The Employment Rights Bill is set to bring a significant change in Employment Law, with major implications for the construction sector.
While its stated aims are to strengthen job security and workers’ rights, the reforms could impact an industry that is heavily reliant on agency workers, contractors and flexible labour.
As some reforms begin to take effect in 2026, construction employers should begin preparing now for the upcoming practical, legal and financial implications.
Our employment law expert, Kristie Willis is here to show you how.
How will the key reforms affect employers?
Employees may soon gain rights such as unfair dismissal protection, parental and bereavement leave from day one of their employment.
Statutory sick pay will also be payable from day one of sickness absence.
With an initial employment period serving as a probationary phase, some form of light-touch process for certain dismissals is expected.
Employers should review their performance management procedures to assess a worker’s suitability and be alert to the expected changes.
While zero-hour contracts remain legal, the provisions related to them will become more complex and employers will be obliged to offer guaranteed hours contracts after a reference period, reflecting the hours regularly worked.
Planning and assessing the ongoing need for casual labour is key to protecting your business, as short-notice cancellations could result in financial penalties.
The Employment Rights Bill is set to introduce significant changes to collective redundancy rules, requiring employers to consult on redundancies across the business if the threshold number is met, not just at a single site.
Fire and rehire practices will also effectively be banned, unless the employer faces insolvency, if the changes to contracts are not made, in an effort to reduce unfair dismissals for employees.
Contractual changes to pay, hours or certain benefits will need to be carefully managed and consulted on, so seeking legal advice to protect your company might be the best next step.
How can I prepare for these changes?
Construction employers should take steps now to ensure they will be compliant with the new rules and reduce the risks of litigation.
These changes could include:
- Reviewing contracts and policies – Each contract will need to comply with the requirements of the new day-one employment rights and probationary procedures.
- Audit workplace structures – Understand who will be affected by the move towards guaranteed hours and plan staffing accordingly.
- Manager training – Information on how to handle fair dismissal, flexible working requests and performance issues should be provided.
- Engage with unions early – Maintaining positive relations with trade unions and worker representatives can help reduce the risks of disputes and ease consultation processes.
- Review insurance cover – As tribunal claims are expected to increase, you may wish to seek legal advice to mitigate future risks.
How will the future of the construction sector be affected?
The Employment Rights Bill signals a step towards transparency and accountability in the workplace.
For construction employers, adapting early will help maintain workplace stability and avoid any costly fees.
With early planning and tailored legal advice, employers can keep their projects on track when the new rules come into force.
If you need advice on aligning your business’s policies with the new reforms, contact our Employment Law team today.