Upcoming Changes

Unfair dismissal​

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The change to reduce the unfair dismissal qualifying period to six months comes into force on 1 January 2027 but employers should be aware that employees who have six months or more service on 1 January 2027 will have a right to claim unfair dismissal. This means that employees hired on or before 1 July 2026 will be able to claim unfair dismissal from 1 January 2027 as they will meet the new six-month qualifying period. 

Strengthened protections against Harassment ​
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The Act introduces strengthened protections against workplace harassment, including third-party harassment which will become a standalone claim. Employers will be required to take "all reasonable steps" to prevent harassment, raising the standard from the previous requirement of "reasonable steps." 
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Employment Tribunal Time Limits​

The time limits to make a claim to an employment tribunal will be extended from 3 months to 6 months for the majority of claims (including discrimination and unfair dismissal).
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Tightening Tipping Laws​
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It will be mandatory for employers, when developing their tipping policies, to consult with workers at the place of business. Employers will also be required to review their tipping policy at least once every three years.

Trade Unions

Employers will be under a requirement to provide a statement to an employee, at the same time as their statement of main terms, to inform them that they have the right to join a trade union.

Further changes will strengthen trade unions’ rights of access, provide new rights and protections for trade union reps and ​extend protections against detriments for taking industrial action.

Trade Union Access to workplace rights and enhanced protections for union activity​
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The Act will be updating rules on a trade unions right of access to the workplace, provide a new right to reasonable accommodation and facilities for trade union reps carrying out their duties, a new statutory role of union equality and protection against detriment.  
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Unfair Dismissal and Day-1 rights​

The qualifying period for making a claim of unfair dismissal reduces from two years to 6 months.

This means employers will need to assess new starters more robustly in the first few months and are less likely to give them additional times to meet standards as this would increase risk and require full procedures around unfair dismissal to be carried out plus the general risk of a claim. 
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Removal of unfair dismissal cap​

The cap of 52 weeks wages or £118,223.00 (whichever is lower) for the compensatory unfair dismissal award will be removed.
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Restrictions on Fire and Rehire Practices​

The Act seeks to restrict the controversial practice of "fire and rehire," where employees are dismissed and re-engaged under new terms. It will be automatically unfair to dismiss an employee for refusing to accept a contract variation unless for limited and narrow exceptions where the employer can show evidence of financial difficulties that would mean the business could not carry on as a going concern without varying the contractual terms.  

Gender Equality & Menopause Action Plans​

Mandatory requirement for employers with 250+ employees to publish gender equality action plan(s) to address both the gender pay gap and menopause support​

Flexible Working as a default right​

Making flexible working a default right, requiring employers to grant flexible working requests unless it is unreasonable to do so. Employers must provide clear reasons for any refusal, ensuring transparency and fairness in the decision-making process. 
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Zero-Hours Contracts and Guaranteed Hours​
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The Act addresses the issue of zero-hours contracts by requiring employers to offer guaranteed-hours contracts to workers who regularly work more hours than their contracts indicate. This gives zero-hours and 'low-hours' workers a right to a guaranteed hours contract which reflect the hours they regularly work. This will be based on a set reference period which is likely to be 12 weeks The reference period and definition of a low- hours worker will be set out in future regulations.

This change aims to provide greater job security and predictability for workers. Employers must also give reasonable notice of any shift changes and compensate workers for late cancellations. Compensation has to be proportionate to the notice given for any shifts cancelled or curtailed. This ensure fair treatment and reduces any exploitation of zero-hours contracts.​

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These rights will also be extended to agency workers

Sexual Harassment ​
 

Introduction of a power to enable regulations to specify steps that are to be regarded as "reasonable", to determine whether an employer has taken all reasonable steps to prevent sexual harassment.

Collective Redundancy ​
 

New threshold test whereby employers proposing 20 or more redundancies ‘at one establishment’ OR a certain number/percentage of employees are affected across the employing entity must carry out collective consultation. This new threshold test is yet to be determined and will be set out in regulations.

Bereavement Leave ​
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The Act will expand the scope of bereavement leave to apply more broadly than on the loss of a child, introducing a new day-one right to at least one week of leave following the loss of a loved one. 

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Bereavement leave will also be extended so it is available to parents who experience a miscarriage before 24 weeks of pregnancy.

Increased dismissal protection for pregnant workers​

There will be increased protections against dismissal for pregnant workers and new mothers, as part of the Employment Rights Act. Specifically, it will be unlawful to dismiss a pregnant woman or new mother during or for six months after their return from maternity leave, except in specific circumstances. Protection will also apply to other forms of family friendly leave such as adoption leave, shared parental leave, neonatal care leave and bereaved partners paternity leave.