Major Employment Law Reform: What You Need to Know

Major Employment Law Reform: What You Need to Know

A major shake-up to UK employment law is underway with the introduction of the Employment Rights Bill, which the government claims is the “biggest upgrade to rights at work for a generation.”

However, some reforms are still being finalised, and there are uncertainties about how these new measures will work in practice. Let’s break down the key proposed changes and what they could mean for you.

Unfair Dismissal

The new bill allows workers to claim unfair dismissal from day one. This replaces the current two-year qualifying period. But employers will still have a nine-month probationary period, allowing for easier dismissals without the full process. This could change as consultations are ongoing. The new rights should take effect by autumn 2026.

Zero-Hours Contracts

Under the new law, employers must offer guaranteed hours to zero-hours workers based on their hours over a 12-week period. Workers will also get reasonable notice before changes to their shifts. They will receive compensation if a shift is cancelled.

Flexible Working

Flexible working becomes the default option. Employees can request it from day one. Employers must prove that a request is unreasonable to deny it. However, they can refuse for various reasons, including financial burdens or the impact on customer demand.

Sick Pay

Statutory Sick Pay (SSP) will change. Employees will qualify for SSP from the first day they are ill. The reforms remove the waiting period and lower earnings limit. Those earning under £123 a week will also qualify.

Parental and Bereavement Leave

The government will extend parental and bereavement leave to cover employees from day one. This change gives immediate rights for time off to new parents or those experiencing the death of a dependant.

Fire and Rehire Practices

The new law will curb the practice of “fire and rehire.” Companies cannot dismiss workers only to rehire them on worse terms, except if they risk insolvency.

What’s Next?

These Employment Law reforms promise to enhance workers’ rights. However, details may change before the bill’s implementation in 2026. Employers and employees should stay informed about these developing measures.

If you’re an employer or employee navigating the complexities of these new laws, contact Austen Jones Solicitors for expert guidance and a personal approach to your legal matters.