Employment Rights Bill confirmed: Key implications for employers
At the end of 2025, the House of Lords conceded and agreed to the government’s proposals under the Employment Rights Bill. Having now complete its passage through Parliament, the Bill will shortly become the Employment Rights Act, and attention is turning to where the key provisions have landed and what this means in practise for employers.
This update from our Employment Law team summarises the confirmed changes and highlights the steps employers should be taking now.
Unfair dismissal: reduced qualifying period
The government has confirmed its intention to introduce secondary legislation in 2026 to reduce the qualifying period for ordinary unfair dismissal claims. The change is expected to take effect from 1st January 2027.
From that date, any employee whose dismissal takes effect on or after 1st January 2027, and who has at least six months’ continuous service at the point of dismissal, will be entitled to bring a claim for unfair dismissal.
Practical impact for employers
This is a significant shift from the current two-year qualifying period and will require employers to reassess several aspects of their people management processes:
- Recruitment and selection – Employers should review recruitment processes during the early months of 2026 to ensure they are sufficiently robust to identify candidates with the right skills and cultural fit. This may involve more structured interviews, additional assessment stages or enhanced pre-employment screening.
- Probation periods – Contractual probation periods will need to be reconsidered to ensure they remain appropriate in light of a six-month qualifying period. Employers may also wish to review how probation reviews are conducted and documented.
- Dismissal processes – The anticipated increase in exposure to unfair dismissal claims reinforces the importance of having clear disciplinary and capability procedures which are consistently applied and ensuring that managers are properly trained in their use.
April 2026 reforms
The government appears on track to implement a number of additional reforms in April 2026, including:
- Collective redundancy consultation – The maximum protective award for failure to comply with statutory collective redundancy consultation obligations will double from 90 to 180 days’ pay per affected employee.
- Paternity and parental leave – Statutory paternity leave and unpaid parental leave will become “day one” rights. Employees will also be able to take paternity leave either before or after a period of shared parental leave.
- Sexual harassment and whistleblowing – A disclosure raising concerns about sexual harassment will qualify as a protected disclosure for whistleblowing purposes, provided the usual criteria (including a reasonable belief that the disclosure is in the public interest) are met.
- Statutory Sick Pay – Statutory Sick Pay (SSP) will become payable from the first day of sickness absence and the lower earnings limit for SSP eligibility will be removed.
Employer action points
In advance of April 2026, employers should:
- Review and update relevant HR policies and contractual documentation.
- Ensure payroll systems are prepared for changes to SSP entitlement.
- Provide targeted training to HR teams and line managers so they understand the new rights and how to apply them in practice.
Next steps
The Employment Rights Bill represents one of the most wide‑ranging sets of employment law reforms in recent years. Employers should use 2026 to prepare for the reduced unfair dismissal qualifying period and the April 2026 changes and to audit existing policies, contracts and management practices.
If you would like advice on how these changes may affect your organisation, please contact Natalie Peacock at Natalie.peacock@rogers-norton.co.uk