Employment
Rights Bill

UNFAIR DISMISSAL

6 month Qualifying Period – The truth behind the government’s plan for unfair dismissal protection.

What the Bill Proposes:

The Employment Rights Bill proposes to repeal the two-year qualifying period and make unfair dismissal a right to all employees after 6 months service.

Effective from 1 January 2027

The Employment Rights Bill is currently making its way through Parliament, moving between the House of Commons and the House of Lords. With an agreement on the horizon, the Bill’s progress is imminent.

FIRE AND HIRE

What’s it all about and why is the Government cracking down on its misuse?

The Bill takes a firm stance on the misuse of fire and rehire by introducing automatic unfair dismissal rights in relation to: employers who dismiss employees because they don’t agree to varied terms such as pay, working hours, or pension arrangements; and dismissing an employee to replace them with someone on inferior terms. Exceptions will apply in cases of financial hardship.

The Bill remains under parliamentary discussion and the original October 2026 timeline for implementation may change.

ZERO-HOUR CONTRACTS

Everything you need to know to shape workforce planning

What the Bill Proposes:

Guaranteed Hours: A groundbreaking right to ‘guaranteed hours’—making make zero-hours contracts far less appealing to employers. This will apply to zero-hour contractors and workers on low-hour contracts (those with minimal guaranteed hours).

Right to reasonable notice: including the date, time, and number of hours expected to an employee. This applies to individuals on zero-hour contracts, workers with minimum hours and those without a set work pattern.

These changes were initially proposed to come into force in 2027, but Parliament are yet to pass the Bill.

The House of Commons and House of Lords are not in agreement and the House of Lords are pushing for amendments to the rules, particularly the inclusion of an opt-out for guaranteed hours and considering seasonal work.

FLEXIBLE WORKING

Flexible Working Reforms: New Restrictions on Employers’ Ability to Decline Requests

Employees have the right to request flexible working arrangements. Employers are required to consider these requests, but they can decline them based on one or more of eight statutory reasons. If an employer fails to follow proper procedure or unlawfully refuses a request, the penalty could be up to eight weeks’ pay, with a cap of £5,600.

The Bill brings an important change – refusals of flexible working requests must be reasonable. Employers will need to clearly outline in writing the reason for their decision together with their reason(s) for why they believe their refusal is justified – adding an extra layer of transparency.

When is this likely to come into effect?

These new rules are expected to come into effect in 2027.

EQUAL PAY

Equal Pay Reporting: New Obligations and Implications for Employers

The Bill proposes that employers with 250+ employees must publish “equality action plans”. These plans must outline concrete steps for reducing any gender pay gap to help work towards equality in the workplace. Employers will need to disclose the names of providers/employers of any contract workers used within their organisation.

This shift emphasises accountability and transparency, encouraging employers to be proactive in addressing pay inequality.

When is this likely to come into effect?

The government plans to consult on how to implement these new regulations, with voluntary adoption expected as early as April 2026. The new rules are likely to come into full effect in 2027, giving employers time to adjust to the reporting requirements.

FAMILY LEAVE

How the Employment Rights Bill Modernises Family Leave

The Bill proposes a number of changes to family-related rights at work, including recognising pregnancy loss before 24 weeks for statutory bereavement leave, introducing day-one rights to paternity and unpaid parental leave, strengthening job protection during and after maternity, adoption or shared parental leave, and extending protection against redundancy.

The government is consulting on these changes, with the measures expected to come into effect in 2027.

What does this mean for Employers and Employees?

Employers: Prepare to update policies and implement training. Strong family-friendly policies improve retention, wellbeing, and compliance.

Employees: You’ll have clearer entitlements, earlier access to leave, and better protection.
The Bill reflects a growing recognition that work and family life are deeply connected – the reforms aim to create a more understanding and equitable workplace.

MENOPAUSE

Menopause Matters: The New Workplace Standard

Large employers (with 250+ employees) must publish “Menopause Action Plans” setting steps they’re taking to support employees experiencing menopause. These plans will include measures like flexible working options, temperature, uniform adjustments, management training, and new procedures for absence and performance concerns linked to menopause.

Smaller employers will be encouraged to adopt similar measures through official guidance.

These changes are expected to be mandatory by 2027.

TRIBUNAL TIME LIMITS

‘3 months less one day’ for Tribunal claims? Not for much longer

What the Bill Proposes:

The Bill aims to give employees more time and extend the time limit from three months to six months. This would apply to the majority of claims, including those for discrimination, unfair dismissal, harassment, and other workplace issues.

The Bill proposes that this extended time frame will come into effect in October 2026 – although this remains uncertain until the Bill gains Royal Assent.

This is a welcome change for many, as it reduces the pressure of having to act so quickly. For employers, this extension means a longer period of uncertainty, as claims could be brought much later than before.

STATUTORY SICK PAY (SSP)

Changes to make SSP more accessible and supportive for workers.

The new Bill proposes some significant changes to make SSP more accessible and supportive for workers.

These reforms are set to take effect in April 2026.

Currently, statutory sick pay (SSP) kicks in on day four of an employee’s sickness, meaning workers miss out on pay for the first three days they’re off sick. On top of that, to qualify for SSP, employees need to earn above the weekly lower earnings limit, which is currently set at £123.

Here’s what it includes:

• No more waiting: SSP will be available from day one of illness, meaning no unpaid waiting period.
• Support for all: The weekly earnings threshold of £123 will be scrapped, so all employees, no matter what they earn, will be eligible for SSP. For those on lower incomes, SSP will be paid at 80% of their weekly earnings.