A last-minute change in the terms of the Employment Rights Bill could exacerbate a lack of readiness among public sector leaders.
Just months before it is due to come into effect, the UK Government announced a significant change to the plans to remove day-one unfair dismissal rights, replacing this with a six-month qualifying period and indicating the compensatory cap for unfair dismissal will be lifted.
But even before the change, a third of public sector leaders said they were unsure about how to implement the Employment Rights Bill, which is due to become law imminently and with the first tranche of main changes coming into effect on 1 April 2026.
Just 67% of local authority leaders say they’re familiar with the Bill, according to a survey by Commercial Services Group, with a third (33%) saying they had ‘little or no knowledge’. Just 60% of local government organisations have begun preparing for the new requirements, as many leaders struggle with stretched resources and constrained budgets.
Kam Singh, Director of Law at Invicta Law, said: “The last-minute change to the Bill may actually be welcome for many public sector leaders, as it was one of the areas of most concern. However, the implications of the Bill are still far reaching, and there remains a significant gap in awareness and readiness despite the looming deadline for introduction.
“The Government itself estimated the cost of the Bill to employers could be as much as £5bn. The key to minimising costs is to prepare as early as possible, with the implications far reaching in every aspect of employer activity, and to communicate the requirements and aims of the Bill as clearly and efficiently as possible.”
More than 500 senior leaders in local government, health, education, housing and blue light services took part in the survey. While the majority of those who are aware of the Bill say it is a step towards improving workforce morale and retention in the public sector (62%), the research highlighted significant gaps in preparedness.
Further insights from the research suggest that focusing on the following key areas will help public sector leaders navigate the changes:
- Strengthen internal communication and engagement
- Assess and address capability gaps
- Lead culture from the top, setting expectations that fairness and respect are strategic priorities
- Align third party employment and recruitment relationships with operational standards
- Monitor impacts of implementing the Bill, and share learnings
Public sector leaders told the Group they were already looking to modernise recruitment practices, strengthen engagement and build cultures of trust. While 56% of respondents said the Bill will improve recruitment and retention, 24% disagreed, and 21% remain uncertain, saying better pay would work more effectively.
One operations manager in education said: “The Bill might help make our offer more attractive, but without better pay, it won’t fix the wider recruitment issues.”
The Bill makes several changes to workers’ rights in the UK. Among them, the 26-week qualifying period for paternity leave will be removed, granting full rights from day one, while those on zero hours contracts will be given rights to guaranteed hours.
Statutory sick pay will be made available to all employees, removing the waiting period currently in place. While this change is estimated to increase costs for workers by £400million per year, a quarter of public sector leaders (25%) have raised concerns about the potential risks to their organisations from implementing the change.
Employers will be liable for all types of harassment of their employees by third parties, unless they have taken all reasonable steps to prevent it from occurring.
Meanwhile, employers of more than 250 staff will also be required to publish gender pay gap action plans, and menopause action plans.
Gill Nye, Managing Director of HR Connect, said: “The vast majority of employees (91%) say stronger employment rights are important, describing them as a moral and practical step forward. However, public service leaders also acknowledge successful implementation of the Bill requires a significant culture change – and employees share that view.
“Commercial Services Group understand the complexities leaders face when navigating these transitions and can offer support every step of the way. Success starts with planning, knowledge building and training, and clear communication. While the Employment Rights Bill will enforce significant change, adapting to it will become much easier with early planning.”
Commercial Services Group’s report, Managing Change: The Employment Rights Bill and the Future of Work in the Public Sector, can be found at https://www.commercialservices.org.uk/wp-content/uploads/2025/11/Employment-Rights-Bill-2025-DIGITAL-1.pdf
To find out more, visit www.commercialservices.org.uk
