EMPLOYMENT RIGHTS BILL SUPPORT FOR EMPLOYERS

From 1 January 2027, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months. The cap on compensatory awards will also be removed.

If your dismissal or probation processes currently rely heavily on the two-year qualifying period, they should be reviewed before the change takes effect.

Changes to Statutory Sick Pay took effect on 6 April 2026. Eligible employees can now receive SSP from the first full day of sickness absence, while the previous Lower Earnings Limit has been removed.

Employers should already have reflected these changes in relevant sickness policies, payroll arrangements and manager guidance.

Paternity Leave and Unpaid Parental Leave became day-one rights on 6 April 2026, with Bereaved Partner’s Paternity Leave also introduced. Further bereavement and pregnancy-related protections are expected during 2027.

Family leave policies and internal processes should be checked as the remaining measures come into force.

Employees already have a day-one right to request flexible working. Further reforms expected in 2027 will affect how requests are considered and refused, including requirements relating to consultation and the reasonableness of an employer’s decision.

Final requirements should be checked before policies and manager guidance are updated.

Further rights are planned around guaranteed hours, reasonable notice of shifts and payments when shifts are cancelled or moved at short notice.

Detailed implementation is still being developed following consultation, making this an important area to monitor for employers that use zero-hours or similar working arrangements.

The maximum protective award for failures relating to collective redundancy consultation increased from 90 to 180 days’ pay in April 2026. Further changes to collective redundancy requirements are expected, alongside new protections concerning fire and rehire from January 2027.

If workforce changes are being considered, HR advice should be sought before decisions are made.

Further measures expected in 2027 include stronger dismissal protections for pregnant women and new mothers, as well as changes intended to restrict the misuse of NDAs in workplace harassment and discrimination cases.

Relevant policies and practices may need reviewing once the final requirements are confirmed.

Yes. The Employment Rights Bill received Royal Assent on 18th December 2025 and became the Employment Rights Act 2025. Its measures are being introduced in stages rather than taking effect on a single date

The Act introduces changes across areas including unfair dismissal, sick pay, family leave, flexible working, redundancy, fire and rehire, guaranteed hours and workplace protections. Some measures are already in force, with others due during 2026 and 2027.

There is no single implementation date. Measures are being phased in throughout 2026 and 2027, and dates for future provisions may still change.

Start with the parts of your HR setup most likely to be affected. Contracts, policies, sickness absence, family leave, flexible working, dismissal and redundancy processes may all need reviewing, depending on your organisation.

Not necessarily. It depends on your existing contracts and the reforms that affect your business. Clover HR can review your documentation and identify whether amendments are required.

Sickness absence, family leave, flexible working, disciplinary, dismissal and redundancy policies are among those that may be affected. The right starting point will depend on the policies and working arrangements you already have.

From 1 January 2027, the qualifying period for ordinary unfair dismissal protection will fall from two years to six months. The cap on compensatory awards will also be removed.

Small businesses still need to understand and apply the employment requirements relevant to them. The impact will vary depending on workforce size, contracts, working patterns and how employee issues are currently managed.

Yes. We can review relevant policies, contracts, procedures and working practices, identify the areas requiring attention and help put the necessary changes in place.

Yes. Our retained HR service gives you ongoing access to experienced HR professionals as further regulations, guidance and Employment Rights Act measures are introduced.