2027 reforms: Final changes under the Employment Rights Bill
13th Oct 2025
Author: Mohammed Balal
What changes are coming in 2027 under the Employment Rights Bill?
The final stage of the Employment Rights Bill introduces gender pay gap reporting, menopause action plans, enhanced protection for pregnant workers, statutory bereavement leave, and further restrictions on zero-hours contracts.
By 2027 the Employment Rights Bill will reach full implementation. This final phase builds on the reforms of 2025 and 2026, with a clear focus on workplace equality, dignity and job security, particularly for those in vulnerable or insecure roles.
In this article, Employment Law specialist Mohammed Balal summarises what is changing in 2027 and what employers need to do to remain compliant and supportive of their workforce.
What is changing in 2027?
➤ Mandatory gender pay gap reporting and menopause action plans
From April 2026, large employers (250+ staff) will be encouraged to adopt these policies on a voluntary basis. In 2027, they become mandatory.
- Employers must publish gender pay gap reports annually
- A formal menopause action plan must be in place to support affected employees
- Action plans must include adjustments, support mechanisms, and clear communication channels
Why it matters:
This aligns with broader efforts to improve gender equality and retain women in the workplace during mid-life and later career stages.
➤ Enhanced rights for pregnant workers
The Employment Rights Bill strengthens protections for employees who are pregnant or returning from maternity leave.
Key changes:
- Stronger safeguards against dismissal or detriment
- Requirement for reasonable adjustments during pregnancy
- Clear employer duties to ensure a safe working environment
What this means:
Employers will need to review risk assessments, adjust working conditions where needed and train line managers on pregnancy-related rights.
➤ Statutory bereavement leave introduced
For the first time, the UK will introduce paid bereavement leave for employees who experience the loss of a close family member.
- Minimum entitlement will be outlined in forthcoming guidance
- Leave must be taken within a defined period following the bereavement
- Employers must offer the time off without fear of penalty or dismissal
Why it matters:
This reform brings UK law more in line with global standards and reflects growing awareness of the importance of compassionate support at work.
➤ Stronger protections for workers on zero-hours contracts
Further restrictions will be introduced in 2027 to reduce misuse of zero-hours contracts, including:
- The right to request fixed or guaranteed hours after a qualifying period
- Clearer entitlement to minimum hours or predictable schedules
- Stricter limits on using zero-hours contracts as a long-term employment model
Impact on employers:
These changes will require closer tracking of hours worked, increased scheduling consistency, and revised employment contracts.
➤ Regulation of umbrella companies
Umbrella companies, often used by recruitment agencies and contractors, will now face direct regulation to ensure fair treatment of workers.
This includes:
- Transparency over pay rates and deductions
- Clear written contracts
- Proper handling of tax and employment rights
Why it matters:
The aim is to reduce exploitation and ensure that those working through intermediaries enjoy the same basic protections as directly employed staff.
What should employers do now?
Ahead of 2027, employers should:
- Audit gender pay data and begin drafting action plans for menopause support
- Review workplace risk assessments and policies affecting pregnant workers
- Plan for how bereavement leave will be structured and communicated
- Identify any zero-hours workers and evaluate if their arrangements need to change
- If using umbrella companies, carry out due diligence and review contracts
How Butcher & Barlow can help
The final stage of the Employment Rights Bill is just as important as the first. As the focus shifts toward inclusion and employee wellbeing, employers have an opportunity to lead with empathy, clarity and compliance.
Our Employment Law Team is here to help with:
- Equalities audits and gender pay gap reporting
- Drafting menopause and pregnancy support policies
- Reviewing contract models for zero-hours workers
- Navigating bereavement and compassionate leave
If you need tailored guidance ahead of the 2027 reforms, please contact us today.
If you missed our previous articles, they are available through the links below:
A new era for workers’ rights – an introduction to the Employment Rights Bill: https://www.butcher-barlow.co.uk/news/employment-law-hr/introduction-to-the-employment-rights-bill-butcher-barlow/
What is changing first? Immediate reforms under the Employment Rights Bill: https://www.butcher-barlow.co.uk/news/employment-law-hr/what-changes-first-under-the-employment-rights-bill-butcher-barlow/
What is changing in April 2026 under the Employment Rights Bill?: https://www.butcher-barlow.co.uk/news/employment-law-hr/employment-rights-bill-april-2026-changes-explained-butcher-barlow/
October 2026: New protections and duties for employers under the Employment Rights Bill:https://www.butcher-barlow.co.uk/news/employment-law-hr/october-2026-employment-law-changes-butcher-barlow/
- Mohammed Balal
The information in this article was correct at the time of publication. The information is for general guidance only. Laws and regulations may change, and the applicability of legal principles can vary based on individual circumstances. Therefore, this content should not be construed as legal advice. We recommend that you consult with a qualified legal professional to obtain advice tailored to your specific situation. For personalised guidance, please contact us directly.