The Great British Employment Rights Bill has almost completed its passage through the House of Lords. This is set to be amended as it returns to the House of Commons. The amendment will allow time off for individuals affected by pregnancy loss, regardless of the stage.
The current Statutory Parental Bereavement rules allow a maximum of two weeks' leave for the bereavement of a child under 18 or a stillbirth after 24 weeks of pregnancy.
The amendment seems to be along the lines of the changes to Northern Irish employment law changes which will also extend the statutory entitlement to miscarriages from April 2026. This is separate from Northern Ireland’s own Employment Rights Bill.
So, the above announcement about the extension of Statutory Parental Bereavement Leave adds to the information given in July 2025’s Wages Wednesday. At this time, we discussed the publication of two reports that give us an indication of when to expect broader employment law changes which will impact payroll. We detail what we know below:
UK-Wide
The Great British Employment Rights Bill will introduce Statutory Sick Pay (SSP) reforms from April 2026.
Originally, the reforms were set to apply in Great Britain only, however, the Bill mirrors the amendment in Northern Ireland.
Northern Ireland
We must not forget that Northern Ireland is part of the UK and has its own Employment Rights Bill. On 28 April 2025, responses were published to their ‘Good Jobs’ consultation in July 2024. This Bill will introduce a range of measures, some of which will mirror existing rights in Great Britain.
On the same day, ‘The Way Forward’ document was published by the Department for the Economy which advises that the Bill will be introduced in 2026 with the expectation that it will achieve Royal Assent before the current Assembly session ends in May 2027. This means:
- Some measures will come into force when the Bill achieves Royal Assent and becomes an Act of the Northern Ireland Executive. This implies they will be effective in 2026 (though employment law changes are often introduced in October);
- Some measures will come into force because of improved guidance or new Codes of Practice; although
- Some measures will not come into force until after elections in May 2027, i.e. in the next Assembly session. This will require secondary legislation in the form of Regulations and assumes that the next Assembly will agree to the changes
ICB will keep you updated with the progress of this legislation, always recognising that Northern Ireland is part of the UK.
Great Britain
On 01 July 2025, the UK Government published a Policy Paper ‘Implementing the Employment Rights Bill’. The document sets out a phased delivery plan for the wide range of measures in the Bill. This is good to see, as it would be impossible for employers to understand an implement the changes all at one time.
ICB summarises the key points for payroll and their expected implementation date:
Upon Royal Assent
The Employment Rights Bill will repeal trade union reforms and introduce new protections that prevent dismissal for participating in industrial action.
Employers need to be aware of this but it does not directly impact bookkeepers or other payroll professionals.
April 2026
Whilst employment law reforms are generally effective in October, those that impact payroll are usually effective from the start of the tax year. The ones we need to look for are:
- The establishment of the Fair Work Agency (FWA) who will assume monitoring of the National Minimum Wage and SSP;
- Statutory Paternity Leave will become a day one right, achieved by removing the 26-week qualifying period of employment;
- Also, Statutory Paternity Leave will be allowed to be taken after a period of Shared Parental Leave, something that is not allowed now;
- Unpaid parental leave (the 18 weeks) will also become a day one right, achieved by removing the 52-week qualifying period of employment;
- SSP reforms will come into force, essentially meaning it is payable from day one of sickness
October 2026
Perhaps the issue that will impact employers the most is the strengthening of the law regarding the distribution of tips, service changes and gratuities.
On 01 October 2024, The Allocation of Tips Act (the Tipping Act) and a statutory Code of Practice on the Fair and Transparent Distribution of Tips came into force. However, from October 2026, the Employment Rights Bill will make it mandatory for employers, when developing their tipping policies, to consult with workers at the place of business. This will be via trade union representatives or other elected representatives where possible, otherwise with workers directly.
Further, there will be a statutory requirement to update the policy at least once every three years.
Whilst employment legislation does not make any changes to the way tips, service charges and gratuities are taxed, it may make changes to the way in which they are allocated.
2027
No month is given for the implementation of the following, though we assume April:
- Gender Pay Gap reports will have to include menopause action plans (for employers with 250 employees or more). This is not a payroll action;
- Statutory Parental Bereavement Leave will be extended to cover the bereavement of a ‘person’ rather than the current child under the age of 18. Simply, this means that the statutory entitlement to leave and, possibly, pay will be extended to more employees;
- Umbrella companies will face regulation; and
- Protections will be introduced to prevent abuse of the zero-hour contracts
For Bookkeepers
Rest assured that ICB will keep you updated with the changes that will affect you and / or your clients.
ICB Comment
ICB welcomes the publication of anticipated timelines for the implementation of provisions in the Employment Rights Bills in Great Britain and Northern Ireland. As a UK-wide profession, it is important bookkeepers recognise both employment law jurisdictions, especially where the legislation differs.
We acknowledge that differences may be an impact of the devolution of employment law, although a UK-wide profession works best if provisions are mirrored, not least for employers and software developers.
