Do you have the right skills in place for the employment changes coming?

Although we don’t know all the changes that it will bring, it will be the biggest shake up to employment rights in quite some time. Its intention, to bolster worker security and fairness, also requires agile, skills-led responses from employers. The anticipated changes will bring a range of new employment rights for employees, and consequently will have a huge impact on businesses. So, before these changes come in, it seems that now is the right time to ask; do you have the right skills in place in your organisation to manage these changes?

On the 1 July 2025, the Government published a roadmap for the consultation and implementation of the changes outlined in the ERB.

Arguably the biggest change will see the current two-year qualifying service requirement for unfair dismissal claims being removed, and it is currently proposed that all workers will have unfair dismissal protection from day one of employment. It is anticipated that there will be a statutory probationary period during which during which a modified unfair dismissal test will apply. We still await to hear what length the statutory probationary period will be, but the Government had indication a preference of a nine-month period to be included. The Government’s roadmap states that this change will not come in until 2027, although its not known at this stage at which point in the year it would be.

The practicality of this proposed change is that it will be important to ensure that all new employees have a probationary period included within their contract, and it will be vital that performance is regularly reviewed during this time. In addition, employers will have to consider their disciplinary and dismissal processes to ensure these align with the new requirements. As an organisation, the question to ask now is do you have the people internally who can do this, and do you have systems in place to deal with performance issues during probationary periods? Think now about how you might well manage this; do you need to upskill people internally, or do you need external support? The unfair dismissal changes will not come into effect until 2027, but we all know that time can go quickly in business, so think now about how you’re going to deal with this change in the coming year.

Another notable change, both in terms of costs and practicalities is the fact that the current three-day waiting period for statutory sick pay (SSP) will be removed, so that it is available from day one, and the roadmap outlines and implementation date of April 2026 for this. The earnings threshold will also be removed so that SSP is available to all workers regardless of their earnings. Minimum wage will be amended to reflect cost of living and will apply from age 18, and there will be a new duty on employers to keep holiday records showing statutory holiday entitlement and pay for at least six years. At this stage, employers should review their sick pay policies and contractual provisions on SSP, to make sure they know what changes need to be made. Think about the financial implications of the changes to minimum wage, and the impact that this will have on your workforce. In addition, think now about how holidays are recorded internally, so that a complete turnaround of procedure isn’t needed as soon as this change comes in to force.

Another adjustment is the proposal of paternity leave and unpaid parental leave becoming a day one right. The current qualifying periods for paternity leave of 26 weeks and unpaid parental leave of one year, will be removed, so that employees will be able to take leave from day one, and it is proposed that this will also come into force in April 2026. This will extend these entitlements to a larger proportion of employees meaning that businesses will need to make sure they can cover any periods of leave taken by these employees, and policies and procedures will need to be updated to ensure this is managed lawfully.

While a lot of the specifics around the Bill remain to be seen, and there a lot which haven’t been covered off here, one thing which is clear is that change is coming. For businesses who want to recruit and retain great employees, it is important to get the strategy of how to manage these changes correctly. Think now about what external or internal resources you need to ensure compliance with legislation, and remain engaged with staff and stakeholders. Although April 2026 seems a long way off just now, it will be here before we know it, and as a business you want to be prepared in the best way possible. Rather than stifle recruitment and adaptability, this proactive approach can enhance organisational resilience, engagement, and long-term success.