Big changes are coming for UK employers. The Employment Rights Bill has finally passed after months of debate, bringing in around 30 major reforms that will affect nearly every business. If you want to stay ahead and ensure your business is compliant, now is the time to take a closer look.

Key Changes Employers Should Know

Here’s a breakdown of the most important updates:

1. Unfair Dismissal

Employees can now bring an unfair dismissal claim after six months, instead of the previous two-year wait. This means fair and documented processes are more important than ever from day one.

2. Paternity & Parental Leave

All eligible employees will have day one rights to paternity and parental leave – no waiting period.

3. Statutory Sick Pay (SSP)

SSP will now be payable from day one of absence, rather than day four. Clear sickness policies and effective absence management are essential.

4. Unfair Dismissal Compensation

The previous £118,000 cap is being removed, so the potential financial exposure for employers is higher.

What Employers Need to Do

With 173 pieces of legislation included in the bill, businesses will need to review and update many areas, including:

• Recruitment & Probation: Ensure processes are documented and probation periods align with the new unfair dismissal rules.

• Contracts & Policies: Refresh all HR documentation to comply with the new regulations and the Fair Work Agency (FWA) requirements, effective April 2026.

• Sickness Management: Implement clear processes for both short- and long-term absences.

Preparing for the Future

The key to staying ahead is planning now. Reviewing your processes and documentation early will help you avoid issues later and ensure your business remains compliant.

Need a hand? We can help review your contracts, policies, and HR processes to make sure you’re ready for the changes. Get in touch, and we’ll guide you through everything you need to do so you can focus on running your business with confidence.