With the Employment Law Bill shaping up to be one of the biggest overhauls in years, there’s a lot for employers to get their heads around.
Some parts are still being defined, but one thing’s already clear: businesses that don’t take hiring, onboarding and employment processes seriously are opening themselves up to serious risk. Tribunal payouts are rising, day one rights are expanding, and a new enforcement body could soon be holding businesses publicly accountable.
Here’s what hiring managers and business leaders need to know right now—and what you can do to stay ahead.
What’s changing
1. Day one rights are expanding
From flexible working to sick pay to parental leave—more rights are becoming guaranteed from the very first day of employment. That means your recruitment process and onboarding need to be watertight, fair and clearly documented.
2. Unfair dismissal changes
A new statutory probation period is being introduced. If it’s not followed correctly, employees could bring an unfair dismissal claim—from the first day of employment, similar to the current day one rights for discrimination claims. Compensatory awards now go up to £118,223, so this is one to take seriously.
3. Redundancy, fire and rehire
The days of dismissing someone and re-engaging them on new terms are numbered. There is only one very specific circumstance where this is permitted. If the process isn’t handled carefully, it could automatically count as unfair dismissal. Collective redundancy done badly could cost you up to six months’ pay per employee.
4. Zero-hour contracts
Not banned but if you’re using them in an exploitative way, you’ll need to change. Anyone working for you for 12+ weeks will have the right to request guaranteed hours.
5. Family-friendly leave
Neonatal leave has already started and is a day one right. Employees can take up to 12 weeks’ leave (and pay), to spend with their child that has received neonatal care. This right extends to the birth parent, father or partner, spouse, civil partner or adoptive parent.
6. Sexual harassment protections
Your responsibilities are increasing following October’s changes, especially around third-party harassment. Employers will need to take all reasonable steps to avoid harassment. Risk assessments and training are key to meeting your obligations.
7. Trade unions and collective rights
Unions are being strengthened with lower thresholds for recognition, more access to facilities and more power to challenge decisions.
8. A new enforcement body is coming
The Fair Work Agency (similar to HSE or HMRC) is set to enforce day one rights and may even publicly name and shame businesses that fall short. Details are still emerging, but it’s a clear sign that non-compliance won’t fly.
What’s already changed
Minimum Wage
Review your salaries now to make sure no one falls below the new rates.
Sick Pay
Now £118.75 per week,and no more three-day wait meaning colleagues get sick pay from the first day of absence. Neonatal Leave Now a day one right—up to 12 weeks of paid leave for parents, adoptive parents, spouses and partners. This can be added onto other family leave.
What to do next
- Review your hiring and recruitment processes
- Make sure your compensation packages meet the new minimums
- Revisit your probation policies
- Check your harassment, bullying and equal opportunity policies
- Make sure managers are trained and up to date
- Understand your responsibilities under the Worker Protection Act
- Evaluate your union and worker representative relationships
- Stay alert—especially when it comes to employee concerns or complaints
In short?
Get your house in order now. The changes are coming in fast, and the risks of getting it wrong are only going up.
Need help reviewing your processes or policies? We’re happy to connect you with the right people.