From today, 1 October 2026, the Right to Work Scheme has been extended to cover certain freelancers, contractors and subcontractors.

For employers who regularly engage freelancers or contractors, this is an important change to your onboarding and compliance processes.

What has changed?

The expanded rules bring certain individuals who are engaged as freelancers within the scope of Right to Work checks.

However, this does not mean that every freelancer or self-employed person now requires a Right to Work check.

The key issue is the nature of the relationship and how it operates in practice, rather than simply how the individual is described in the contract.

Sole trader or limited company – does it make a difference?

Not necessarily. A genuinely independent business can remain outside the Right to Work Scheme where you are engaging that business to provide a service, rather than engaging an individual to provide their labour.

This could include a genuine independent business operating as either:

• a sole trader; or
• a limited company.

Therefore, simply being a sole trader does not automatically mean that a Right to Work check is required.

What about a freelancer who is effectively working as part of your workforce?

This is where employers need to take care.

Someone may be described as a freelancer or self-employed contractor, but the reality of the arrangement may bring them within the expanded Right to Work requirements.

For example, if an individual is personally engaged to provide their labour as a worker or individual subcontractor, a Right to Work check may be required.

The contractual label — such as “freelancer”, “self-employed” or “contractor” — is not, by itself, determinative.

What should employers do now?

If your organisation engages freelancers, contractors or subcontractors, we recommend reviewing your current arrangements and considering:

1. Who are we actually engaging?
Is the contract with an independent business, or are we effectively engaging an individual to provide their labour?

2. How does the arrangement operate in practice?
Look beyond the wording of the contract and consider what the individual actually does and how the relationship works day to day.

3. Is the individual personally providing the work?
Personal service can be an important factor when determining whether the new requirements apply.

4. Are our onboarding processes up to date?
Where a Right to Work check is required, make sure it is completed correctly and at the appropriate stage before the individual starts work.

5. Do our existing contractors need to be reviewed?
Don’t assume that arrangements already in place are unaffected. The changes are a good opportunity to review your contractor population and identify any arrangements that may now fall within the scheme.

Summary

Being self-employed, submitting invoices or operating as a sole trader does not, on its own, determine whether the Right to Work rules apply.

The focus is on the substance of the engagement and whether the individual falls within the categories covered by the expanded scheme.

If you use freelancers or contractors, we recommend carrying out a contractor audit as part of your HR compliance review.

Identify:
• who you engage;
• the basis on which they are engaged;
• whether they operate as an independent business;
• whether they personally provide the work; and
• whether the new Right to Work requirements apply.

This is particularly important where an individual has historically been treated as a freelancer or self-employed contractor without a Right to Work check.

If you are unsure whether a particular contractor falls within the new rules, the arrangement should be reviewed on its individual facts rather than relying solely on the person’s employment status or the wording of their contract.

For advice email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

A well-written probation clause will not manage performance for you. With ordinary unfair dismissal rights scheduled to arise after six months’ service from 1 January 2027, employers need a process that:

• identifies concerns early,
• gives employees a fair opportunity to improve and
• records the decisions made.

Probationary periods are common in employment contracts, typically lasting between three and nine months. They are intended to give employers time to assess whether a new employee has the capability, conduct and overall suitability needed for the role. Too often, however, the review date goes into the diary and little else happens until the deadline is almost upon the manager.

That approach already creates avoidable risk. It can leave the employee unaware that there is a problem, give them too little time or support to improve, and leave the employer trying to justify a decision without a useful paper trail. The forthcoming reduction in the qualifying period for ordinary unfair dismissal makes early intervention even more important.

What is changing for unfair dismissal in January 2027?

From 1 January 2027, the qualifying period for an ordinary unfair dismissal claim is scheduled to reduce from two years to six months. The statutory cap on the compensatory award for unfair dismissal is also due to be removed. In practical terms, employers will have a much shorter window in which to assess a new employee, address concerns and decide whether employment should continue.

