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
  • Care Sector Specialist Partners With Technology Platform To Tackle A Communication Crisis In Social Care
  • Employment Hero’s 2025 work review: UK workers pushed to the limit yet still finding reasons to enjoy their jobs
  • Tachmed moves into ARC West London to drive next phase of development strategy
  • Communication Expert Celebrates Book Launch At Oxford’s Saïd Business School
  • SME Awards To Spotlight The Real Engine Of Uk Growth – Small Businesses 
  • Protecting Businesses From The Biggest Tech Threats In 2026
  • Businesses Step Up Their Washroom Standards As Loo Of The Year Figures Reveal Big Changes
  • Legal and regulatory changes SMEs should prepare for in 2026
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
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

Legal and regulatory changes SMEs should prepare for in 2026

Expert Reactions on Unfair Dismissal Policy U-turn

The National Living Wage and National Minimum Wage

Comments are closed.

Follow SME Today on Linkedin and share all the topics you find interesting
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
ISO/IEC 27001 roadmap: A practical guide for UK SMEs
Are you a Company Director?
Are you a Company Director - Verify your identity
Mastermind9
Events Calendar
    • Marketing
    December 16, 2025

    What UK businesses need to know about Meta’s originality crackdown

    December 11, 2025

    Why Marketing Still Needs Humans

    • Finance
    December 22, 2025

    On-chain settlement is set to reshape global payments, says D24 Fintech

    December 19, 2025

    Amidst all the uncertainty, has the Budget offered a new dawn for SMEs to invest?

    • People
    October 13, 2025

    Dr. Karim Bahou appointed Head of Innovation at Sister, Manchester’s £1.7bn innovation district

    September 30, 2025

    Allergen Free For The Win: Ceo Of Inclusive Food Brand Announced As Best Business Woman

    • Health & Safety
    December 22, 2025

    Businesses Step Up Their Washroom Standards As Loo Of The Year Figures Reveal Big Changes

    September 18, 2025

    Lessons From Grenfell Are Still Being Learned

    • Events
    December 23, 2025

    SME Awards To Spotlight The Real Engine Of Uk Growth – Small Businesses 

    December 22, 2025

    Businesses Step Up Their Washroom Standards As Loo Of The Year Figures Reveal Big Changes

    • Community
    December 29, 2025

    Care Sector Specialist Partners With Technology Platform To Tackle A Communication Crisis In Social Care

    November 24, 2025

    Cherishers Supports Those Spending Christmas Alone

    • Food & Drink
    December 8, 2025

    Exclusive Creative Nature Thins Launch On Austrian Airlines Long-Haul

    November 20, 2025

    High fat, salt, sugar – and fines: the franchise compliance risk

    • Books
    December 23, 2025

    Communication Expert Celebrates Book Launch At Oxford’s Saïd Business School

    December 9, 2025

    Good Bye: Why your last impression is just as vital as your first

    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
    • 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 & Tourism
    • Wellbeing & Mental Health
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact
    Copyright © 2025 SME Today.
    • ABOUT SME TODAY: THE GO TO RESOURCE FOR UK BUSINESSES
    • Editorial Submission Guidelines
    • Privacy
    • Contact

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