We get it. The words “new employment legislation” aren’t the most exciting thing to be reading and probably enough to make you want to go and do literally anything else. But there are some big changes to the Employment Rights Bill that will have a big impact on how you run your team.
Don’t worry, we’re not here to send you to sleep with legal jargon. We’re here to give you the ‘need-to-know’ bits, no fluff included.
Some of these changes are a way off (think 2026 and 2027) , but others are still being ironed out. We’ve dug into the essentials guide from the HR experts at SafeHR to pull out the key bits you need to have on your radar.
1.The Big One: Unfair Dismissal Rights from Day One
This is the change that’s caught most of the headlines. The government is expected to scrap the two-year minimum service requirement for most unfair dismissal claims.
- What it means: An employee could technically bring a claim from their very first day.
- The “buffer”: The good news is that the bill proposes a nine-month ‘Initial Period of Employment’. During this time, you’d be able to use a “lighter touch” dismissal process if things aren’t working out.
- What to do: Your hiring, onboarding, and performance management processes need to be rock-solid. You’ll need to monitor performance closely, keep excellent records, and follow dismissal procedures to the letter, even for new hires.
Oh, and the time limit for an employee to bring any employment claim is also set to double, from three months to six.
2. Rethinking Your Contracts: Zero-Hours & “Fire and Rehire”
This bill takes aim at insecure contracts.
- Zero-Hours Contracts: If you use casual or zero-hours staff, in 2027 you will be required to offer them a permanent contract with guaranteed hours. This will be based on the hours they’ve actually worked over a “reference period” (expected to be 12 weeks). This also applies to “low hours” workers, not just zero-hours.
- Cancelled Shifts: You’ll also need to compensate casual workers if you cancel or change their shifts without giving them adequate notice.
- “Fire & Rehire”: This controversial practice (dismissing someone and then rehiring them on worse terms ) will be banned from 1st October 2026. The only exception will be in cases of “extreme financial distress,” and even then, you’ll have to follow a very strict new code of practice.
3. Big Updates on Pay, Leave, and Workplace Safety
A whole host of other rights are getting a shake-up.
- Statutory Sick Pay (SSP): From 6th April 2026, the three-day waiting period for SSP is gone. Employees will be entitled to it from the first day they are sick. The lower earnings limit is also being removed, bringing more low-earning workers into the net.
- Family Leave: From 6th April 2026, the service requirements for paternity leave and unpaid parental leave will be removed. They will become Day 1 rights.
- Bereavement Leave: A new right to two weeks of leave for employees who experience a pregnancy loss before 24 weeks will be introduced in 2027. (It’s not yet confirmed if this will be paid or unpaid ).
- Harassment: This is a major change. From 1st October 2026, employers will be legally required to take all reasonable steps to prevent sexual harassment —a higher bar than the current rules.
- This also makes you accountable for harassment of your staff by third parties (like customers or clients).
- Your liability will apply from the first incident. You must review your harassment policy and consider training for your whole team.
4. Meet the New Sheriff: The Fair Work Agency
Starting from 6th April 2026, a new public body called the Fair Work Agency will be created.
Think of it as an enforcer for key employment rights, like minimum wage , holiday pay , and SSP.
This agency will have real power. It can issue fines (which must be paid in 28 days ) and even start employment tribunal claims on behalf of workers. One of their new rules will require you to keep holiday entitlement records for six years. Failure to comply could lead to serious penalties, including potentially unlimited fines.
So, what’s the “PPF” Takeaway?
That is a lot to take in, we know.
The key theme is simple: more protection for employees, which means more processes and responsibilities for you as an employer.
Don’t wait until these dates are looming. The single best thing you can do now is start reviewing your key documents.
- Does your employee handbook reflect these new rights?
- Are your employment contracts clear, especially around casual work?
- Are your policies (especially for harassment and family leave) up to scratch?
This is all about getting your house in order before the changes bite.
If you’re worried about what these changes mean for your business, we’re here to help.
Our ‘People and Culture‘ service is designed to handle exactly this. We provide full HR support, from access to HR lawyers and time-saving software to help with team development and culture.
You don’t need to be a PPF accounting client to use this service (although, we’d love to help with your accounts too!)
Let’s get your business ready. Book a free, 30-minute, no-obligation chat to see how we can help. Let’s Chat
