On December 18th, 2025, Parliament completed its discussions regarding the Employment Rights Bill meaning it will become the Employment Rights Act 2025. This means important changes to employment law most of which will happen in 2026 and 2027.
We’ve summarised a timetable of changes below.
Our clients will be provided with updated policies where required (there are lots!) – please contact us if you would like to chat about what you need to do to remain compliant.
April 2026
Day One Statutory Sick Pay (SSP) & Eligibility
From April 2026, the three-day waiting period and lower earnings threshold for SSP will be abolished. Employees will qualify from day one, creating additional payroll commitment.
Day One Paternity & Parental Leave
The current qualifying periods for paternity leave (26 weeks) and unpaid parental leave (one year) will be removed, so that employees will be able to take leave from day one.
Enhanced Whistleblowing Protection
Sexual harassment will be explicitly included as a protected disclosure under whistleblowing legislation, offering greater protection for employees who report incidents.
July 2026
Unfair Dismissal Claims
The new 6 months’ qualifying period will apply to employees who have six months qualifying service on 1 January 2027 (i.e. those who commenced employment in July 2026), with regulations to be issued early 2026.
Employers will need to consider whether to shorten existing probationary periods or at least tighten up probation management, to be sure that final decisions are implemented before the six-month mark.
In addition, the Government has introduced amendments to abolish the current limits on compensation for financial loss in unfair dismissal claims submitted after 6 months employment.
Currently, former employees who successfully bring a claim are limited to either their annual salary or £118,223, whichever is lower.
October 2026
Fire and Rehire
The practice of fire and rehire/replace will be automatically unfair only for changes to certain core terms, including:
- pay
- required number of working hours
- pension
- shift times and length
- time off rights
Fire and Replace
A separate government amendment has extended the ban to cover “fire and replace”.
The replacement of employees with self-employed independent contractors, workers who are not employees, agency workers or any other individuals who are not employed by the employer will also be banned, if the replacement is going to do substantially the same work.
Changes to other terms and conditions, for example to alter an employee’s job title, will not be automatically unfair but will remain subject to the usual unfair dismissal tests.
Tribunals will need to take account of the reason for the variation, any individual or collective consultation and anything the employee was offered in return for the change.
Mandatory Harassment Prevention
A duty on employers to prevent harassment (of any protected characteristic, not just sexual harassment) of their employees by third parties (such as clients or customers) will be introduced.
Extended Tribunal Claim Time Limits
Employees will have up to six months to file most claims in Employment Tribunals, up from the current three months.
2027
Unfair Dismissal
From January 1, 2027, employees who have six months qualifying service will have the right to make an unfair dismissal claim.
After 6 months employment, employers will need to identify a ‘fair reason’ for dismissal – such as conduct or capability.
In addition, the Government is expected to abolish the current limits on compensation for financial loss in unfair dismissal claims submitted after 6 months employment.
Currently, former employees who successfully bring a claim are limited to either their annual salary or £118,223, whichever is lower.
Increased pregnancy and maternity rights
Current Status
Pregnant employees and those on, or returning from, extended family leave are already afforded additional protection in redundancy situations.
Since April 2024, pregnant employees have had the right to be offered suitable alternative employment (where available) from the point they inform their employer of their pregnancy.
This protection continues throughout pregnancy and for 18 months following the child’s birth.
Proposed Changes for 2027
The proposed changes will extend dismissal protections for pregnant women and new mothers, making it unlawful to dismiss them during pregnancy, maternity leave, and for at least six months after returning, except in specific circumstances such as:
- Gross misconduct
- Business or site closure
- Insolvency/bankruptcy
- Restructuring to avoid severe financial difficulty, if no alternative roles are available.
This enhanced dismissal protection will relate not solely to redundancy, but to any dismissal.
Bereavement Policy
Current Status
The statutory right to paid bereavement leave currently applies to employees who experience the loss of a child under the age of 18 or a pregnancy loss after 24 weeks.
Proposed Changes for 2027
Proposed changes aim to give all employees a day-one right to one week of unpaid leave for most family losses, including in-laws, cousins, and “chosen family”.
Also, employees experiencing miscarriage or pregnancy loss before 24 weeks (including IVF implantation failure) will get a week of unpaid leave, with partners also covered.
Flexible working
If an employer rejects a flexible working request because of a genuine business reason, they will have to:
- state the reasons
- explain why they believe their refusal is reasonable
Doing this is already good practice. But it’s expected to become a legal requirement.
