UK employment law is on the cusp of major reform – some of the biggest shifts in workplace legislation for over a decade will need to be navigated by employers.
Here are the five headline changes, their expected ‘go live’ dates and the key facts for each.
1. Day-one right to unfair dismissal claims
When: expected in 2027.
What: employees will gain the right to claim unfair dismissal from day one of employment rather than after two years’ continuous service which is currently the case.
Why it matters: this closes the “two-year window” many employers have relied on, putting far greater weight on probation reviews, onboarding, and dismissal processes.
Action points for employers:
• set clear expectations with new hires from day one.
• hold regular check-ins throughout the probationary period (expected to be nine months).
• ensure all performance conversations are documented and shared with the employee.
Action points for HR:
• update contracts and probation policies.
• review onboarding.
• train managers and provide templates for probation reviews.
Some more detail on what we know so far:
Initial period of employment (known as the IPE). The IPE will begin on the first day of employment and will last for six or nine months (it has not yet been decided). The IPE will act as a statutory probation period, meaning it should be more straightforward to terminate employees’ employment during their first few months. During the IPE, the standard of reasonableness for dismissals will be less stringent, allowing employers to carry out a “light touch” dismissal procedure.
“Light touch” procedure. During the initial period of employment, a ‘lighter touch’ dismissal process will be allowed so assessing and dismissing new recruits who are underperforming or unsuitable without going through the full disciplinary or capability procedure will still be allowed.
Employers will need to be diligent during the hiring process and manage wellbeing, performance and conduct issues from the outset.
2. Zero-hours contracts and guaranteed hours
When: planned for 2027.
What:
• after 12 weeks’ continuous work, employers must offer a guaranteed hours contract.
• zero-hours contracts can still exist, but one-sided flexibility will be curbed.
• workers will also gain rights to reasonable notice of shifts and payments for late cancellations.
Why it matters: this limits employers’ ability to rely indefinitely on casual labour and demands better planning.
Action points for employers:
• give team members as much notice of shifts as possible.
• keep communication consistent and fair when allocating hours.
• flag workload patterns early to HR for contract adjustments.
Action points for HR:
• track hours worked to identify when guaranteed hours apply.
• run scenario planning to assess the business impact of contract changes.
• explore time tracking software to stay compliant.
The government isn’t abolishing zero-hours contracts — just the abuse of them. So for businesses that rely heavily on casual staff, the admin burden is huge. Tracking hours and allocating shifts fairly may require new systems or software.
3. Statutory sick pay (SSP) from day one
When: from April 2026.
What:
• SSP will be payable from day one of absence (currently day four).
• the lower earnings threshold is being removed.
Why it matters:
• this widens access and protects vulnerable workers, but costs and absence rates are likely to rise.
Action for employers:
• hold open, supportive sickness conversations.
• conduct return-to-work interviews consistently.
• monitor absence patterns in your team and escalate concerns.
Action for HR:
• update absence management policies and contracts.
• ensure sickness is logged and tracked in a central system.
• train managers on how to handle sickness calls fairly and confidently.
Without the three-day waiting period, short-term absences are likely to increase. Employers should budget for increased SSP costs from April 2026, review sickness absence procedures and ensure managers are adequately trained on managing short-term absence.
4. Stronger protections against harassment and discrimination
When: most provisions expected by October 2026.
What:
• employers must take all reasonable steps (not just “reasonable steps”) to prevent harassment.
• liability will extend to harassment by third parties (clients, customers, contractors).
• restrictions will be placed on using NDAs in harassment or discrimination cases.
Why it matters:
• the bar for compliance has been raised – evidence of proactive prevention is now essential.
Action points for employers:
• model zero tolerance for inappropriate behaviour.
• intervene promptly if issues arise.
• encourage team members to use reporting channels if they feel unsafe.
Action points for HR:
• deliver regular harassment awareness training (not one-offs).
• conduct risk assessments for events, travel, and client sites.
• establish and monitor clear reporting processes.
• keep detailed records of training, reports and actions taken.
Employers must show they took all reasonable steps to prevent harassment – not just some – that is a very high bar. If a complaint is made, what could an employer prove? Training two years ago isn’t enough – it has to be continual and the audit trail is everything.
5. Flexible and hybrid working rights
When: expected in 2027.
What:
• employees already have the right to request flexible working from day one.
• the new law introduces a reasonableness test: not only must the process be fair, but the decision itself must also be reasonable.
Why it matters:
• expect more requests – and more scrutiny if refusals aren’t backed by solid evidence.
Action points for employers:
• consider each request on its merits and avoid blanket refusals.
• document decisions and discussions with employees.
• be open to exploring alternatives (e.g. partial flexibility).
Action points for HR:
• update policies and request forms.
• train managers on what constitutes a reasonable refusal.
• align leadership on the business rationale for core office hours or hybrid models.
The onus is on the employer to demonstrate that they have considered the request properly, explored alternatives and documented their decision making.
Summary of steps for the employer:
• set clear expectations during onboarding and probation.
• hold regular check-ins and document performance from day one.
• manage sickness conversations sensitively but consistently.
• respond promptly to flexible working requests and explore alternatives.
• lead by example: model zero tolerance for harassment and create a safe space for employees to speak up.
Summary of steps for HR:
• audit and update contracts, handbooks, and policies.
• refresh absence management and harassment prevention frameworks.
• track hours and absence with robust systems to stay compliant.
• deliver ongoing training for managers on probation reviews, absence handling, flexible working and harassment.
• strengthen reporting channels and keep meticulous audit trails.
For assistance email nicola.goodridge@goodhr.co.uk or call +44 7917878384