Last October, the new UK government unveiled what it described as the ‘biggest upgrade to rights at work for a generation’.
The legislation, now going through Parliament, covers a lot of ground – the Bill started out with 119 clauses and over 158 pages and will significantly impact the way people issues are dealt with.
So, what can your business do to prepare for these major changes? The good news is that you have time – most of the changes are not expected before Autumn 2026. But there is lots to think about – and the earlier you can start planning and training for this, the better.
Nick Pritchett, our brilliant employment lawyer, shares a checklist that highlights the main changes expected and what you need to do to get ready for them.
Unfair dismissal: The current two-year qualifying period will be removed so that employees will be able to bring a claim of unfair dismissal from day 1. It is proposed that employers will have a 9-month probationary period to lawfully dismiss by following only a very basic procedure. However, the devil will be in the detail and the government has said it will consult further on how this will work in practise.
ACTION:
Keep a watching brief on developments – changes to unfair dismissal are not expected to be in force before Autumn 2026. Review your recruitment procedures to ensure these are robust enough and consider staff employment status e.g. is there an alternative to direct employee hires? Check your employment contracts to ensure you have clear probationary periods which comply with the new requirements and amend if necessary.
Flexible working: Employers will only be able to refuse requests on one of the existing legal grounds if it is reasonable to do so (currently an employer’s obligation is only to consider an application “in a reasonable manner”, they don’t have to justify their decision). In future, an employer will have to explain why they consider that their decision is reasonable. This should not be too onerous to do, but it will be important to ensure the reasoning is clearly understood and communicated.
ACTION:
Review and amend your existing flexible working policy and any standard letters so they reflect the legal changes. Train relevant staff on new requirements.
Redundancy: More businesses will be caught by the requirement to consult collectively (ie with employee or trade union representatives) and to notify the government when making redundancies. Currently, this only applies where an employer is proposing to dismiss as redundant 20 or more employees at one establishment within 90 days or less. The reference to ‘one establishment’ is being removed so that the thresholds will apply in respect of the whole of the business.
ACTION:
In the event of redundancy proposals, proceed with caution and take advice early to understand your legal obligations. Build in enough time in your timetable to ensure compliance.
Fire and rehire: When employees refuse to accept changes to their terms and conditions, the last resort for some employers can be to dismiss them and offer them re-employment on the new terms. This practice will be unlawful – with a narrow exception for when a business can show contractual changes were necessary to ensure its financial survival.
ACTION:
In the event of needing to make changes to employees’ terms and conditions, take legal advice as soon as possible and draft employee communications carefully to ensure a compliant consultation process.
Sick pay: Statutory sick pay (SSP) is currently not payable for the first three days of illness. This waiting period will be abolished and employees will be entitled to SSP from day one. The lower earnings limit will also be removed, making all employees eligible for some SSP regardless of what they earn.
ACTION:
Review and amend any sick pay policies to reflect the new rules. Ensure relevant staff are aware of the new requirements and payroll procedures are updated accordingly.
Parental rights: Paternity leave and unpaid parental leave will become available from day 1 of employment – the current qualifying period of 26 weeks will be abolished. Paternity leave will become available after a period of shared parental leave (currently not allowed). The right to parental bereavement leave will also be extended. It is expected that the government will review parental leave (which it believes does not support working parents) and implement carer’s leave at a later date.
ACTION:
Review and amend relevant parental leave/pay policies to reflect the new rules. Ensure relevant staff are aware of the new requirements and payroll procedures are updated accordingly.
Zero hours contracts: Workers on zero hours contracts who are not given reasonable notice of shift cancellations or changes by their employers will be entitled to compensation. Zero hours workers (who meet qualifying conditions) will be given the right to guaranteed hours. The mechanism for this is likely to be complex and the details will be set out in further legislation. Note, guaranteed hours will not be compulsory; workers who are happy to continue on zero hours contracts will be allowed to do so.
ACTION:
If your business uses zero hours contracts keep a watching brief on developments to understand if/how you will be affected. Consider if changes to relevant contracts and policies will be necessary.
Sexual harassment: A new duty on employers to take “reasonable steps” to prevent sexual harassment in the workplace was only introduced on 26 October 2024 (see our recent blog) but this will now be widened so that employers must take “all reasonable steps”. Legislation will specify steps that are ‘reasonable’ for an employer to take.
Employers will also become liable for third party harassment of their staff (such as by customers) if they have not taken all reasonable steps to prevent the harassment.
ACTION:
Keep a watching brief on the legally required reasonable steps and consider how you can implement these in your organisation.
Employment particulars: A new requirement that an employer provide a worker with a written statement of his or her right to join a trade union will be introduced.
ACTION:
Keep a watching brief on the exact information that will be required. Review and amend your employment particulars to cover this.
Update on the right to switch off
There was speculation that a “right to switch off”, preventing employers from contacting individuals out of office hours, would also be introduced. However, the government appears to have backed away from making this a stand-alone legal right and has now said it will look to implement this through a code of practice. No date has been set for this yet.
Can we help?
We can help you review and amend your people policies and procedures and advise on implementing practical changes to ensure you remain compliant and mitigate legal risk. We also offer extensive training options to help your workforce get to grips with new legal requirements.
