Stephen Simpson, Content Manager - Employment Law and Compliance at Brightmine, comments:
“As the UK welcomes the new Employment Rights Bill, HR professionals are grappling with uncertainty over how to navigate its potential impact on both their employees and their organisation.
The removal two-year qualifying period for unfair dismissal claims is a key concern. Previously, this rule allowed employers more flexibility in managing underperforming staff with less than two years’ service.
However, under the new Bill, while companies can still use probation periods to evaluate new hires, they will need to demonstrate that a fair process has been followed from the outset.
This change may not seem drastic, but it increases pressure on HR teams to juggle multiple moving parts while dealing with the potential fallout of line managers not following the correct process.
If dismissals are not managed properly, businesses could face a rise in tribunal claims, further straining already overstretched HR teams.
The key is not to wait. Employers must act now before the legislation comes into force. Our advice is to conduct an audit of your current policies and processes and ensure that all managers are trained in how to effectively manage the performance of employees. This will ensure that when the law changes, the organisation is in the best place to avoid any possible challenges.“
Jasmin Dhillon, Employment Partner at Spencer West LLP comments:
“The new Employment Rights Bill marks a significant shift for everyday workers, tackling long-standing issues like maternity pay, zero-hours contracts, and sick pay.
For many expectant mothers, the Bill is a win. It proposes making maternity pay a ‘day one’ right, in contrast to the current requirement to have been employed for at least six months. This ensures financial stability for more expectant mothers during this critical period, particularly given the seemingly ever-increasing costs of living. Under the new proposals, more women will qualify for better-paid leave, giving families a better shot at balancing work and life.
Zero-hours contracts have long been a point of contention. The Bill takes aim at exploitative practices by providing workers on these contracts with more certainty over their hours and income. While flexible working can be beneficial for some, the lack of predictability leaves too many at the mercy of unstable schedules and income. The new rules should offer greater security, giving workers the ability to plan their lives without fear of last-minute shifts or cancelled hours.
Sick pay also gets an overhaul. Many workers, particularly those in insecure jobs, feel compelled to work through illness because they don’t meet the eligibility criteria for statutory sick pay. The Bill’s proposal to expand eligibility for sick pay (by making it payable on the first day of illness and scrapping the minimum earnings requirement) is a welcome development for workers, ensuring that being unwell doesn’t equate to financial disaster. It is however not yet clear as to whether the amount of statutory sick pay will be increased.
Overall, the Employment Rights Bill is a step towards changing the balance of power between organisations and their staff.”
Brigitte Weaver, Employment lawyer at Katten Muchin Rosenman LLP comments:
“The Labour Government is introducing its flagship “Plan to Make Work Pay” in the form of the new Employment Rights Bill into Parliament today. The government is proposing a raft of nearly 30 employment law changes including enhancing family leave protections and controversially, introducing unfair dismissal protection from day one of employment.
When and how many of these reforms will take effect and how they will actually work in practice is not clear. 2026 is currently being touted but it’s not been confirmed. In the meantime, here is a summary of some of the key proposals which are likely to affect professional services firms:
- Unfair dismissal - Removing the current two-year qualifying period for protection from unfair dismissal to make it a day one right. The government have said this will coincide with a statutory probation period of nine months for new hires but employees will still be able to claim for unfair dismissal. The government says there will be a “lighter touch” approach to letting an employee go during the probation period if the role is not working out but they have not clarified what that means.
- Family leave - Introducing enhanced family leave rights including rights to paternity, unpaid parental and bereavement leave from day one of employment (rather than the current 26 weeks qualifying period). The government has also promised a full review of all parental-leave rights promised alongside the bill.
- Enhanced rights for woman in work - Introducing new statutory protection from dismissal for women while pregnant, on maternity leave and within six months of returning to work. There is also going to be a requirement to draw up an action plan to address gender pay gaps and support female employees through menopause.
- Sick pay – Making statutory sick pay a day one right.
- Flexible working - Making flexible working the default where this is ‘practical’. What this means is still currently unclear. Interestingly, there will only be guidance (but not legislation!) on Labour big manifesto pledge of “the right to switch off” which prevents employees from being contacted out of hours (except in exceptional circumstances).
- Minimum wage – Introducing a requirement to account for the cost of living when setting minimum wage rates. This also includes removing the current age bands which sets lower pay for younger staff.
Other reforms include: a ban zero-hours contracts, a ban fire and rehire practices and the introduction of an enforcement body called the “Fair Work Agency” which will be tasked with enforcing employment rights such as holiday pay.
Bear in mind none of this has been enacted into law. If and when the bill does receive royal assent, the normal principles of employment law and common sense will continue to apply. Every employee and every situation is different and these new reforms will need to be considered in light of that.”
Simon Daly, Employee Experience Strategy Director, Qualtrics comments:
“This Bill and the broader Government-led initiatives and legislation we’re seeing around the employee experience reflects the growing importance of it for employees themselves but also as an accelerator for businesses. There is a real commercial benefit to investing in the employee experience, be it retention, productivity, the positive impact on customer experience, or simply the quality of work or product that can be delivered.
While this legislation has the potential to make a real difference, such as changes to entitlement to sick pay or stipulations on contracts to reflect regular working hours, employers should also use this moment to take stock of the culture within their businesses. For example, with the right to disconnect absent from this Bill in particular, businesses should still consider whether their teams could benefit from its principles.
For those looking to proactively optimise the employee experience, the annual survey is not enough. To drive real employee engagement you need to have a clear view of their experiences and feelings about work at every point in the employee lifecycle from interview to onboarding and onwards. The post-covid years have seen many changes with the employee experience and while every organisation will be different, culture is the centrepiece for all, and it starts with detailed experience insights”
Jo Mackie, Partner and leading employment lawyer at Burlingtons, comments:
"The bill does make provision to cancel the two year probationary period for dismissal; however the government has committed to a consultation period before implementation. That does not make it a ‘day one’ right as advertised. It looks like a fudge by Labour and unscrupulous employers will be lobbying hard to get ‘day one’ extended, perhaps to several months.
The Bill as proposed is good for business and, at best, so-so for workers. Bosses will be sighing with relief. The absence of a ‘right to disconnect’ tells its own story. Workers have been given the odd sweetener, such as the right to request flexible working. The only measure with teeth are the changes to zero hours contracts. The Bill does not make groundbreaking advances in workers rights as Labour had promised."
