06th October 2025

Day One Rights Are Coming: Your Compliance Roadmap

The Proposed Employment Rights Bill represents what could become the most significant overhaul of UK employment law in a generation. With 15 million workers set to benefit from the new rights, affecting half of the UK workforce, businesses must prepare for sweeping changes that will fundamentally reshape how they manage their workforce.

While the Bill has not yet become law, the government has outlined a phased implementation plan that would see changes introduced through 2026 and 2027. For businesses operating in the engineering and manufacturing sectors, where contingent workforces, contractors, and flexible arrangements are commonplace, understanding these changes is essential for future compliance and workforce planning.

Understanding Day One Rights

“Day one rights” are employment protections that would apply from the first day of a job, without needing a qualifying period. In the past, workers had to be employed for a certain time before gaining these rights. The Employment Rights Bill changes this by giving immediate protection against unfair dismissal, as well as day one access to paternity leave, unpaid parental leave, and improved sick pay.

Key Changes and Timeline

The government has published a comprehensive implementation roadmap, with changes rolling out in distinct phases (subject to change):

April 2026: Workers will gain day one rights to paternity and unpaid parental leave, supporting families from the start of employment. A new Fair Work Agency will enforce labour rights and promote fairness.

Statutory sick pay will expand by removing earnings and waiting limits, extending coverage to around 1.3 million low earners and affecting payroll and absence policies.

The collective redundancy award will be doubled, giving greater financial protection to workers during large-scale job losses.

October 2026: Regulations will introduce fire and rehire restrictions. This has particular implications for businesses considering contract renegotiations or organisational changes.

Employers will be required to take "all reasonable steps" to prevent sexual harassment, with new obligations not to permit harassment by third parties. This extends protections to all work environments, including public-facing roles common in engineering and manufacturing industries.

2027: The most substantial changes arrive in 2027. Workers will gain day one protection from unfair dismissal, ending the exploitative use of zero-hour contracts, and improved access to flexible working. These changes fundamentally alter how businesses can structure employment relationships and manage their contingent workforce.

Bereavement leave becomes a statutory right, and enhanced dismissal protections for pregnant women and new mothers will safeguard job security during pregnancy, maternity leave, and return-to-work periods.

The Commercial Impact

Engineering and manufacturing firms often depend on flexible and project-based workforces. The ban on exploitative zero-hour contracts won’t end flexibility but will require predictable hours and stable income, forcing a rethink of workforce planning.

Day one unfair dismissal protection removes the two-year grace period, meaning dismissals from the start must follow fair procedures.

Extended sick pay, enhanced parental rights, and stronger protections will raise employer costs, especially for firms with large or temporary workforces, requiring adjustments to budgets and pricing.

However, businesses that adapt early can gain an edge by attracting skilled workers through stronger, fairer employment terms.

Click here to find your compliance checklist.

The Road Ahead

The Employment Rights Bill represents the most significant change to UK employment law in decades. Organisations that will embrace these reforms proactively can build stronger employment relationships, enhance their reputation in tight talent markets, and create more productive, stable workforces.

With proposed implementation beginning in early 2026 and extending through 2027, businesses have time to plan and adapt. Don't let compliance become a competitive disadvantage. Partner with specialists who understand both the legislation and your industry's unique challenges.

How Owen Daniels Can Support Your Compliance Journey

At Owen Daniels, we've been supporting engineering and manufacturing organisations through complex employment legislation changes for over a decade. We understand the unique challenges this sector faces, operating flexible workforce models.

Our compliance solutions help you navigate these changes whilst maintaining operational effectiveness and controlling costs.