Upcoming Changes

Date

Planned and Expected Changes

April 2025

Statutory Rates – In April each year, there is generally an increase in statutory rates. These include:

• National minimum wage
• Statutory maternity pay and payments relating to other family friendly rights
• Statutory sick pay
• Compensation for unfair dismissal

Please see the Employment Facts section for the latest rates. 

April 2025

Neonatal care leave - The overall intention of this Act is for a parent whose child is admitted to neonatal care (within 28 days from the day after birth) to have a new statutory right, from the outset of their employment, to take neonatal care leave. The maximum length of the leave and the eligibility conditions will be set out in the regulations (yet to be published). However, the Government has previously indicated that the maximum period of leave will be set at 12 weeks.

In addition, parents taking neonatal care leave who have at least 26 weeks’ continuous service will be entitled to neonatal care pay, subject to eligibility conditions which are likely to be similar to other types of statutory pay. Although, it is thought neonatal care pay will be calculated at the normal flat rate for statutory pay, rather than the enhanced rate that applies to the first six weeks of statutory maternity pay.

The bill received royal assent on 24 May 2023 however there is a considerable amount of detail still to be resolved, so this is not expected to be implemented until April 2025.

Date

Planned and Expected Changes

Expected 2026

Unfair Dismissal and Day-One Rights
One of the most notable changes in the Bill is the introduction of day-one rights for unfair dismissal. Currently, employees needed two years of continuous service to claim unfair dismissal. The new Bill removes this requirement, allowing employees to claim unfair dismissal from the first day of employment. However, a statutory probationary period of nine months is proposed, during which a lighter-touch dismissal process will apply. This change aims to provide immediate protection to employees while allowing employers to assess new hires' suitability.

Expected 2026

Flexible Working as a Default Right
The Bill proposes making flexible working a default right, requiring employers to grant flexible working requests unless it is unreasonable to do so. Employers must provide clear reasons for any refusal, ensuring transparency and fairness in the decision-making process. This change is designed to promote work-life balance and accommodate diverse working arrangements, reflecting modern workforce needs.

Expected 2026

Zero-Hours Contracts and Guaranteed Hours
The Bill addresses the issue of zero-hours contracts by requiring employers to offer guaranteed-hours contracts to workers who regularly work more hours than their contracts indicate. This change aims to provide greater job security and predictability for workers. Employers must also give reasonable notice of any shift changes and compensate workers for late cancellations, ensuring fair treatment and reducing the exploitation of zero-hours contracts.

Expected 2026

Statutory Sick Pay and Family Leave
Significant changes are proposed for statutory sick pay (SSP) and family leave. The Bill removes the waiting period and lower earnings limit for SSP, making it available from the first day of absence. Additionally, day-one rights for paternity leave, unpaid parental leave, and bereavement leave are introduced, providing support for employees facing family-related challenges. These changes aim to enhance the social safety net for workers and support family-friendly policies.

Expected 2026

Ending Fire and Rehire Practices
The Bill seeks to end the controversial practice of "fire and rehire," where employees are dismissed and re-engaged under new terms. It will be automatically unfair to dismiss an employee for refusing to accept a contract variation unless the employer can demonstrate that the changes are necessary to address financial difficulties threatening the business's viability. This provision aims to protect employees from unfair treatment while allowing businesses to make necessary adjustments in genuine financial distress.

Expected 2026

Strengthened Protections Against Harassment
The Bill introduces strengthened protections against workplace harassment, including third-party harassment. Employers will be required to take "all reasonable steps" to prevent harassment, raising the standard from the previous requirement of "reasonable steps." This change aims to create safer and more inclusive workplaces by holding employers accountable for preventing harassment by both employees and third parties.

Expected 2026

Collective Redundancy and Trade Union Rights
The Bill proposes changes to collective redundancy consultation requirements, removing the "single establishment" limitation. This means that collective consultation obligations will apply across the entire business, not just at individual sites. Additionally, the Bill enhances trade union rights, simplifying the recognition process and allowing electronic balloting. These changes aim to strengthen workers' collective bargaining power and ensure fair treatment during redundancies.

Expected 2026

Establishment of the Fair Work Agency
A new enforcement body, the Fair Work Agency, will be established to consolidate existing enforcement functions and ensure compliance with employment rights. This agency will have the authority to investigate and take action against non-compliant businesses, providing a robust mechanism for enforcing the new rights and protections introduced by the Bill. The creation of this agency underscores the government's commitment to upholding workers' rights and ensuring fair treatment in the workplace.