There has been plenty of speculation about Andy Burnham and whether he could one day soon become Prime Minister. At the same time, the Employment Rights Act is already set to bring major changes for UK employers over the next couple of years.
For SMEs, the key question is not really who is in the headlines, but what these changes could mean in practice for day-to-day people management, compliance and risk.
The short answer is that employers should expect more rights for workers, more pressure on policies and processes, and more scrutiny of how businesses manage absence, dismissals, contracts and working patterns. Even if political leadership changes, the direction of travel on employment rights is unlikely to disappear overnight.
Why this matters now
The Employment Rights Act is one of the biggest changes to UK employment law in years. It is being phased in over time, which means employers may not feel the full impact immediately, but they will need to prepare well in advance.
That matters because small and medium-sized businesses often do not have a large HR team, or in-house legal support, to absorb these changes easily. For many SMEs, managers are already juggling recruitment, retention, absence, performance and day-to-day employee issues. New legal requirements will only add to that pressure unless businesses take a structured approach now.
There is also a political angle. Andy Burnham has been linked with leadership speculation, while Angela Rayner has been strongly associated with the workers’ rights agenda. But for employers, the more important point is that the reform agenda is already in motion. The practical challenge is not waiting to see who gets the top job. It is understanding what the changes mean and making sure your business is ready.
The big HR question
The big HR question is not really Burnham-specific. It is whether a new Labour leadership would accelerate or reshape the current Employment Rights Act programme. On the evidence available now, the core direction is already set:
- Unfair dismissal rights are due to tighten
- The Fair Work Agency is being created
- Sick pay and family leave are expanding
- Zero-hours protections are coming later in the timetable
For employers, this means the reforms are not hypothetical. They are already built into government timelines and planning.
What changes are already in motion
The government’s roadmap says key reforms are being phased across 2026 and 2027. These include:
- Changes to statutory sick pay
- Reforms to paternity and parental leave
- Collective redundancy protections
- Whistleblowing reforms
- The creation of the Fair Work Agency
From 1 January 2027, unfair dismissal protection is due to move to a six-month qualifying period, with the compensation cap lifted. Later reforms include guaranteed hours for zero-hours workers and stronger pregnancy and maternity dismissal protections.
For employers, that means more risk on probation, performance management, absence handling and restructuring decisions.
What the Employment Rights Act could change
Several of the planned reforms are likely to have a real impact on SMEs.
Unfair dismissal
One of the biggest areas of concern is unfair dismissal. The move to a six-month qualifying period could make it easier for employees to bring claims much earlier in their employment. That means probation periods, onboarding and early-stage performance management will matter more than ever.
Family leave, sick pay and working patterns
There is also likely to be more focus on family leave, sick pay and predictable working patterns. For employers, this could affect rota planning, absence management and the way working arrangements are agreed. Businesses that rely on flexible or variable-hour staff may need to review how they contract and communicate with their workforce.
Other areas to watch
Other areas to keep an eye on include fire and rehire, collective redundancy rules, and protections connected to zero-hours contracts. These are not just legal issues in the background. They affect real management decisions, especially where businesses are restructuring, dealing with cost pressures or trying to remain agile.
For SMEs, the risk is often not deliberate non-compliance. It is assuming that existing policies are good enough when the law has moved on.
Likely HR pressure points
For HR teams, the practical effect is less about a single headline reform and more about a wider compliance reset across contracts, policies, manager training and documentation.
The main operational issues are likely to be:
- Shorter route to unfair dismissal claims – onboarding and probation processes need to be tighter
- More exposure around sick pay and family leave – this affects absence policy design and workforce planning
- Greater scrutiny of zero-hours and variable-hours work – including guaranteed-hours rights and cancellation pay
- Higher compliance burden – on redundancy, whistleblowing, sexual harassment prevention and record-keeping
Could Burnham shift the direction?
Based on the reporting, Burnham is being discussed as a possible Labour leadership challenger, but there is no verified evidence that he has a different published employment law agenda that would reverse the Act.
The current reform package is already embedded in government timelines and guidance, so any change in leadership would more likely affect pace, tone or consultation detail than wipe the slate clean.
In other words, employers should plan on implementation, not assume repeal.
Andy Burnham and Angela Rayner
A lot of the political discussion has focused on whether Andy Burnham could eventually become Prime Minister, and what that might mean for Labour’s direction. In practice, his rise would probably matter more for tone and priority than for an immediate wholesale rewrite of employment law.
Angela Rayner is also an important figure in this conversation. She is widely reported as someone who could return to government, and Keir Starmer has publicly signalled she has a future role to play. She is specifically linked in reporting to the workers’ rights agenda and to pushing employment rights legislation.
If the question is whether Burnham would bring back Angela Rayner, there is no basis to say that. Her return is being presented as a Starmer decision, not something tied to Burnham.
That said, if Rayner does re-enter government, businesses could reasonably expect continued support for stronger employee protections rather than a move away from them.
Employers should be careful not to get distracted by personalities alone. The bigger issue is that the Employment Rights Act is already creating a new compliance landscape. Political change may influence timing, emphasis or messaging, but it is unlikely to remove the need for employers to get their house in order.
What to watch next
For employers and HR teams, the most useful watchpoints are:
- Any change to the 2027 unfair dismissal timetable or qualifying period
- Secondary legislation on zero-hours, fire-and-rehire and harassment duties
- Whether a leadership change alters consultation timing rather than the substance of reform
- Whether Angela Rayner re-enters government, given her strong association with the employment rights agenda
What employers should do now
The best approach for SMEs is to act early and keep things simple.
Review your core documents
Start by reviewing your core employment documents. Contracts, handbooks, probation policies, sickness policies, flexible working procedures and disciplinary processes should all be checked to make sure they are up to date and workable.
Support your managers
Next, look at how your managers handle day-to-day people issues. Many claims arise not because a policy is missing, but because managers are unsure how to apply it consistently. Training on recruitment, probation, absence, performance and difficult conversations can make a big difference.
Think about workforce planning
It is also sensible to think about workforce planning. If you use casual, variable or zero-hours arrangements, now is the time to understand how future changes could affect you. The same applies if you are planning redundancies, reorganisations or changes to terms and conditions.
Make sure you have support
Finally, make sure you have support. Many SMEs do not need a full HR department, but they do need clear advice, practical documents and someone to help them stay on the right side of the law.
Why taking action early helps
Employment law changes often create a scramble when businesses leave things too late. That can lead to rushed updates, inconsistent manager decisions and avoidable risk.
Taking action early gives you more control. It allows you to update policies gradually, train managers properly and put sensible processes in place before the new rules take effect. It also helps create a better employee experience, which matters just as much as compliance for businesses that want to retain good people.
For many SMEs, the real benefit is peace of mind. If your policies are clear, your managers are trained and your processes are consistent, you are in a much stronger position to deal with whatever comes next.
How we can help
 At Supportis, we help SMEs stay practical, compliant and confident when employment law changes. The Employment Rights Act is a good example of why that matters. These reforms may be phased in, but they are already changing the conversation for employers.
If you are an owner, people manager or HR lead, now is the right time to review your policies, train your managers and make sure your business is ready for what is ahead. A few simple steps now could save a lot of stress later.
For support with reviewing your HR documents, preparing managers or planning for upcoming employment law changes get in touch with our team today
