Construction

Less flexibility, more complexity

Construction thrives on adaptable staffing to meet shifting project demands, but the ERB’s push for job security could tighten the reins. Whilst the idea behind the ERB is to create more job security, this in turn will limit this flexibility for construction employers.

One notable change is the duty to offer guaranteed hours to workers which reflect the hours they have worked over a set “reference period” (yet to be determined), which shall also extend to agency workers. Subsequently increasing operational costs and introducing further complexity in workforce management and contractual arrangements. Therefore employers will need to monitor working patterns closely and reassess their staffing models and workforce planning strategies.

Stronger employee rights, tougher employer challenges

The ERB plans to remove the two-year qualifying period required to bring an unfair dismissal claim, introduce a six-month limitation period and introduce an initial period of employment (i.e., a statutory probationary period).

While these reforms aim to enhance employee protections, they present significant challenges for employers in the construction sector, who already operate under intense pressure to meet tight deadlines and deliver complex projects efficiently. As such, maintaining a high-performing and agile workforce is critical to project success.

However, the proposed changes will likely increase the administrative and resource burden associated with managing short-service terminations, while also extending the period of uncertainty following dismissals. Which will likely disrupt project continuity and hinder cost control. As a result, construction employers will be required to navigate a more complex legal landscape when managing performance, conduct and termination decisions, even during probation.

Trade unions: A louder voice on site

Several changes are proposed which will likely increase union presence and activity across construction industry. Simplified recognition procedures and enhanced access rights may lead to more frequent collective bargaining and union engagement, even in workplaces with low union membership.

In addition, reduced notice periods for industrial action and stronger legal protections for striking workers could heighten the risk of disruption to project timelines and delivery. Furthermore, new obligations around workplace access and support for union representatives may introduce operational and administrative complexities, particularly for employers managing large or multi-contractor environments.

How you can prepare

Construction employers should be looking to proactively review their industrial relations strategies, update policies and prepare for heightened engagement with trade unions to mitigate potential risks and ensure business continuity.

Logistics

The ERB introduces sweeping reforms with potentially major implications for employers in the logistics sector. Key changes include enhanced protections for agency and zero-hours workers, the regulation of umbrella companies – which may be relevant for self-employed couriers, and broader consultation thresholds across multiple sites when conducting collective redundancy exercises. Trade union presence in the sector may also increase due to simplified recognition rules and expanded access rights.

How you can prepare

Employers must prepare for day-one unfair dismissal rights and extended tribunal timeframes. These developments require proactive review of workforce models, industrial relations strategies, and HR policies to ensure compliance and operational resilience.

Retirement Living

The ERB will have implications for the Retirement Living sector, due to the impact it will have on staffing models typically used by this sector.

The flexible employment arrangements usually associated with retirement living are likely to be impacted by these changes, as well as increased business costs. Key changes include:

• Stricter regulation of zero-hour contracts, including offering those on zero hours contracts guaranteed hours based on their average hours, and providing zero hours/irregular workers with reasonable notice of shifts and changes of shifts, including cancellation (similar provisions will also apply to agency workers).
• Flexible working changes, including requiring any refusal to flexible working requests to be “reasonable”.
• “Day one” unfair dismissal rights, which will make robust probationary period provisions and disciplinary and dismissal procedures vital/
• Family leave and statutory sick pay becoming “day one rights”.
• Greater trade union rights.

How you can prepare

Retirement living providers will need to re-evaluate their policies and procedures and should consider the implications the changes may have on agency worker relationships versus more permanent staffing models.

How we can support you

If you’re preparing for the changes introduced by the Employment Rights Bill, our team is here to help. Get in touch with Lucy Gordon or Laura Oxley for tailored advice.

To find out more about the Employment Rights Bill and the timeline for implementation, read our previous article.