Changes to sick pay and paternity leave among concerns for firms under employment reforms
Changes to sick pay, paternity leave and unfair dismissal will pose the biggest challenge for businesses under new rules, according to research.
A survey of more than 1,000 employers about the Employment Rights Act found that one in three said paying statutory sick pay from the first day of illness would be the hardest, while more than one in four said it would be the right to take paternity leave from the first day of employment.
New unfair dismissal protections, reducing the qualifying period from two years to six months, were also ranked among the top concerns.
Baroness Maggie Jones, who chairs employment relations service Acas, said: “The reforms in the Employment Rights Act are the biggest shake-up to employment law in a generation, and it is vital that employers get up to speed quickly.
“The new day-one rights on sick pay and paternity are already in effect and new protections against unfair dismissals are set to come in next year.
“Acas has updated its advice on probations to reflect the new changes on unfair dismissals, which is a significant change in the law.
“Businesses that get on top of all the changes early can prevent costly disputes from happening.”
From 1 January 2027, protection from unfair dismissal will become a right after six months of being in a job. Currently, someone must have worked for their employer for two years before claiming unfair dismissal.
The limit on the amount of compensation for unfair dismissal will also be removed. Acas has published new advice on probation periods. A probation period is a time at the start of employment to check if someone is suitable for a job.
In a statement Acas added: “There is no legal right to have a probation period, but some employers may be thinking about reducing the period to less than six months before the law changes from 1 January 2027. However, this does not avoid legal risks.”