Employment Rights Bill: Key Updates on Unfair Dismissal and Worker Protections

The government has recently brought together trade unions and business representatives to discuss the Employment Rights Bill. These talks have led to conclusions that will assist the Bill to reach Royal Assent and allow the changes it proposes to take effect as planned.

Here we summarise the decisions made.

• Unfair dismissal qualifying period reduced: The qualifying period for unfair dismissals will be cut from 24 months to six months. Existing day one protection against discrimination and automatically unfair dismissal will be maintained.
• Day one rights: It is planned that from April 2026, employees will gain day one rights to sick pay and paternity leave.
• Fair Work Agency: The government also plans to launch the Fair Work Agency in April 2026. This new body will take on a role in enforcing the rules and providing advice to workers and employers. It will also have strong powers to investigate and take action against businesses that flout the law.

The package of reforms included in the Employment Rights Bill marks a significant shift in employment law. We recommend keeping up to date with how these changes may affect your business’ policies, contracts, and workplace practices from 2026 onwards.

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