A probationary period is a contractual tool; it is not a separate legal status. Extending probation beyond six months will not delay the point at which the employee obtains the relevant statutory service. Nor does the end of probation create an automatic right to dismiss. The contract, the reason for dismissal and the process followed still matter.

Why early performance management matters

The strongest probation processes are not built around a single pass-or-fail meeting. They create a short, structured period in which expectations are clear, feedback is regular and concerns are addressed while there is still time to do something useful about them.

For employers, this means:

• setting clear and realistic standards from the outset;
• checking progress at planned intervals rather than waiting for the end date;
• raising concerns promptly and giving specific examples;
• providing appropriate support, training and a reasonable opportunity to improve; and
• keeping a clear written record of expectations, feedback, support and decisions.

This does not mean importing an unnecessarily elaborate capability procedure into every probation review. It means using a process that is proportionate, consistent and capable of showing how the employer reached its decision.

Confirming probation in writing

A formal written letter stating that probation has been successfully passed is good practice in any event, but with the advent of the new laws coming into effect in January 2027 it is really important that employers do not let silence imply a pass.

If you miss the review deadline or forget to issue a written confirmation, an employee who crosses the six-month mark gains full ordinary unfair dismissal rights regardless of whether the intention was to pass probation or not.

Contractual clarity: the original contract must state that successful completion of probation will be explicitly confirmed in writing.

Paper trail: maintain documented monthly reviews and clear, written performance objectives from day one.

Explicit completion letter: issue a formal, written letter stating that the probationary period has been successfully passed immediately upon completion.

Review your probation process now

The key point is simple: a probation clause is only as effective as the management behind it. Employers that set expectations early, deal with concerns promptly and keep useful records will be better placed to support employees to succeed and to make defensible decisions where performance does not improve.

For assistance email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

From October 2026, trade unions will have a statutory right to access workplaces to engage with workers – in person or digitally – for the purposes of representation, support, recruitment, organisation, and collective bargaining.

The reforms will apply to all but the smallest employers and some FAQs follow below.

Do trade unions need to request access?

Yes, the regulations will set a clear and consistent process for submitting, responding to, and negotiating access requests, ensuring transparency and efficiency for both unions and employers. Requests should be in writing and the union’s request should identify whether it is seeking physical or digital access (or both), the nature of the access and the reasons for this.

How long do employers have to respond to an access request?

Employers will have 15 working days to respond in writing. The employer’s response must cover the following specific elements:

• accept or decline: state clearly which parts of the physical or digital access are granted or refused.
• provide details: detail the categories and numbers of workers in the proposed bargaining unit, shift patterns, and any available facilities.
• justify refusals: if rejecting the request entirely or partially, provide clear, objective reasoning (e.g. severe operational disruption, insufficient notice, or overlapping access agreements with another recognised union).
• disclose other requests: confirm if they have received other union access requests or are in negotiations with other trade unions at the time.

What if the employer denies access to the trade union?

If the employer does not accept the request in full, it has an additional 25 working days to negotiate the terms of access with the trade union. If the employer and the union cannot agree terms, the union will have 15 working days to apply to the Central Arbitration Committee (‘CAC’) to assess if the access should be ordered.

What if the union and employer still cannot agree?

If agreement cannot be reached, then the CAC will decide if the union should be granted access to the workplace and, if so, on what terms. In making this decision, the CAC uses “access principles” as follows:

• union officials should be able to physically enter a workplace or communicate with workers in any manner that does not unreasonably interfere with the employer’s business
• employers should take reasonable steps to facilitate access by officials of a qualifying trade union
• physical entry to a workplace should not be refused solely on the basis that communication with workers is permitted in a non-physical way – nor vice versa
• access should be refused entirely only where it is reasonable in all the circumstances to do so.

What if the union doesn’t have many members?

It doesn’t matter as there is no minimum level of support needed to secure access.

What if the employer has already granted access to a trade union?

The presence of a recognised union does not mean a new access request from a different union is rejected.

