Category: Employment Law
Set to be the biggest change in employment legislation since the Employment Rights Act in 1996, the changes from the new Employment Rights Bill are expected to have a big impact.
The Bill is currently going through parliament and we will need to wait to see what the final version looks like with many of the new laws coming into effect in 2026.
In this blog post, we explore the three main changes coming up and what this means for you as a small business owner…
Unfair dismissal protection
Currently, legislation requires that employees have two years of continuous service before they are entitled to claim ‘ordinary unfair dismissal’ at a tribunal. This is where an employee can take action with the help of an employment tribunal if they feel they’ve been dismissed unfairly.
New changes mean that a claim for unfair dismissal will become a right from the very first day of employment. All employees – no matter how long they’ve worked for you – will be able to claim unfair dismissal at a tribunal.
It’s worth noting this legislation would not prevent an employer from carrying out a fair dismissal – meaning any dismissal that has followed the correct process and is related to capability, conduct, redundancy, legal contravention or “some other substantial reason”.
However, it does mean that extra care will have to be taken right from day one to ensure that the correct legal process has been followed when a dismissal takes place.
Family-friendly rights
Similarly to unfair dismissal claims, it’s planned for employees to be entitled to parental leave from their very first day of employment.
Alongside this, the government is committed to providing further protection for pregnant women. It could become unlawful to dismiss a woman who is pregnant for six months after her return. The aim is to provide new mothers with certainty that the law is on their side. Paid carers’ leave and bereavement leave are also planned to be introduced.
Guaranteed hours
Employers will need to offer employees a guaranteed-hour contract based on their hours worked over a 12-week period. Workers are also to be entitled to reasonable notice of shift changes and compensation for cancelled shifts.
It’s also expected that ‘exploitative’ zero-hour contracts will be banned. These types of contracts have long been criticised for how little protection they offer to employees.
What does this mean for you?
To avoid falling foul when it comes to your employees’ rights, be sure to review your policies well ahead of when these changes are due to come into effect. For some businesses, these changes could mean a significant overhaul.
You’ll likely need to dig out employment contracts and employee handbooks to check everything is aligned with these new changes. If you don’t, you could end up facing a substantial fine or other penalties.
Still in need of some extra guidance? Our Managing Director Dan Jenkins will be delivering a free webinar on Wednesday 5th February at 10:30am on everything you need to know about the new Bill as a small business owner. Register your space here.
At Access2 Human Resources, we can offer audits of all of your important HR documents to make sure you’re compliant across the board.
Get in touch here to find out how we can support you with these upcoming changes.