Unfair dismissals and firing
Employees will have the right not to be unfairly dismissed from day one of their employment, subject to a statutory probation period. The perimeters for the proposed statutory probation period are not clear yet, but the changes are due to take effect in 2027.
Parental job protections
It will be unlawful to dismiss employees throughout pregnancy, maternity, adoption, or shared parental leave and within six months of their return to work unless there are exceptional circumstances. This is an extension of the current maternity leave job protections. More details are to follow in future regulations prior to the expected implementation of the law in 2027.
Fire and rehire
The new Bill aims to restrict fire and rehire practices further than the Code of Dismissal and Re-Engagement published in July 2025. From October 2026, it will be automatically unfair to dismiss an employee for refusing to agree to key employment contract changes that affect their:
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pay
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work hour requirements
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pension
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holiday entitlement, or
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anything else defined within future regulations
It will also be automatically unfair if an employee is dismissed because the employer wants to hire someone else on these varied terms or to replace the employee with another person who is not an employee (ie a consultant or agency worker). However, this will likely not be applicable where an employer is responding to financial difficulties.
Collective redundancy consultations
A new threshold test is being established to trigger collective redundancy consultations, in addition to the current threshold. From 2027, a collective redundancy consultation will be triggered if 20 or more employees are being made redundant in a single site or workplace, or where the new threshold of employees being made redundant is met across multiple sites or workplaces.
The penalties for not complying with the collective redundancy requirements will also be doubled as of April 2026, making the maximum protective award 180 days of pay for each employee affected.
Harassment
The Bill will bring in an update to the recent sexual harassment legislation from October 2024. Employers will need to take ‘all’ reasonable steps to prevent sexual harassment in the workplace, including third-party harassment. This should come into effect in October 2026.
From April 2026, sexual harassment will be treated as ‘qualifying disclosure’ for whistleblowing purposes, meaning that when disclosed correctly, the whistleblower will be protected.
Non-disclosure agreements (NDAs) or any confidentiality provisions will be void (ie invalid) if they prevent any employees or workers from disclosing any harassment or discrimination, and any response the employer provides in relation to that harassment or discrimination. It is unclear when this will be enforced, but future regulations are expected to provide a clearer date.
Flexible working
From day one of employment, employers will only be able to refuse a Flexible working request so long as their refusal falls within one of the eight business grounds and their refusal must now be reasonable. Employers must also state their reasons and why they believe their refusal is reasonable to the employee. This is expected to come into effect in 2027.
Zero-hour contract workers
It was expected that the Bill would ban zero-hour contracts. However, this is not the case. Instead, where a worker with a Zero-hour contract or contract with minimum guaranteed hours regularly exceeds their minimum contractual hours over a set reference period (expected to be 12 weeks), the worker will be entitled to an offer of a new contract with guaranteed hours which reflect the hours worked in the reference period. This is unlikely to apply to temporary workers or workers hired for a specific task only.
Employers will also need to provide any workers (including workers with zero-hour contracts or irregular hours) with reasonable notice where the employee is required to work or where their shift has been cancelled or changed. If a worker’s shift has been cancelled or changed at short notice, where it was reasonably believed the worker was needed, then the worker will be entitled to a set payment.
The changes to zero-hour contracts, minimum-hour contracts, and irregular-hour workers are expected to be implemented in 2027.
Family rights
The changes to family rights are designed to make it easier for working parents and prioritise families in the modern working world.
Paternity leave and unpaid parental leave rights
Service length requirements are being removed for unpaid parental leave and paternity leave, making it a day-one right from April 2026. As such, employees no longer need to wait the qualifying 26 weeks of employment before being able to take paternity leave or one year for unpaid parental leave.
Paternity leave entitlement
From April 2026, employees will be able to take paternity leave and shared paternity leave, plus pay. Currently, employees lose any remaining entitlement to paternity leave and pay if they have already taken shared parental leave and pay. The new Bill removes this restriction.
Bereavement leave
A new entitlement to one week of bereavement leave from the first day of employment will be introduced. This intends to widen the scope of bereavement leave past the current parental bereavement rights, which will still be available. Further regulations will determine which personal relationships will qualify for this new bereavement leave. It isn’t clear whether this leave will be paid or not. This is expected to be introduced in 2027.
Statutory entitlements
The Bill will change statutory sick pay (SSP) entitlements, so SSP is paid from day one of an eligible employee’s illness rather than day four. The minimum earnings threshold will also be removed, meaning employees will no longer need to earn a minimum amount per week to be eligible for SSP. These changes are due to be implemented in April 2026.
Holiday pay records
Employers will also be subject to a new obligation requiring them to keep records to demonstrate their compliance with statutory holiday entitlements. Records must be kept for six years and non-compliance will be considered a criminal offence. It’s not yet clear when this new duty will come into force.
Equality reporting
Employers with more than 250 employees will be required to produce:
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a gender pay gap report and action plan
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a menopause support action plan, to help employees going through menopause
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(possibly) an ethnicity and disability pay gap report
Employers can voluntarily produce these plans from April 2026, but it will become mandatory by 2027.
Enforcement
Time limits for bringing claims to the Employment Tribunal are due to be extended by the Bill. From October 2026, all types of claims may be brought within a six-month period - double the current limit.
Fair Work Agency
The government is expected to build the new ‘Fair Work Agency’ with the aim of bringing together existing enforcement agencies and enforcing a collection of employment rights, such as those in relation to:
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national minimum wage
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SSP
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holiday pay and compliance
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labour exploitation and modern slavery
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tribunal awards and penalties
This new combined enforcement agency is expected to be established by April 2026 and will be granted a range of enforcement powers, including the ability to enter premises for inspection purposes.
Strike and trade unions
Once the new Bill is enacted, the Strikes (Minimum Service Levels) Act 2023 will be repealed. This means that requirements for minimum service levels that limit the number of workers striking within key sectors will be removed, allowing for more strike action.
Industrial action will be simplified for trade unions by repealing several sections of the Trade Union Act 2016 and implementing easier methods, including:
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reducing the amount of information trade unions need to provide employers about industrial action and ballot (ie a vote for industrial action) notices
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providing trade union members with digital access to ballots by April 2026
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only requiring a simple majority (50%) to vote for industrial action
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increasing industrial action mandates (ie the trade union’s authorisation for industrial action after a successful ballot) from six to 12 months
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reducing the notice period for industrial action from 14 days to 10 days
There will be a simplification of the trade union recognition process in a workplace by April 2026. From October 2026, it is likely that employers will have a duty to explicitly inform employees and workers of their right to join a trade union. Additionally, trade unions will be allowed to access employers’ workplaces (physically and digitally) for recruitment, organising, and collective bargaining purposes. Employers will need to reasonably accommodate trade union representatives so they can carry out their duties, including providing time off for ‘union equality representatives’.
New laws will be in place from 2027 onwards to protect trade union members from workplace discrimination, and plans to modernise the legal framework supporting trade unions by this time are in place.
Employment reforms timetable
Staying on top of these changes is crucial for employers. It's a good idea to review your current policies and contracts to make sure they're ready for when the new laws take effect. If you're unsure whether your existing documents are compliant, you can use our Document review service to have a lawyer check them for you. Should you need to make updates, you can easily make an Employee handbook and new Employment contracts to stay compliant. If you have any questions or concerns about how these changes affect your business, don't hesitate to Ask a lawyer.