How often will a trade union be able to access a workplace and how?

The government will publish “model terms” for access agreements which will include:

• access (physically, digitally or both) up to once per week
• unions must provide two working days’ notice for each visit
• employers should make available existing facilities as is reasonable to facilitate access
• employers must ensure that as far as reasonably possible, they ensure that direct communications between its workers and the union are private
• trade union officials seeking access to the workplace must comply with all reasonable instructions given by the employer.

How long can an access visit last and when should it be?

How long a visit can last is currently unknown; there is no guidance in the draft code. The union’s access to the workers should usually take place during normal working hours but at times which “minimise any possible disruption” to the employer’s activities. Consideration should be given to holding a meeting, particularly those involving a large proportion of workers, during rest periods or towards the end of a shift where possible.

Can the employer sit in on the meeting?

The employer or any representative of the employer must not attend an access meeting unless invited to do so.

What is physical access?

The draft code of practice says “where practicable, a union should be granted access to the workers at their actual workplace, and in the actual location of their work in that workplace, such as in a meeting room, or in an adjoining work area”. If the employer typically holds large workforce meetings in, for example, a meeting room or a canteen, then the employer should make the same facilities available to the union.

What is digital access?

Not all access will take the form of the physical presence of a union in a physical workplace. Access can take place “digitally” alongside or instead of physical access. Unions have the right to virtually access a group of workers in a workplace provided it does not unreasonably interfere with the employer’s business. Digital access can use the channels used by the employer in question. The starting point is that the employer would cascade factual union communications or information to workers the union has requested to be cascaded in line with the access agreement. Or it could facilitate an online meeting so the union can run a presentation and Q&A.

Does trade union access apply to all employers, regardless of size?

No, organisations with fewer than 21 workers will be entirely exempt. Some workplaces could also be exempt on grounds relating to national security or criminal justice, although less-disruptive access (digital or away from a sensitive facility) would still be required.

Does ‘fewer than 21’ apply to the workplace or employer?

The employee headcount will be assessed employer-wide. So if a workplace has only 20 staff, but another branch or location exists with more workers, then the threshold of 21 is exceeded.

Is there a fine if we don’t comply with the rules?

Yes. The government is proceeding with a three-tier enforcement model proposed in the consultation as follows:
• up to £75,000 for a first penalty
• up to £150,000 for a second penalty
• up to £500,000 fine for the third and subsequent breaches under the same access agreement.

How should employers prepare for trade union access?

Those employers that already have relationships with trade unions should consider how the reforms might affect their current arrangements. Employers who are able to agree voluntary rather than statutory arrangements on trade union access are likely to foster better engagement with a union.

Employers who have had no engagement or only limited engagement with trade unions previously have until October 2026 to prepare. Given the 15-day response time to a trade union request for access, it will be prudent to make plans on how you, as an employer, would respond.

For advice email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

Copyright © 2026 GoodHR Ltd All rights reserved.
Registered in England no. 8408047

www.goodhr.co.uk
nicola.goodridge@goodhr.co.uk
Tel. 44(0)7917 878384

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In the UK workplace, sexual harassment has traditionally been one of the most under-reported forms of misconduct. Employees stay silent not because the harm is small, but because the risks of speaking up have historically felt too high. Careers, reputations and mental health can all be affected.

With the Worker Protection (amendment of the Equality Act 2010) Act 2023 and the Employment Rights Act 2025, the UK has entered a new legislative era – reshaping how organisations must prevent harassment and how workers are protected when they blow the whistle on sexual harassment.

Since 26th October 2024 there has been a legal duty placed on employers to take “reasonable steps” to prevent sexual harassment before it happens. This duty required organisations to anticipate risks, strengthen culture and act pro-actively rather than re-actively.

If an employer fails to meet this duty, tribunals can increase any compensatory award to a claimant by 25%.

This law is due to change again in October this year with two new major, strict changes:

1. employers must now take “all reasonable steps” to prevent sexual harassment (upgrading from the previous requirement to simply take “reasonable steps”); and

2. employers are now explicitly liable if a worker is harassed by a third party (such as clients, customers or suppliers).

