Key takeaways
Major reforms to unfair dismissal
Day-one unfair dismissal abandoned, employees will instead need 6 months’ service.
Sick pay and leave rights begin from the first day
Sick pay from the first day of absence, day one rights to paternity, parental, bereavement and pregnancy loss leave.
Flexible working must be fairly considered
Employers must explain any refusal clearly.
The Employment Rights Bill, which has been heavily amended during its parliamentary passage, introduces significant changes to employment protections. Crucially, when the legislation comes into force, employees will be entitled to a wide range of employment rights from the first day of their employment.
Day one rights transforming employment protections
Once implemented, the Bill will make various amendments to the Employment Rights Act 1996 to transform the employment rights of employees – with many rights starting on the first day of employment
Unfair dismissal protection after 6 months’ service
In what would have been the most radical change to unfair dismissal law in over 50 years, the Employment Rights Bill originally proposed that the right not to be unfairly dismissed would become a day-one right. However, the government was unable to persuade the House of Lords to vote in favour of this change and the Bill was caught up in a period of parliamentary ‘ping-pong’.
To break this deadlock, on 27 November 2025, the government announced that agreement had been reached with key stakeholders on the unfair dismissal elements of the Bill and that it was u-turning on the introduction of a day-one right to claim unfair dismissal. Instead, it is now proposed that employees will need 6 months’ service to claim unfair dismissal (unless they are dismissed for automatically unfair or discriminatory grounds).
The government has confirmed that it also intends to lift the unfair dismissal compensation cap. Although it is currently less clear precisely what this means, it seems likely this refers to the 12-month wage cap which is currently in place.
The government originally planned to bring the unfair dismissal aspects of the Employment Rights Bill (i.e. day-one unfair dismissal) into force in 2027. However, due to the switch to a 6-month qualifying service requirement, it is currently uncertain whether this original timetable stands. This change is much easier to implement and could arguably be brought into force in 2026.
Sick pay from the first day of absence
The Bill will remove the current 3-day waiting period for entitlement to statutory sick pay (SSP), meaning that SSP will be payable from day one of absence.
The Bill also removes the requirement to earn at least the lower earnings limit (currently £125 per week) to be entitled to SSP, although SSP rates will be tapered for those earning below the lower earnings limit.
The SSP reforms are due to be implemented in April 2026.
Day one rights – paternity and parental leave
The Employment Rights Bill extends day-one rights to paternity leave and unpaid parental leave, removing the existing 26-week qualifying period. However, there is no explicit link between these rights and paternity pay. This means employees will be entitled to take paternity leave from day one, but entitlement to paternity pay will remain separate (requiring 26 weeks’ service)- mirroring the structure of maternity leave and pay.
The government has committed to implement these new rights in April 2026.
Day one rights – bereavement leave
The Bill also introduces a day-one right to unpaid bereavement leave for employees experiencing the loss of a close relative. This entitlement is based on the existing parental bereavement leave regime but applies to relatives beyond a parent’s child.
Key points include:
Employees can take at least one week’s unpaid bereavement leave for the death of an eligible relative
Regulations will define which relatives qualify for bereavement leave and when it can be taken
If multiple bereavements occur, employees will be entitled to separate leave for each loss
Regulations will flesh out the finer details of bereavement leave. Key points arising from the consultation on the regulations include:
Types of familial relationships in scope: should cover immediate family members only, apply to a wider category of extended family relationships, or be based on the importance that person played in the employee’s life);
Duration: should employees be able to take one, two or more weeks of unpaid leave following a bereavement, or should the length vary depending on the circumstances (for example, depending on the closeness of the familial relationship), and should they be required to take bereavement leave continuously in a single block or allowed to take it discontinuously (e.g. broken into units of either one week or one day); and
Timing: should employees be required to use up their leave within 56 days, one year or 56 weeks of the bereavement.
The government plans to implement this extended bereavement leave at some point in 2027.
Day one rights – pregnancy loss/miscarriage leave
The Bill introduces a new form of bereavement leave for pregnancy loss. This will allow cover pregnancy losses before 24 weeks of pregnancy.
Regulations will flesh out the finer details of pregnancy loss leave. Key points arising from the consultation on the content of those regulations include:
Types of pregnancy loss in scope: as well as miscarriage, should this also include abortions, ectopic pregnancy, vanishing twin syndrome and IVF embryo transfer loss;
Scope of entitlement: whether leave should only be available to the person suffering the pregnancy loss or extended to others closely connected to them/the lost baby;
Duration: should employees be able to take one, two or more weeks of unpaid leave following a pregnancy loss, and should leave be taken continuously in a single block or discontinuously (for example, broken into units of either one week or one day); and
Timing: should employees be required to use up their leave within 56 days, one year or 56 weeks of the pregnancy loss.
The government plans to implement pregnancy loss leave at some point in 2027.
Day one rights - flexible working by default
The Employment Rights Bill adapts and builds on the April 2024 reforms to flexible working. An employer will only be permitted to refuse a flexible working request if:
it considers that specified business ground(s) apply; and
if it is “reasonable” for the employer to refuse the request on that ground(s).
The business grounds an employer can rely on replicate those currently in use.
Regulations will specify the steps an employer must take in order to comply with the requirement to consult an employee before rejecting a flexible working request.
Where the employee’s flexible working request is refused, the employer will be required to notify the employee of the ground(s) for the refusal and explain why it considers it “reasonable” to refuse the request. In practical terms, this means that the employer must go beyond simply referring to one of the permitted reasons for refusal, it must actually explain why it believes that reason applies. It is anticipated that regulations will specify that the employer must provide a written notice of its reasons for refusal.
The employment tribunal will also have a new power to consider a claim that the employer has “failed to act” in accordance with the above requirements. This appears to allow an employee to claim that it was not “reasonable” for the employer to reject their flexible working request on the cited business ground. Essentially, this appears to give the employment tribunal the power to check the employer’s rationale and ask: was it “reasonable” for the employer to refuse the request on the cited business ground? How much evidence tribunals will expect from employers before accepting their business rationale, and how they will decide the question of reasonableness, is not yet clear.
