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The Employment Rights Act was passed into law at the very end of last year and the effects of it will be felt throughout 2026 and 2027.
Such a shakeup will bring with it many changes that employers need to manage and the litany of new day-one rights could catch unprepared employers out.
As such, it is vital that you understand the day-one rights that are being introduced and how they may impact your financial plans.
What day-one rights will workers now have?
Prospective parents are going to benefit from a slight rebalancing of their right to take family leave.
There is still an ongoing debate about how to manage the disparity between maternity and paternity leave and the Employment Rights Act seems to be a slight step towards addressing this.
Due to it centring on a protected characteristic, maternity leave has enabled birthing parents a day-one right to paid leave without it impacting their career prospects.
Non-birthing parents have been less fortunate as they have had to work continuously for at least 26 weeks by the end of the 15th week before the baby is due to qualify for parental leave.
The Employment Rights Act is set to make paternity and parental leave day-one rights, so employers will need to be understanding if a new employee needs to take time away from work due to parental responsibilities.
Many advocates are hoping that this will eventually lead to a greater reformation of the way that paternity and parental leave are handled so that childcare responsibilities are not tied by maternity leave to the birthing parent.
Bereavement leave is also set to be accessible to any worker from day one, but the exact way in which the validity will be determined has not yet been revealed.
It is suspected that the deaths of close relatives will qualify a person for bereavement leave, but who is included in the category remains to be seen.
The proposed bereavement leave will be applicable under the following conditions:
- Employees can take one week’s bereavement leave for the death of an eligible relative
- Leave must be taken within 56 days of the death
- If multiple bereavements occur, employees will be entitled to separate leave for each loss
What happened to the unfair dismissal protections?
For anyone who followed the news of the Employment Rights Act as it made its way through parliament, you may recall there was an eleventh-hour change to unfair dismissal protection.
It was set to be a day-one right, but business advocates highlighted the issues that employers would face when trying to recruit staff if they could not use probation periods effectively.
Even the trade unions conceded the point, resulting in the compromise of unfair dismissal protections kicking in after six months rather than two years.
This should inspire employers to take a probation period seriously and make a final decision about the suitability of a new employee within the first five months of their employment.
This will allow for the termination of contracts without the risk of having to manage unfair dismissal claims.
How will this impact my business?
The Employment Rights Act is going to change the way that businesses manage their teams.
Even if there are still months to go before the changes come to pass, you should start preparing early to ensure you do not get caught off guard.
Seeking professional advice and support is the best way to stay compliant with all of the upcoming changes.
Speak to our HR team for professional support in keeping compliant with the Employment Rights Act.