The other major legislative change which became effective from 6th April this year is that sexual harassment became a protected whistleblowing category in its own right, explicitly qualifying for whistleblowing protection.

This means:

• workers who report sexual harassment – past present or likely, future, can be protected from detriment or unfair dismissal

• they no longer need to “fit” their disclosure into categories like health and safety or breach of legal obligation

• employers cannot use a settlement agreement to prevent protected disclosures.

This clarifies matters. It removes ambiguity, strengthens legal recourse and signals that reporting harassment is firmly in the public interest.

Even with stronger laws, it remains a reality that whistleblowing is hard. People fear retaliation, disbelief or being labelled as “difficult”. When the perpetrator holds power in an organisation the stakes are even higher.

The new legislation doesn’t erase these fears, but it does give workers stronger legal armour and makes the case for organisations to shift their focus from passive compliance to active prevention.

Actions employers must consider are as follows:

• update whistleblowing policies to explicitly include “sexual harassment”
• train managers on the new protections and reporting routes
• strengthen anti-harassment policies and ensure they align with whistleblowing procedures
• create safe, confidential channels for disclosures
• demonstrate zero tolerance for retaliation – and mean it.

These are cultural commitments rather than a box ticking exercise. Legislation can mandate duties and protections, but it cannot, on its own create trust. That requires leadership, transparency and a willingness to confront uncomfortable truths.

The UK’s new legal framework marks a decisive shift:

• Prevent harassment
• Protect whistleblowers
• Prioritise safety over silence

Although the Government has yet to clarify exactly what “all reasonable steps “looks like, it is evident that organisations must not just embrace the letter of the law but also its spirit – workplaces must become places where people feel safe, respected and empowered to speak up – and that is the culture every worker deserves.

For assistance in amending staff handbooks do email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

Copyright © 2026 GoodHR Ltd All rights reserved.
Registered in England no. 8408047

www.goodhr.co.uk
nicola.goodridge@goodhr.co.uk
Tel. 44(0)7917 878384

The best employers are not spending too much of their time stressing about employee hangovers and prolonged chats next to the coffee machine. They are thinking about how they can use the World Cup to reengage their staff. They are bringing people together and considering how to encourage workers to bond beyond their day-to-day tasks. That could be in the form of a sweepstake or a few light hearted games. The key takeaway here is that the best approach is not to go instantly on the defence.

However, employers should plan ahead both to make the most of the impact that the FIFA World Cup can have on staff morale, as well as trying to minimise disruption.

Employers are likely to see a significant amount of interest among their workforces in the World Cup 2026, particularly given that both England and Scotland have qualified. That said, because of the time difference, the 104 football matches mainly take place late evening or early morning, with games kicking off between 5pm and 5am. See England and Scotland’s fixtures below.

1. Staff morale

Employers can use the tournament to raise their workforce’s morale with the following:

• screen key matches in the workplace
• run a sweepstake
• allow employees to watch games together during working hours (for hybrid or remote workers this could include arranging remote “watch-alongs”)
• permit special decorations to be temporarily displayed in workplaces (such as flags of participating countries).

Workplace events related to the World Cup should, however, be optional and workers should not be disadvantaged or derided if they do not want to take part.

2. Increase working hours flexibility

To further improve morale and boost employee relations, employers may permit temporary changes to working patterns to allow employees to watch games. For example, employers could let employees:

• finish early to watch an early-evening game; or
• come in later the day after a match; or
• take a couple of hours off to watch a match and make up the lost time later.

Employers may see an increase in holiday requests from employees who want time off to watch matches and are encouraged to be flexible by allowing requests at short notice where this is feasible.

3. Maintain workforce productivity during the matches

Some employers may experience a reduction in productivity because employees are watching matches when they should be working – this could become a particular problem when employees are working from home.

