In Legal

Follow this topic

Bookmark

Record learning outcomes

These changes have practical implications for independent pharmacy contractors who rely on small, flexible teams to deliver patient care in a highly regulated environment. Richard Hough and Amber Ward explain…

The Employment Rights Bill (ERB) received Royal Assent on 18 December 2025, marking the most significant overhaul of workplace rights in decades. While the government’s roadmap allows time for consultation and secondary regulations, pharmacy employers should not delay.

From April 2026, family leave and sick pay reforms will come into effect, representing a major shift in employee entitlements. Employees will gain day-one rights to paternity leave and unpaid parental leave, removing the previous qualifying periods that often caused confusion and inconsistency.

Statutory Sick Pay (SSP) will also be reformed through the removal of the lower earnings limit and the three-day waiting period, ensuring that even lower-paid staff receive immediate support when unwell.

Plan ahead for cover and staffing flexibility to avoid disruption

These changes will have a direct impact on workforce planning in pharmacy, where small teams and locum reliance mean any absence can disrupt service delivery. Given the reforms make it easier for employees to take leave from day one, pharmacy contractors need to plan ahead for cover and staffing flexibility to avoid disruption.

At the same time, the Fair Work Agency will launch, introducing a new layer of oversight and compliance for employers. Electronic and workplace balloting will be introduced, modernising union processes, and whistleblowing protections will be strengthened to encourage transparency and accountability.

For pharmacy contractors, this means auditing family leave policies and HR systems now in preparation. Locum-heavy models and small teams will need contingency planning for sudden absences, and whistleblowing procedures should reflect enhanced protections.

Further changes will follow in October 2026, including a ban on fire-and-rehire practices, extended Employment Tribunal time limits from three to six months, and a new statutory duty to take “all reasonable steps” to prevent sexual harassment, including harassment by third parties.

Pharmacies, as public-facing businesses, must also address the risk of harassment from patients or carers, which is often overlooked in policy frameworks.

A day-one right to bereavement leave will be introduced

Robust policies and staff training will be essential to demonstrate compliance, and redundancy strategies should be reviewed to ensure they do not rely on fire-and-rehire tactics, which will soon be unlawful.

By 2027, the qualifying period for unfair dismissal will fall to six months, and the cap on compensatory awards will be removed, significantly increasing potential liability for employers.

A day-one right to bereavement leave will be introduced, alongside enhanced protections for pregnant workers and stricter rules on flexible working requests.

Larger employers with 250 or more staff will also need to publish gender pay gap and menopause action plans, signalling a growing emphasis on workplace equality and wellbeing.

For pharmacy contractors, these changes will require a review of recruitment and performance management processes, updates to employment contracts, and preparation for equality and menopause reporting. Flexible working requests may increase, which could be a further challenge for pharmacies.

The ERB represents a cultural shift in employment law, from reactive compliance to proactive responsibility. Pharmacy employers who act early by auditing policies, updating procedures and planning for operational resilience will be best placed to navigate these changes and maintain strong employee relations.

Those who delay risk not only legal exposure, but also reputational damage in a sector where trust and professionalism are paramount.

Richard Hough is a partner and head of Healthcare at Brabners LLP and a former pharmacist. His co-author Amber Ward is an employment solicitor at Brabners.