What's Happening?
The UK Parliament has passed the Employment Rights Bill, introducing significant changes to employment law. The new legislation shortens the qualifying period for unfair dismissal protection from two years
to six months, effective July 2026. It also extends day-one rights for workers, including statutory sick pay and paternity leave. The bill aims to balance worker protections with employer flexibility, though some business leaders express concerns about potential impacts on hiring and investment.
Why It's Important?
The Employment Rights Bill represents a major shift in UK employment law, with implications for both workers and employers. By reducing the qualifying period for unfair dismissal, the bill enhances job security for employees, potentially leading to a more stable workforce. However, the changes may also increase the administrative burden on employers, particularly small businesses, which could face financial risks from increased compensation claims. The bill's passage reflects ongoing debates about the balance between worker rights and business flexibility.
What's Next?
Employers will need to review and update their HR policies and practices to comply with the new legislation. This includes revising employment contracts, handbooks, and dismissal procedures. HR departments may also need to provide training to ensure compliance with the new rules. As the reforms are implemented, businesses will be closely monitoring their impact on hiring practices and workforce management.