Employers are encouraged to strike the right note by reminding employees in advance of the World Cup, or in advance of key games, that they should not be watching the football when they should be working and should instead be planning ahead and taking annual leave where necessary.

Employers can also warn employees about unauthorised absence, for example pulling a sickie to watch games or taking sick leave on the day after a game because they have a hangover.

4. Beware the risk of discrimination

Employers need to be aware of the potential discrimination issues that could arise, for example, if they offer special arrangements for home nation fans, such as increased flexible working, they should offer the same arrangements to fans from other countries. Also staff should be made aware that harassment linked to the event, for example hostile or racist remarks about a particular country, will not be tolerated.

England’s group matches:

England v Croatia on Wednesday, June 17 at 9pm UK time
England v Ghana on Tuesday 23 June at 9pm UK time
England v Panama on Saturday 27 June at 10pm UK time

Scotland’s group matches

Scotland v Haiti on Sunday 14th June at 2am UK time
Scotland v Morocco on Friday 19th June at 11pm UK time
Scotland v Brazil on Wednesday 24th June at 11pm UK time

As an employer, what is your usual approach when it comes to events like the World Cup? Will it be business as usual or will you be trying something new to embrace the excitement?!

For advice email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

On 6 April 2026 new regulations were published to bring into force parts of the Employment Rights Act 2025 (ERA 2025) as follows:

1. Statutory sick pay (SSP) now in force from day one of absence

SSP will now be payable to eligible workers regardless of their earnings (due to the removal of the lower earnings threshold) from the first full day of sickness absence (not the fourth). A new weekly rate of SSP is also payable (the lower of 80% of average weekly earnings or the flat weekly rate of £123.25). Where a worker’s sickness absence began before 6 April 2026, transitional rules apply.

A recent ACAS survey on the ERA 2025 revealed that both employers and workers consider that paying sick pay from the first day of illness will have the biggest impact on them (43% of employers and 36% of workers). It will certainly be a significant change for employers who don’t provide enhanced contractual sick pay.

2. Parental rights

Eligible employees will have the following statutory leave entitlements from the first day of their employment:

• paternity leave – continuous service requirements removed but workers still have to be employed for 26 weeks’ before being entitled to paternity pay
• up to 18 weeks of unpaid parental leave (continuous service requirements removed)
• up to at least two weeks of unpaid parental bereavement leave for employees who suffer pregnancy loss at or before 24 weeks (new right)
• up to 52 weeks of unpaid bereaved partner’s paternity leave (new right in addition to those in the ERA 2025).

3. Collective redundancy

The maximum protective award that can be ordered by an Employment Tribunal to each employee for their employer’s failure to collectively consult on redundancies will be doubled from up to 90 days’ pay to up to 180 days’ pay. This change will significantly increase risks and costs for employers that do not comply with their collective consultation obligations.

4. Record keeping – paid holiday

The ERA 2025 amends the Working Time Regulations 1998 (WTR) to require employers to keep records for a period of six years (in any format they “reasonably think fit”) to demonstrate that workers have received their holiday pay and annual leave entitlements.

Any failure to keep sufficient records could result in enforcement action by the Fair Work Agency and/or criminal charges for the most serious breaches.

5. Whistleblowing

Reports of sexual harassment will be protected whistleblowing disclosures. This means that workers who raise concerns about sexual harassment will (1) be protected from detriment or dismissal because they have ‘blown the whistle’, and (2) any agreements that attempt to prohibit the reporting of sexual harassment – for example, clauses in settlement agreements – will be unenforceable.

6. Voluntary equality action plans

Employers with 250 or more employees are being encouraged to voluntarily publish the steps they are taking to reduce their gender pay gap and support employees experiencing menopause before this becomes mandatory in April 2027.

7. Simplification of the trade union recognition process

The changes include:

• ⁠a simple majority being required in recognition ballots (removing the previous 40% support threshold)
• removal of the likely majority test when a union submits a recognition application
• preventing an employer from blocking an independent union by quickly recognising an employer-controlled one.

