Close Menu
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing & Mental Health
  • Marketing
  • HR & Recruitment
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
X (Twitter) LinkedIn YouTube
Trending
  • Space-based solar power can deliver the low-cost, sovereign energy the UK’s reindustrialisation depends on
  • When your AI assistant also answers to advertisers
  • Trading Standards Investigation Highlights Huge Differences in Gold Buying Offers
  • How SMEs can win at AI search without a big budget
  • SME Today talks to Ian Hills, founder of Purple Pilchard
  • Why Western businesses still get Africa wrong
  • Wiltshire Web Firm One Of First In The Region To Become An Expert Partner Of Woocommerce
  • Paralympic Gold Medallist Joins Loo Of The Year Awards As Ambassador
X (Twitter) LinkedIn YouTube
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • News
  • Home
  • In Profile
  • Finance
  • Legal
  • Technology
  • Events
  • Features
  • Wellbeing
  • Marketing
  • HR & Recruitment
  • Travel
SME Today
  • About
  • Advertise
  • Events Calendar
  • Business Wall
  • Subscribe
  • Contact
  • 0843 289 4634
  • Twitter
  • LinkedIn
  • YouTube
  • RSS
You are at:Home»Legal»Employment Rights Bill will be the ‘final nail in the coffin’ for many SMEs
employment rights bill

Employment Rights Bill will be the ‘final nail in the coffin’ for many SMEs

0
Posted By sme-admin on April 8, 2025 Legal

Employment law expert Jonathan Winston at Winston SolicitorsSMEs are braced for yet another wave of legal and financial pressures as the forthcoming Employment Rights Bill is set to introduce significant changes to employer obligations later this year.

For many companies still contending with tough economic conditions, this latest legislation could be the ‘final blow’ to already struggling businesses, says employment law expert Jonathan Winston at Winston Solicitors.

The Employment Rights Bill, designed to enhance worker protections, introduces stricter regulations on flexible working, sick pay, redundancy rights and contractual obligations.

While the intent is to strengthen employee rights, many business owners fear the added financial and administrative burden will be unsustainable, when also contending with the new increases to the National Minimum Wage and employer National Insurance contributions.

Jonathan says: “Since 2020, SMEs have endured an onslaught of unforeseen changes, from Brexit complexities to pandemic recovery struggles and rising operational costs.

“The Employment Rights Bill is likely to be the final nail in the coffin, with many employers already feeling weakened, worried and disillusioned. From the pressures I’ve witnessed many firms face, I truly believe these new obligations are the last straw and could result in employee legal battles, increased redundancies and even business closures.

“With confidence in economic stability already fragile, many employers feel overlooked in policymaking and are facing mounting costs and legal hurdles without sufficient government support. As the Bill progresses through Parliament, business groups are urging policymakers to strike a balance between worker protection and employer sustainability. Without meaningful dialogue and support measures, all sectors could see a wave of business failures and stifled growth, further harming both employers and employees alike.”

Jonathan Winston also says that preparation is needed now to help businesses minimise a legal headache. Below are the top areas of the Bill that he feels SMEs should already be thinking about to get ahead of the curve and be fully prepared for the changes to come:

  1. Unfair dismissal
    Businesses should be already starting to strengthen their probationary protections, since Clause 19 eliminates the two-year qualifying period for unfair dismissal claims, granting employees this right from the first day of employment. The government is considering a statutory probationary period, with a preferred duration of nine months. This should include ensuring that managers are trained to document performance issues and implement structured performance reviews.
  1. Check contract variations
    Clause 22 makes it automatically unfair to dismiss an employee for refusing contract changes, except in extreme financial distress. Firms need to think about how they can justify any contractual changes with objective, lawful reasoning. This includes reviewing existing employment contracts to ensure compliance before the restrictions take effect and implementing legally compliant processes for modifying terms and conditions to avoid future disputes.
  1. Address zero-hour contracts
    The Bill mandates guaranteed-hours contracts for zero-hours workers and requires reasonable notice for shift changes or cancellations. This means employers will be legally obligated to offer guaranteed-hours contracts where applicable. To address this, systems must be updated to ensure compliance with notice periods and shift stability.
  1. Third-party sexual harassment
    Employers must take reasonable steps to prevent third-party sexual harassment, with potential compensation increasing for non-compliance. Businesses must conduct risk assessments and implement proactive measures to prevent harassment. Policies should be updated to address third-party risks, including customer or client misconduct.
  2. New employer obligations
    The Bill proposes making flexible working the default unless an employer can provide a legally valid reason for refusal. Employers must prepare to justify refusals with clear, objective business reasons. This means reviewing internal policies to ensure they align with new legal expectations.

