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Employment Law Changes: What You Need to Know

Clockwork HR

The Labour Party has released more details on its proposed Employment Rights Bill, which will bring significant changes to employment law. While the reforms are substantial, the Bill still needs to go through consultation and legislative processes, meaning the majority of changes won’t come into effect until 2026. This timeline allows businesses to update policies, adjust procedures, and prepare for these changes.

Here’s an overview of the key proposed reforms:

Unfair Dismissal

Employees need two years’ service to qualify for unfair dismissal claims. Under the new proposal, employees can make these claims from day one. The government is considering a statutory probation period of nine months, and it will be crucial to ensure probation procedures are clear and compliant. This reform is expected no sooner than autumn 2026.

Statutory Sick Pay (SSP)

SSP eligibility will shift to include day-one coverage for employees, rather than the current three-day wait period.

Zero-hours Contracts

Changes are also anticipated for zero-hours contracts, though details are complex and still under discussion. Further clarification is expected as the Bill progresses.

Flexible Working

Employers will need to meet a new standard when rejecting flexible working requests, demonstrating both a legally valid reason and a “reasonable” basis for refusal. Further guidance on how this will work in practice is forthcoming.

Paternity Leave and Unpaid Parental Leave

The Bill proposes that paternity leave and unpaid parental leave will be available from day one of employment, aligning with current maternity leave policies.

Bereavement Leave

A new statutory right to bereavement leave will be introduced. Many businesses already offer bereavement leave, so this could positively formalise existing practices.

These proposed changes reflect significant shifts in employee rights and protections. While 2026 may seem far off, keeping informed and preparing for these changes will help businesses stay ahead of new compliance requirements.