Workforce planning in the energy sector: navigating the Employment Rights Bill

With the Employment Rights Bill (ERB) currently working its way through the legislative process, employers in the UK should now be preparing to face the biggest change to employment rights in a generation.

The government has published a comprehensive roadmap setting out how and when it will deliver this new package of workers’ rights. As the clean energy sector prepares itself for furthering Britain’s ambition to become a clean energy superpower, and to reach net zero greenhouse gas emissions by 2050, employers should be mindful of the impact the government’s package of workers’ rights will have when workforce planning.

Achieving net zero targets could be made harder than anticipated with the emergence of new roles and current skills gaps. The National Grid estimates 400,000 roles are needed to build the necessary transition workforce, and while these roles are welcome, a job transition of this scale will always come with unique challenges. It is important for employers across the clean energy sector to carefully consider the impact and consequences of the ERB as they prepare for the transition.

The government’s roadmap provides employers with a clear timeframe of when the proposed changes will come into effect. The ERB is currently at House of Lords stage, with the third reading of the bill having taken place on 3 September 2025.

From early 2026, we will begin to see the first significant effects of the ERB come into force. Employers will need to be prepared to adapt to the following changes:

Whistleblowing protections – including making it explicit that sexual harassment can be the basis for a protected disclosure.
‘Day 1’ paternity leave and unpaid parental leave.
Trade Unions – simplifying the trade union recognition process, including providing better access arrangements for unions and dealing more effectively with unfair practices, and the introduction of electronic and workplace balloting.
Changes to Statutory Sick Pay – removing the lower earnings limit and removing the waiting period.
Fair Work Agency body established – this body is being established to enforce labour rights and promote fairness in the workplace.

From October 2026, the most significant changes will then come into effect as follows:

Fire and rehire – ending unscrupulous ‘fire and rehire’ practices by considering dismissals for failing to agree to a change in contract as automatically unfair, except where businesses genuinely have no alternative.
Third-party harassment – introducing an obligation on employers not to permit the harassment of their employees by third parties to extend protections to all work environments, including public-facing roles.
Trade Unions – a package of trade union measures including new rights and protections for trade union representatives, extending protections against detriments for taking industrial action and strengthening trade unions’ right of access, including providing for digital access.
Sexual harassment – requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees.

In 2027, we will see the final changes from the ERB come into effect:

Day 1 right to unfair dismissal protection – arguably the most significant change to employment rights is the day one right to protection against unfair dismissal. Where there is currently a two year ‘qualifying period’ for employees to bring a claim for ordinary unfair dismissal, come 2027, employers will be required to have a fair reason to dismiss employees, and follow a fair process when doing so, to avoid employees being able to bring a claim for unfair dismissal from the first day of their employment.
Zero-hours contracts – ending zero hours contracts by introducing rights to guaranteed hours, reasonable notice of shifts, and payments for short-notice cancellation of shifts, with corresponding rights for agency workers.
Enhanced dismissal protections for pregnant women and new mothers – introducing new protections against dismissal for pregnant women, mothers on maternity leave, and mothers who return to work for a six-month period after they return to work.
Further harassment protections – specifying reasonable steps which will help determine whether an employer has taken all reasonable steps to prevent sexual harassment, in order to provide clearer guidance and stronger enforcement against harassment.
Flexible working – strengthening the existing ‘day-one’ right to request flexible working, by requiring employers to explain the grounds on which they’ve denied a request, and adding the requirement that a rejection of a request be reasonable.
Bereavement leave – introducing a statutory right to unpaid bereavement leave.

With the implementation of the significant changes to be introduced by the ERB rapidly approaching, employers in the energy sector should be workforce planning in anticipation. Employers should ensure they are comfortable and confident with what these changes will mean for their business. It may be prudent to accelerate investment in the workforce to stay ahead of the curve as the UK furthers its goals in reaching net zero.

If you would like to discuss any of the issues raised in this article or if you have any questions relating to the Employment Rights Bill, please get in touch with a member of our Employment team.

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