Rights to guaranteed hours and payment for short-notice cancellation of shifts will mean employers will have to plan carefully for staffing needs – this may impact the availability of work for those in casual work as employers limit their exposure.
Not since 1974 has the qualifying period for unfair dismissal been as low as six months with the current limit at two years.
But, following yesterday’s final battle in the House of Lords, the new Employment Rights Bill will do just that from January 2027.
This means that employees engaged from July 2026 onwards will benefit from the shorter qualifying period and can claim unfair dismissal if they are dismissed after six months.
As a result, it is even more important for employers to have robust recruitment selection processes, actively manage new starters, not ignore niggling problems as teething issues and manage probationary periods effectively.
Any delays in taking action and employers will have to deal with additional employment protections and the associated processes involved.
The effect will undoubtedly be more unfair dismissal claims in the tribunal as more people are entitled to lodge a complaint.
The bill also lifts the cap (currently £118,223) on unfair dismissal compensation awards but, in practice, most successful claims do not reach even the current cap, so the effect of this new law will not necessarily impact many claims.
In reality, it is only likely to affect higher earners who will be entitled to claim for sums in excess of their annual salary if they can show the tribunal evidence of such losses, subject to the usual obligations to mitigate any losses.
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