The government has recently convened trade unions and business representatives to discuss the Employment Rights Bill. These discussions have resulted in agreements that will help the Bill progress to Royal Assent and enable the proposed changes to take effect as planned.

Key Decisions Agreed

  • Unfair dismissal qualifying period reduced: The qualifying period for unfair dismissal claims will be shortened from 24 months to six months. Existing day-one protections against discrimination and automatically unfair dismissals will remain in place.

  • Day-one rights: From April 2026, employees are expected to gain day-one entitlements to sick pay and paternity leave.

  • Fair Work Agency: The government intends to establish the Fair Work Agency in April 2026. This new body will enforce employment rules, provide guidance to workers and employers, and have strong powers to investigate and take action against businesses that breach the law.

The reforms introduced in the Employment Rights Bill represent a major shift in employment law. It is important for businesses to stay informed on how these changes could affect policies, employment contracts, and workplace practices from 2026 onwards.

See: https://www.gov.uk/government/news/an-update-on-the-employment-rights-bill