“The passing of this bill, after a difficult passage through parliament, marks a significant shift in employment rights and the rights of trade unions and it has been a key pillar of the government’s agenda. It was finally achieved through the process of consultation and pragmatic compromise on key issues around the early stages of employment. This approach will continue to be needed on the many details still to be worked through that will now be part of secondary legislation.
“It now provides clarity for employers and sets a timeline for businesses to prepare for the many changes, and in reviewing key people management practices and policies, some of which must start now. The backdating of the now agreed six-month qualification period for unfair dismissal, which comes in to effect from January 2027, means it applies to anyone who has by then completed at least six months in employment, emphasising the importance of clear accountabilities, performance management and feedback practices, and policies.
“There remain many concerns on key provisions within the bill, including compensation caps for unfair dismissal, the need for the wider review of the tribunal system and enforcement practices, along with reference periods for zero contracts, changes to trade union recognition, and proposed reforms to collective consultation rules. These should all be part of proper consultation and we welcome the government’s statements in this regard.
“With so much change, it will be crucial for the government to provide clear advance communication, alongside practical guidance and support for employers. And to provide this in good time, particularly for smaller organisations that don’t have in-house HR support.
“As the professional body for HR and people development we will play our part not only in the further consultations to come, but also in developing guidance and training. For example, on working together with unions, and supporting our members and the wider profession to understand and manage the changes effectively. We all need to work together to ensure that the bill works in a positive way to help those in more insecure work or working environments, but that it does not become a brake on recruitment and growth.”
