Why SMEs Should Review Recruitment & Onboarding Processes Now Ahead of the New Employment Rights Bill

As an SME leader, staying ahead of regulatory changes isn’t just a good idea, it’s essential for protecting your business, your team, and your bottom line. With the introduction of the new Employment Rights Bill, which is expected to come into effect in 2026, now is the perfect time to review and refine your recruitment and onboarding processes.

Here’s why.

What’s Changing?

The new Employment Rights Bill is designed to modernise and strengthen employee protections across several key areas, including:

• Day-one employment rights: employees will be entitled to certain rights from the moment they start, not after a qualifying period.

• Clearer written terms of employment: a requirement for clearer, more comprehensive employment terms issued upfront.

• Enhanced protections around working conditions, pay transparency, and job security.

• Greater accountability for recruitment practices, including fairer selection processes and inclusive hiring.

While these changes are positive for employees, they also mean added responsibilities for employers, with potential legal and financial risks if you fall behind.

Why You Need to Act Now

Waiting until the bill is enforced could leave your business exposed.

Proactively reviewing your recruitment and onboarding procedures now ensures you’re compliant, competitive, and operating with best practice before the legal changes take effect.

Here are five reasons you should prioritise this now:

Avoid Legal Risk & Penalties

Non-compliance with employment regulations can result in costly tribunal claims, fines, and reputational damage. Ensuring your processes align with the new requirements will reduce these risks significantly.

Improve Candidate Experience

A streamlined, transparent, and fair recruitment process reflects well on your business and helps you attract top talent, particularly important in competitive sectors or where there are skills shortages.

Retain Employees for Longer

Effective onboarding directly impacts employee engagement, productivity, and retention. With new rights coming in from day one, getting this stage right will prevent early turnover and the associated costs.

Protect Business Reputation

As regulatory expectations rise, both clients and candidates are increasingly conscious of how businesses treat their people. Demonstrating proactive compliance enhances your brand and trustworthiness.

Future-Proof Your Business

Updating your processes now ensures you’re not only ready for this bill but set up to respond quickly to future legislative changes, keeping your business agile and resilient.

What Should You Review?

Start by conducting a simple audit of your existing recruitment and onboarding workflows:

• Are your job adverts and selection criteria fair, unbiased, and accessible?

• Do you issue comprehensive written terms of employment by or before day one?

• Are your onboarding documents, policies, and processes compliant with upcoming requirements?

• Are line managers trained on new employee rights and how to implement them?

• Do your processes promote equal opportunity and fair treatment at every stage?

Next Steps for SME Owners

• Book time this month to review your current recruitment and onboarding processes.

• Consult with your recruitment business partner, HR advisor or employment lawyer to identify necessary updates.

• Communicate changes internally to hiring managers and teams.

• Refresh contracts, offer letters, and onboarding documents in line with best practise and the new legislation.

• Provide training where needed on updated rights and responsibilities.

Final Thought

This new Employment Rights Bill signals a broader shift towards a fairer, more transparent working environment. SMEs that embrace these changes early won’t just stay compliant, they’ll build stronger, more attractive businesses in the process.

Don’t wait until the deadline. Take action now and turn compliance into a competitive advantage.

If you’d like to benefit from specialist support to review your strategies and processes for recruitment and onboarding, get in touch.