Action to take

Employers should ensure that their existing policies, procedures and contracts are compliant and that staff are aware of the changes.

For assistance please email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

For employers, long notice periods can feel like a double-edged sword. On paper, they offer protection and continuity but, in practice, they can create challenges, especially if an employee disengages well before their final day.

There is no right or wrong answer to whether contracts should favour long or short notice periods. The right approach depends on the following:

• the role.
• the level of seniority.
• how notice periods are managed in the workplace.

The advantage of long notice periods

Long notice periods can provide reassurance and structure for employers:
• they allow time to recruit and brief successors.
• they support knowledge transfer and handovers, particularly in specialist or senior roles.
• they can promote workforce stability, encouraging employees to consider their next steps carefully.

In theory, longer notice periods also give HR teams flexibility to redistribute workloads, appoint interim cover, or manage client communications during transitions.

When long notice periods can cause challenges

The risk arises when an employee becomes disengaged:

• productivity may drop.
• team morale and client relationships can be affected.
• in junior roles, the commercial benefit may be limited because replacements can start quickly.

For candidates, long notice periods can also restrict career movement. In a competitive market, some employers aren’t willing to wait two to three months for junior or operational hires, which can be frustrating for strong candidates.

The benefits of shortening notice periods

Notice periods can sometimes be shortened if both parties agree, which is helpful when:

• the employee is disengaged or has accepted another role.
• a replacement has been found sooner than expected.
• business needs change and flexibility is required.

It is important that any adjustment is mutual and clearly documented. Employers cannot unilaterally reduce notice, but flexible approaches are increasingly common in practice – the employee must be mindful that if they request a shorter notice period the employer is not obliged to pay out the balance of it.

The risks of shortening notice periods

Shorter notice periods allow employees to exit cleanly and organisations to reset quickly. Teams avoid prolonged uncertainty and new hires can start sooner. However, shorter notice periods carry risks:

• knowledge gaps may emerge if replacements aren’t in place.
• workloads may increase suddenly.

Effective workforce planning and succession strategies are critical to manage these risks.

How to determine the appropriate notice period

The most effective approach is to look at the role, as follows:

• Senior, specialist, or client-facing roles often benefit from longer notice periods – paired with proactive exit management and clear handover expectations.
• Junior and operational roles often work better with shorter notice periods to maintain agility and reduce unproductive downtime.

Ultimately, notice periods should protect the business without trapping either party in an unproductive situation.

In summary:

• align notice periods with role seniority and replacement complexity.
• build in flexibility, such as garden leave clauses.
• remember notice periods can be shortened by mutual agreement.
• focus on engagement during notice, not just contractual protection.
• regularly review whether your notice periods still reflect the market reality.

Be mindful of the fact that a three month notice period is a long time to remain engaged for anyone who has found a new job – a month or two months’ notice is advisable for all but the most senior and specialist staff.

For advice do email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

The Labour party came into government promising day one parental rights and a more family friendly workplace. Reforms start to get underway from April this year, as detailed below.

Paternity leave becomes a day one right

Currently, employees need 26 weeks’ continuous service by the end of the 15th week before the expected birth week to qualify for paternity leave. For babies due on or after 5 April 2026, that requirement disappears. New starters will get the same two weeks’ paternity leave entitlement as everyone else. This brings paternity leave in line with maternity leave, which is already a day one right.

However, the same is not true of paternity pay – the service requirement of 26 weeks remains in place in order to receive statutory paternity pay. New employees can take paternity leave, but unless the company policy says otherwise, the leave would be unpaid.

Notice rules haven’t changed either. Employees still need to give notice of entitlement by the 15th week before the expected week of birth, then confirm their choice of specific dates 28 days in advance. New joiners who can’t meet these deadlines must give as much notice as is reasonably practicable.

Shared parental leave anomaly is fixed

At the moment, taking shared parental leave first means forfeiting paternity leave altogether. The new legislation corrects this and employees can now take paternity leave and pay even after a period of shared parental leave.

