The employment law changes employers need to act on now

Employment law has already changed in important ways, and further reforms are expected over the next 6 to 12 months. For many employers, the real risk is not missing a headline change but assuming “how we’ve always done things” is still good enough. Small missteps in sickness absence, probation, or handling complaints now carry much bigger consequences. Employers should review their documents, processes, and manager training now rather than wait for issues to arise.

In this Keynote, Employment partner Gearalt Fahy summarises the main changes that have already taken effect, the reforms expected next, and the practical implications for employers.

What has already changed?

Neonatal care leave and pay

• Change: Eligible employees now have a right to neonatal care leave and if they qualify, statutory neonatal care pay.
• Why it matters: Family leave policies and manager guidance should already reflect this.
• What to consider: These cases are sensitive and can be mishandled without a clear process.

Preventing sexual harassment and handling reports

• Change: Reports of sexual harassment can now amount to whistleblowing in the right circumstances, giving workers additional protection from detriment or dismissal where concerns are mishandled.
• Why it matters: A policy on its own is not enough. How concerns are raised, investigated, and followed up is under much closer scrutiny and employers now face potential dual exposure to both harassment and whistleblowing claims.
• What to consider: This is a legal, cultural, and crucially reputational issue. Employers should review training, reporting routes, risk assessment and investigation processes, and make sure managers understand the importance of responding properly and avoiding any form of retaliation.

Statutory Sick Pay

• Change: Since 6 April 2026, Statutory Sick Pay (SSP) is payable from day one of sickness absence. The three-day waiting period has been abolished and the lower earnings limit removed, meaning more staff now qualify.
• Why it matters: Short absences can create immediate payroll and cost implications, particularly for lower-paid and part-time staff.
• What to consider: Make sure payroll systems and absence processes reflect the new SSP rules and that managers understand the financial impact of short-term absence.

Day-one paternity and unpaid parental leave

• Change: Since 6 April 2026, paternity leave and unpaid parental leave are day-one rights, with no minimum service requirement.
• Why it matters: New starters can request these rights immediately and treating them as service-dependent benefits risks complaints and claims.
• What to consider: Update family leave policies and ensure managers handle requests consistently, regardless of length of service.

Collective redundancies

• Change: Since 6 April 2026, the maximum protective award for failing to properly consult on collective redundancies has doubled from 90 days’ pay to 180 days’ pay.
• Why it matters: The financial consequences of getting the process wrong are now significantly higher.
• What to consider: If redundancies are even a possibility, plan consultation carefully and keep clear records rather than trying to fix issues after the event.

Holiday pay and holiday entitlement records

• Position: The law itself has not fundamentally changed, but scrutiny of holiday pay calculations and record‑keeping has increased.
• Why it matters: Poor or incomplete records make disputes harder to defend, particularly for staff with irregular hours or non‑standard working patterns.
• What to consider: Review holiday calculations and record-keeping and ask whether they would stand up to challenge.

What is coming next?

Unfair dismissal

• Expected change: The qualifying period for ordinary unfair dismissal claims is expected to reduce from two years to six months from 1 January 2027.
• Why it matters: Employers will have far less room for informal probation management or delayed decision-making.
• What to consider: Recruitment, onboarding, probation reviews, and documentation all need to be tighter.

Fire and rehire

• Expected change: Using dismissal and re-engagement to force through contractual change is expected to face tighter legal restrictions, with increased risk that such dismissals will be treated as automatically unfair (save in narrow circumstances).
• Why it matters: Employers may have far less leverage when seeking to change terms.
• What to consider: Plan early, consult properly, and focus on agreement rather than imposition.

Tribunal time limits

• Expected change: Time limits for bringing most Employment Tribunal claims are expected to extend from three months to six months.
• Why it matters: Claims may be brought much later, increasing evidential and record-keeping risk.
• What to consider: Retain key documents for longer and aim to resolve disputes promptly rather than letting issues drift.

Wider reform still to come

• Expected change: Further changes are still moving through consultation and phased implementation.
• Why it matters: The overall direction is clear: more worker protection, more process, more records, and more scrutiny.
• What to consider: Employers should not assume the current position will remain unchanged for long.

What should employers do now?

• Review policies on sickness, family leave, harassment, holiday pay, and disciplinary process.
• Check contracts, offer letters, and probation arrangements.
• Make sure payroll reflects current statutory rates and SSP rules.
• Train managers to deal with issues earlier, more consistently, and with better records.
• Move away from informal practices and make sure important decisions are documented.

These changes affect day-to-day management, payroll, record-keeping, and employee relations. Employers that prepare early will be better placed than those that wait until issues arise.

If these changes raise questions for your business, or you would like a second view on your contracts, policies, or approach, please contact Gearalt Fahy.