt’s employee-centric policy, with key measures including strengthened sick pay and parental leave rights.  

The flagship Bill is touted to drive growth, increase job security and improve living standards. But what does this mean for your business, and how should you prepare for the future? And how will a series of last-minute changes influence the final deal? 

What are the government’s new measures? 

Employer responsibilities have heightened in recent years, with organisations obliged to provide their workers with greater financial support and wellbeing intervention. And with the Employment Rights Bill, employers can expect to face even higher levels of accountability. 

As shown in the government’s roadmap, the Bill will carry forward a range of reforms; from clamping down on zero-hours contracts and fire and rehire tactics, to establishing improved day one rights for millions of workers.  

While not an exhaustive list, some of the key measures to be aware of include: 

• Day one protection from unfair dismissal, while allowing employers to operate probation periods. 

• Day one entitlement to paternity leave and unpaid parental leave, along with a statutory entitlement to bereavement leave. A new amendment takes this further, extending bereavement leave to employees who suffer pregnancy loss before 24 weeks – an important decision that recognises the emotional toll this can have on employees and their families. 

• Ending fire and rehire practices. While the original proposals may be amended to avoid being overly restrictive on employers, the changes will still have a considerable impact on hiring. 

• A crackdown on zero-hours contracts, creating new rights for the one million plus people believed to be working on zero hours contracts. 

• Strengthened statutory sick pay, removing the lower earnings limit for all workers and cutting out the waiting period before sick pay kicks in. 

• Improved access to flexible working, designed to “help people balance work with family, health, and other responsibilities”. 

• A recent amendment that renders non-disclosure agreements (NDAs) void if they prevent a worker from making a disclosure regarding harassment or discrimination.  

How will employers be impacted? 

The proposed measures have been previously described by the government as “the biggest upgrade to rights at work for a generation”. Whether this statement proves true or not remains to be seen, but there’s one question every employer will be interested in: how will it affect my business? 

Our 2026 UK Salary & Recruiting Trends Guide survey data reveals that organisations are divided regarding the impact the Bill could have on their operations. Almost half (47%) say they are concerned about the potential impact the reforms could have on their business, anticipating increased operational costs (63%), along with greater administrative burden to ensure compliance (56%), and increased legal risk (51%) as the leading business impacts. Meanwhile, 47% are not concerned about the impacts the planned reforms may have on their business. Employers are equally split when it comes to readiness, with less than half (47%) saying they have begun preparing for the proposed changes.  

However, if there’s one thing most leaders will agree on, it’s that the cost of doing business is only rising – and keeping up with an increasingly complex regulatory environment is adding to these pressures. Hiring decisions will become even more important, with the Bill’s updated probationary rules making evaluating the right candidate a business priority. And with Royal Assent expected this autumn, leaders shouldn’t delay reviewing their people policies and workforce strategies. 

How should employers respond? 

There’s still a degree of uncertainty regarding the expectations and realities surrounding the proposed measures – with final changes still being made – yet they should prompt employers to refine their workplace strategies in a market where costs continue to increase, and candidates are more aware of their workplace rights and state of wellbeing.  

1. Strengthen workforce planning 

By forecasting future skills needs, identifying gaps, and aligning talent strategies with business objectives, employers can reduce risk, control costs, and maintain agility in a shifting regulatory landscape. Working with a proven workforce solutions partner can help you navigate these complexities, leveraging talent analytics, expert assessment, and salary benchmarking to make better workforce decisions.  

2. Consider flexible working models 

With the new expectations regarding normalised workplace flexibility, organisations will want to consider how best to balance operational needs with employee expectations. While employers will have grounds to refuse flexible working requests, they may do so at the expense of staff wellbeing – and risk losing valuable talent as a result. Hybrid working remains a popular model, and our Working Well Report revealed that 84% of employees say that having this option positively impacted their wellbeing. And with 39% saying they have left a role due to inadequate wellbeing support, flexibility could be a key talent and retention lever.  

3. Embrace agile talent strategies  

Leveraging flexible workforce models and engaging contingent talent can help businesses access critical skills without committing to long-term fixed costs. Taking this further, a Managed Service Programme (MSP) can help organisations deliver cost savings through vendor rate negotiations, improved visibility, and compliance support – with the latter being especially critical as new UK umbrella company legislation takes effect in April 2026.

Make them a deal they can’t refuse  

Whether the Employment Rights Bill carries the same legacy as Roosevelt’s New Deal remains to be seen, and there’s still more detail to be worked through before its staggered enactment. What’s more certain though, is that organisations who make a deliberate effort to put their people first, and embrace more agile workforce strategies, will be more likely to find and retain the skills they need to secure future success. 

Looking to solve your talent and recruitment challenges in an evolving world of work? Get in touch with us today. 

And for expert recommendations on supporting employee wellbeing, take a look at our Hays 2025 Working Well Report.