Unpaid parental leave is also a day one right

Unpaid parental leave currently requires a year’s service. From 6 April 2026, that qualifying period will also disappear. New employees will get access to their parental leave entitlement from day one of employment.

Extended leave for bereaved partners

Separate legislation introduces a new category of extended paternity leave for parents whose partner dies during childbirth or within a year of the birth. This is called Bereaved Partner’s Paternity Leave.

Under the new law, a bereaved partner can take up to 52 weeks leave in one block. This is a day one right. If leave starts within eight weeks of the bereavement, employees can start leave immediately on oral notice. There is no entitlement to any statutory pay and so the leave will be unpaid unless the company states otherwise.

What action should employers take?

Update your policies: You will want to update your policies to reflect the changes and remove the service requirements for paternity and parental leave.

Decide on enhanced pay: If you offer more than statutory pay, will new employees be eligible straightaway or will you demand a length of service before entitlement?

Address rights for bereaved partners: Consider adding a note to your paternity leave or compassionate leave policy to explain the new right to Bereaved Partners Paternity Leave.

Brief your managers: They may need to know about the new entitlements.

Make policies visible: Ideally, share your family leave policies before employment begins and encourage early notice.

Important points regarding probation

1. How will more employees taking family leave early in their employment affect employers’ ability to assess their performance?

2. This will matter more from 1 January 2027, when the unfair dismissal qualifying period drops to six months.

3. This means a very short window in which to assess an employee’s performance and suitability for the role before the employee qualifies for the right not to be unfairly dismissed (with uncapped compensation, under the current plans).

4. Probation management processes will need to become more robust, but managers will also need to understand that taking family leave in this window is allowed and that employees must not be penalised for it.

5. The ‘clock’ will not be paused on the unfair dismissal qualifying period, soon to be introduced, of six months.

If you would like your handbooks amended, do send them to me nicola.goodridge@goodhr.co.uk or call +44 7917 878384

Employees you are hiring now will be subject to the upcoming unfair dismissal reforms, which are due to come into force on 1 January 2027.

Unfair dismissal rights

Employees currently need two years’ continuous service before they can claim unfair dismissal.

From 1 January 2027, the qualifying period will reduce to six months. The government is adopting a ‘commencement approach’, meaning that any employee who has at least six months’ service on 1 January 2027 will have unfair dismissal protection from that date.

The first employees to benefit from the six-month qualifying period will be those who start work on 1 July 2026 and are still employed on 1 January 2027. Employees hired after 1 July 2026 will gain protection once they reach six months’ service.

Employees who join before 1 July 2026 will also benefit, because they will not have to complete the full two years to gain protection from ordinary unfair dismissal. For example, an employee who starts on 1 March 2026 will have 10 months’ service on 1 January 2027. From that date, they will meet the new six-month qualifying period and therefore gain protection a full 14 months earlier than under the current two-year qualifying period.

This does not, of course, mean their claim will succeed. It will still depend on whether the dismissal was for one of the statutory fair reasons, if the employer acted reasonably and if it followed a fair procedure.

It also remains the case that an employee can bring an automatic unfair dismissal claim, regardless of their length of service, in certain situations eg: dismissals connected to pregnancy, attempts to assert a statutory right, or making a protected disclosure (i.e. whistleblowing).

Compensation cap removal

If an employee succeeds in an ordinary unfair dismissal claim, they currently receive two types of award:

1. Basic award, calculated in a similar way to a statutory redundancy payment; and
2. Compensatory award based on what the tribunal considers “just and equitable” in the circumstances. This typically covering losses such as earnings, benefits, and pension.

At present, the compensatory award is capped at the lower of £118,223 (reviewed annually in April) or 52 weeks’ pay. However, this cap will be removed entirely from 1 January 2027. This means there will be no upper limit on the compensatory award a tribunal can make. That said, any award must still be “just and equitable”, so very high awards will not automatically follow in every case. However, where losses are substantial, such as for high earners or employees close to retirement who are unlikely to get another job, tribunals will no longer be limited by the current caps.