For more employment law support and advice visit: www.winstonsolicitors.co.uk/employment-law

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

The remote-work policies that could put employers at legal risk

Why European and British businesses are falling foul of UK worker visa rules

50:50 Deadlock: The Warning Signs of Shareholder Dispute and What to Do About It

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
Porsch Reading – Find Your Perfect Business Partner
Mastermind9
Events Calendar
    November 26, 2026 10:00 am

    South West Expo Swindon

    October 14, 2026 10:00 am

    Thames Valley Expo Reading

  • Marketing
August 26, 2026

How SMEs can win at AI search without a big budget

August 26, 2026

SME Today talks to Ian Hills, founder of Purple Pilchard

  • Finance
August 26, 2026

Trading Standards Investigation Highlights Huge Differences in Gold Buying Offers

August 19, 2026

AI is making pension scams harder to spot

  • People
August 18, 2026

From Redundancy At 23 To Multi-Million Pound Success: Welsh Ceo To Share Her Story

August 10, 2026

Lloyds appoints Fiamma Morton as Managing Director for SME banking across the UK

  • Health & Safety
August 18, 2026

Employers Warned Not To Delay Vital Safety Training Ahead Of Employment Law Change

July 21, 2026

Loo Of The Year Awards Named Finalist In Prestigious European Industry Awards

  • Events
August 13, 2026

Entries extended for the awards putting solo female founders on a stage of their own

June 29, 2026

Great British Expos Postpones South West Expo Due to Extreme Heat Forecast

  • Community
August 13, 2026

Independent British Author Reaches No.1 on Amazon & Donates Profits to Charity

June 19, 2026

Founders charity dinner set to raise funds for epilepsy care

  • Food & Drink
August 12, 2026

Small Food & Drink Business Owner Gripes

June 23, 2026

How To Market A Restaurant

  • Books
August 24, 2026

Leadership Amid ‘the Perfect Storm’: Expert Shares Fundamentally Different Approach

August 13, 2026

Independent British Author Reaches No.1 on Amazon & Donates Profits to Charity

The Newsletter

Join our mailing list for the best SME stories, handpicked and delivered direct to your inbox every two weeks!

Sign Up
About

SME Today is published by the same team who deliver The Great British Expos’. We have been organising various corporate events for the last 10 years, with a strong track record of producing well managed and attended business events across the UK.

Join Our Mailing List

Receive the latest news and updates from SMEToday.
Read our Latest Newsletter:


Sign Up
X (Twitter) YouTube LinkedIn
Categories
  • Books
  • Business
  • Community & Charity
  • Education and Training
  • Environment
  • Events
  • Features
  • Finance
  • Food and Drink
  • Health & Safety
  • HR & Recruitment
  • In Profile
  • Legal
  • Marketing
  • News
  • People
  • Property & Development
  • Sponsored Content
  • Technology
  • Transport, Travel & Tourism
  • Wellbeing & Mental Health
Magazine Information
  • About SME Today
  • Editorial Submission Guidelines
  • Advertising
  • Privacy
  • Contact
  • Editorial Complaints Policy
Copyright © 2026 SME Today.
  • About SME Today
  • Editorial Submission Guidelines
  • Advertising
  • Privacy
  • Contact
  • Editorial Complaints Policy

Type above and press Enter to search. Press Esc to cancel.

Subscribe Now!

Sign up for a FREE subscription and receive the latest news, features and updates from SMEToday:

I am interested in:
 

Thank you for subscribing to SME Today! We're thrilled to have you join our community. To complete your subscription, please check your email and click on the confirmation link. If you don’t see the email in your inbox, be sure to check your spam or junk folder. We look forward to sharing exciting news, updates, and exclusive content with you!

Join our mailing list to receive the latest news and updates from SMEToday
Read our Latest Newsletter: