Respect at Work Bill: A Startup Playbook for 2026

Second readings rarely make startup founders’ priority lists. But the Bullying and Respect at Work Bill, due for a second reading on 9 January 2026, is the kind of “slow-moving” legislation that can quietly reshape how you hire, manage, and scale.

Most companies get this wrong: they treat bullying as a culture issue or a legal issue. It’s both. And for startups—especially those hiring fast, bringing in international talent, and stretching managers beyond their experience—this Bill is a warning shot. If it progresses, it won’t just change what happens in an employment tribunal; it will raise expectations for what “good management” looks like in the UK.

This post breaks down what the Bill is trying to do, why it matters for skills and workforce strategy, and how to prepare without turning your startup into a policy factory.

What the Bullying and Respect at Work Bill is trying to change

Answer first: The Bill aims to define workplace bullying more clearly, introduce a statutory Respect at Work Code, and give employment tribunals and the Equality and Human Rights Commission (EHRC) stronger tools to hold employers accountable.

At a practical level, the direction of travel is simple: employers will be expected to prevent bullying, not just react to it.

1) A clearer legal definition of “bullying” (beyond harassment)

Right now, bullying is often handled through internal policies and general duties of care, while the legal system focuses heavily on harassment connected to protected characteristics (race, disability, sexual orientation, etc.). The Bill’s intent is to clarify bullying—including conduct described as offensive, intimidating, malicious or insulting, especially where there’s an abuse of power that undermines or humiliates someone.

That distinction matters for startups because “bullying” commonly shows up in scaling pain:

• a stressed manager using humiliation as “performance management”
• a founder repeatedly shouting in open channels “because urgency”
• systematic exclusion from meetings (“they’re not a culture fit”)
• jokes and “banter” that land as intimidation when you’re new, junior, or on a visa

One-line reality check: intent won’t save you—impact and pattern are what get scrutinised.

2) A statutory Respect at Work Code that tribunals can lean on

A statutory code changes the game because it creates a reference point for “what good looks like”. If the Respect at Work Code is developed and monitored by the EHRC, it becomes a practical benchmark for:

• what training is expected
• what good grievance processes look like
• how employers should investigate complaints
• how culture and behaviour are monitored

For a startup, this shifts risk from “we handled it informally” to “we didn’t meet the expected standard”. Informal handling is common in early-stage companies—and it’s also how issues become messy, personal, and inconsistent.

3) More enforcement options (tribunals + EHRC scrutiny)

The Bill signals a stronger role for enforcement. Employment tribunals may be more inclined to take the code into account. The EHRC may have powers to investigate organisational culture and push employers to act—through policy updates, training, and changes to grievance procedures.

This matters because startups often assume risk only exists when they’re “big enough to be noticed.” Regulators don’t work that way. Risk appears when a complaint is well-documented, emotionally compelling, and easy to explain. Size doesn’t protect you.

Why this legislation is a growth issue, not just an HR issue

Answer first: A respect-driven culture is a growth asset: it improves retention, protects your employer brand, and helps you recruit scarce skills—especially in a tight UK talent market.

This post sits in our Immigration, Skills & Workforce series for a reason. Workforce strategy isn’t only about salaries and visas. It’s also about whether people feel safe enough to do great work.

Employer brand now behaves like product reviews

Startups live and die by reputation—among candidates, investors, partners, and customers. Culture stories spread quickly because they’re easy to repeat:

“Great product, but the CEO screams at people.”

That single line can wipe out months of recruitment marketing. And once it’s out there, it becomes part of how your company is “explained” in the market.

Bullying hits the exact roles you can’t afford to lose

The talent you’re fighting for in 2026—engineers, product managers, growth specialists, data talent—has options. When they leave, it’s rarely a clean exit. You also lose:

• institutional knowledge
• delivery momentum
• psychological safety across the team (“if it happened to them, it can happen to me”)

Replacing a specialised hire is expensive. A common UK recruiting benchmark is that replacement costs can run into months of salary once you factor in recruiter fees, time, ramp-up, and lost productivity. Even if your numbers vary, the direction is consistent: attrition is one of the most expensive “silent” costs in scaling.

Immigration and mobility add vulnerability you must account for

If you hire internationally (or plan to), know this: sponsored workers may feel they have less room to complain, especially early on. That creates a dangerous dynamic where problems fester until they explode—often right when you’re fundraising, launching, or trying to hit targets.

A respect-first approach isn’t “soft.” It’s operational risk control.

The startup risk shifts: where founders get caught out

Answer first: The biggest risk is inconsistent management—good intentions, poor process—because the Bill points toward clearer expectations and more formal scrutiny.

Here are the patterns I see most often in early-stage teams.

“High standards” confused with intimidation

High standards are great. Intimidation isn’t. The difference is behavioural:

• High standards: clear goals, feedback tied to work, predictable consequences
• Intimidation: humiliation, threats, sarcasm, or exclusion used as pressure

If you want high performance, build clarity and coaching, not fear.

Informal grievance handling that backfires

Startups love informal resolution: “Let’s just talk it out.” Sometimes that works—until it doesn’t.

When there’s a power imbalance (founder vs employee, manager vs junior, sponsor vs visa holder), informal handling can look like:

• minimising the complaint
• lack of confidentiality
• retaliation (even subtle)
• no record of what happened

A strong grievance process isn’t bureaucracy. It’s how you prove you acted fairly.

Slack/Teams and hybrid work make bullying easier to evidence

One unintuitive shift: remote and hybrid work can make bullying easier to document. Screenshots, message history, meeting recordings, and calendar patterns build a timeline quickly.

If your managers are “venting” in public channels, you’re creating evidence—without realising it.

How to prepare now (without overbuilding policy)

Answer first: Start with four moves: define behaviours, train managers, standardise grievances, and measure culture. Do these well and you’ll be ready for most legal outcomes.

The Bill is still early-stage and may change. So don’t hard-code legal wording that you’ll later need to unwind. Build a flexible framework.

1) Write a Respect at Work policy that focuses on behaviours

A useful startup policy is short, specific, and enforceable. Aim for 1–2 pages plus an appendix for procedure.

Include:

• a plain-English definition of bullying (unwanted behaviour that undermines, humiliates, or intimidates)
• examples relevant to your environment (meetings, Slack, sales floors, customer calls)
• reporting routes (manager, skip-level, People/HR, anonymous option)
• what happens next (triage, investigation, timelines)
• anti-retaliation statement with real consequences

Keep the wording adaptable, for example:

“This policy will be updated to reflect any statutory definition introduced by law or guidance.”

2) Train managers first (then the whole company)

If you only do one thing this quarter, do this.

Manager training should cover:

• early warning signs (exclusion, isolation, repeated “jokes”, unexplained turnover)
• how to receive a complaint without making it worse
• confidentiality boundaries (what they can and can’t promise)
• documenting incidents factually
• what not to do (investigating alone, confronting the accused emotionally, “mediating” power imbalances)

Then run a shorter all-hands session so everyone shares the same language for what’s acceptable.

3) Make grievance handling boring, consistent, and fast

Speed matters. Delays feel like indifference.

Create a simple internal pack:

• intake form (what happened, when, who, evidence)
• investigation checklist (interviews, evidence review, notes)
• timeline standards (e.g., acknowledge within 48 hours; initial assessment within 5 working days)
• outcome templates (findings, actions, appeal route)

The goal isn’t to “lawyer up” every complaint. It’s to remove improvisation.

4) Monitor culture like you monitor churn

If the EHRC gains more ability to examine culture, you want signals early.

Track:

• regretted attrition by team/manager
• sickness absence patterns
• engagement survey items on respect and inclusion
• spikes in internal transfers away from a manager
• repeated complaints (even if “unsubstantiated”)

A simple monthly check is enough at seed stage. As you scale, build a quarterly dashboard.

5) Check your insurance and your People capacity

Some policies focus on harassment claims; bullying-specific exposure may differ. Also be honest about bandwidth: if you have no dedicated People leader, decide now who owns investigations and training.

A common failure mode is delegating sensitive issues to the most “available” person.

People Also Ask: quick answers founders need

Will this Bill definitely become law?

No. It’s in early stages and could change. But it’s a strong signal of where UK workplace expectations are heading.

Does this only apply to big companies?

No. The cultural risks show up earlier in startups, and a single serious complaint can trigger major distraction and reputational damage.

What’s the fastest, highest-impact step?

Manager training plus a consistent grievance process. Policies without capability don’t protect you.

What to do next (January 2026 checklist)

The Bill’s second reading date is a good forcing function. Give yourself a two-week sprint and leave the perfect version for later.

1. Draft a one-page Respect at Work policy focused on behaviours.
2. Run a 90-minute manager workshop on complaints and documentation.
3. Publish a simple grievance timeline and templates.
4. Add two culture questions to your next survey: “I’m treated with respect” and “I feel safe raising concerns.”

The bigger point is this: a respectful workplace is how you keep scarce skills, protect your employer brand, and scale without drama. Legal compliance is the floor. Your growth strategy should aim higher.

Where do you think your startup is most exposed right now—manager capability, process, or culture signals?