What do I need to do now?

Given that new starters will gain unfair dismissal rights much earlier, you need to:

• check probationary periods are no longer than six months and are not permitted to drift on beyond that time
• ensure you have a robust probationary review process so that a new starter’s suitability is fully assessed (and fully documented) before they reach six months’ service
• ensure disciplinary and capability issues are handled properly as once an employee has six months’ service any dismissal decision and process followed must be fair and reasonable and fully documented.

Important to note:

If decisions are left too late, there is a real risk that the employee will already have the necessary service or be close enough that they are deemed to have it to obtain unfair dismissal rights as follows:

1. where an employee is within one week of reaching the qualifying period and the employer fails to give at least the statutory minimum notice, the employee can add that notice period to their termination date to give them enough service to bring an ordinary unfair dismissal claim. The only exception to this is where the employer had the right to dismiss the employee without notice

2. if an employee is dismissed so that their termination date falls on the day before they would have reached the qualifying service threshold, a recent court case held that you must count both the first and last days of employment which means that they are still treated as having achieved that service for the purposes of ordinary unfair dismissal.

For advice or assistance email nicola.goodridge@goodhr.co.uk or call +44 7917 878384

Copyright © 2026 GoodHR Ltd All rights reserved.
Registered in England no. 8408047

www.goodhr.co.uk
nicola.goodridge@goodhr.co.uk
Tel. 44(0)7917 878384

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The ‘day one unfair dismissal’ rights were one of the main sticking points for the new Employment Rights Act with the majority in the House of Lords being concerned at the impact on business – several times they had proposed amendments to this reform, suggesting that a six-month qualifying period would be a better balance between helping workers and businesses and would avoid complications arising from the proposed “initial period of employment”.

The Employment Rights Act 2025 therefore introduces the following important changes:

• the qualifying period of employment for a UK employee gaining unfair dismissal protection will be six months, reduced from the current two years.
• the cap on the amount of compensation that can be awarded by an employment tribunal for unfair dismissal will be removed, leaving compensation unlimited in the same way as it is for discrimination and whistleblowing claims.
• employees will have six months from their termination date to initiate an unfair dismissal claim, up from the current three months.

Key details:

Effective date: 1 January 2027

Who is covered: employees with at least six months’ service on 1 January 2027 will automatically gain protection from unfair dismissal on that date. It is important to note that the new six month threshold applies to dismissals on or after 1 January 2027, rather than only to new recruits from that date.

Points to note are:
• there will still be some circumstances in which individuals have day one protection from unfair dismissal (eg whistleblowers)
• there will no longer be a cap on unfair dismissal awards (the current cap on compensatory awards being the lower of the year’s pay and £118,223)

Compensation will still be based on lost earnings and it should be remembered that the average unfair dismissal award is currently around £14,000, so well below the current cap. Removal of the cap on compensation could, however, have a significant impact on the ability to settle claims if claimants with unrealistic initial expectations can no longer be told that there is a clear limit to their claim.

Action by employers:

These changes are significant and employers should use the 2026 lead-in period to do the following:
• strengthen recruitment practices
• review existing probationary periods and ensure multiple checkpoints through probation
• handle conduct and performance issues promptly and document all incidents thoroughly
• refresh manager training on fair process and note early intervention to avoid crossing the six month threshold without action
• look carefully at processes that apply to the expiry of fixed-term contracts.

The importance of acting fairly is compounded by changes to the unfair dismissal compensation regime, with the financial stakes significantly raised for employers who get it wrong.

In summary:
• if you are an employee: you’ll get unfair dismissal rights much sooner, after just six months of employment.
• if you are an employer: you can no longer rely on the period of two years to dismiss someone without facing an unfair dismissal claim; focus on robust early management and clear documentation.

For any advice please email nicola.goodridge@goodhr.co.uk or call +44 7917 878384