Understanding day one rights: A major shift in UK employment law

The Employment Rights Bill published by the Labour party will bring in new day-one rights to safeguard workers from the start of their employment, eliminating the current service requirements for certain protections. This means employees will have immediate rights from day one.

Even though these changes might be delayed until 2026, it’s evident that activity will surge in the meantime and we anticipate a substantial increase in probationary case management:

• Case management activity could potentially rise by 100% to 230%.
• This could require a 13% increase in HR resources, especially for employee relations case advisors, requiring an additional advisor for every eight existing advisors.
• If further legislative changes are made, the resource need could escalate by up to 25%.

What are day one rights in the Employment Rights Bill?

Day one right to unfair dismissal

Stefan Mars, Head of Legal at Halborns, states, “One of the most impactful changes is the elimination of the two-year service requirement to claim unfair dismissal. Under the new Bill, employees will have the right to challenge unfair dismissals from day one. The Bill also introduces a ‘light touch’ procedure for dismissals during probationary periods, where employers are encouraged to hold a meeting to explain their concerns and allow the employee to be accompanied by a trade union representative or colleague.”

For employers, this change means a need for more rigorous probationary management. Without the buffer of a two-year qualifying period, businesses must ensure that managers are well-trained in setting clear objectives, conducting performance reviews, and documenting concerns throughout the probationary period. Clear responsibilities and performance metrics for people managers should be established to ensure accountability in managing employee relations matters effectively.

Jane Bradshaw-Jones, HR Business Partner at AdviserPlus, adds, “This is such an important point for organisations to consider because it goes far beyond policy updates. Many accidental managers are not well-trained and aware of their responsibilities when it comes to probationary periods, and that is going to need to change.”

“Thorough training and clear accountability are required to ensure managers are setting appropriate objectives and conducting appropriate reviews during the probation period to thoroughly assess whether the employee is fit for the future. This will put a significant additional workload on managers, and they need to be prepared and well-supported.”

Day one right to statutory sick pay (SSP)

The current system for statutory sick pay (SSP) includes a three-day waiting period before employees can receive SSP, and employees must earn at least £123 a week to qualify. The proposed Bill eliminates these requirements, making all employees and workers eligible for SSP from the first day of illness, regardless of their income.

Jane stated, “This will be a significant change. From an employee’s perspective, it has the potential to offer improved financial security during periods of illness and reduce the stress of being off sick, knowing they will be paid from the first day of their illness.”

“The heightened costs and complexity for employers could lead them to think about reducing their workforce or implementing stricter sickness policies. Employers will need to update their payroll systems to comply with the new rules and ensure that employees are paid accurately.”

Proactively managing sickness absences to ensure that employees’ rights are respected while also addressing the business needs could be complex. This highlights the need to empower managers to support employees’ well-being, address health concerns early, and be aware of legal obligations under SSP rules. To effectively manage these changes, employers should also consider investing in HR technology that enables this.

With our award-winning case management system accurately tracking employee relations cases, you will gain real-time absence insights to forecast trends and identify the root cause of issues. This will help in shaping a stronger employee absence management strategy. Watch the video below, or find out how empower® can assist managers in managing sickness absence here.

Day one family rights

The Employment Rights Bill aims to provide parental leave, including paternity and adoption leave, to employees right from their first day of employment, eliminating the current service requirements. This change poses a new challenge for many managers.

Under this new policy, line managers will need to navigate complex regulations related to family leave entitlements. This emphasises the importance of having the right HR tools and training in place to avoid issues.

Balancing team productivity with ensuring compliance and managing sensitive discussions with employees about family rights is a crucial responsibility for people managers in creating a positive employee experience. Therefore, businesses need to start evaluating how they can support managers in getting ready for this transition.

Looking ahead: The impact of employment right reform on employers

Changes in employment laws will greatly impact the relationship between employers and employees. The immediate availability of protections like unfair dismissal and statutory sick pay (SSP) may result in more tribunal claims, sick leaves, and administrative challenges if not handled properly. Although these “day one rights” won’t be fully enforced until 2026, businesses should not delay in taking proactive measures to prepare, including:

Legal and HR policy updates

Employers should review and consider what changes are needed in employment contracts, probationary processes, and HR policies to comply with the new legislation. This includes extending probationary periods and updating policies on dismissals, sickness management, and parental leave, as well as ensuring flexibility in fixed-term contracts.

The Bill also emphasises the government’s commitment to enhancing workers’ rights and aims to create a fairer workplace. Although it does not explicitly mention “equal pay” like previous legislation such as the Equal Pay Act, the focus on gender equality and the gender pay gap indicates a strong intention to address pay disparities through proposed action plans.

Explore how we can help you review your equal pay policies here.

Line manager training and support

Empowering managers is crucial in today’s workplace, where they face mental health challenges, hybrid work dynamics, and changing employment laws.

• By developing their people management abilities, organisations can boost employee satisfaction, improve performance, reduce legal risks, and strengthen company culture.
• Enhancing accountability among line managers requires comprehensive training to help them confidently handle workplace issues. Many managers lack formal people management training, so effective programmes are necessary to improve managerial capability in areas like performance reviews, probation, and sickness absence.
• Investing in scenario-based training equips managers to navigate complex employee relations effectively, leading to cost savings and increased efficiency.

Download our whitepaper, ‘Employee relations 2.0: Manager empowerment – From accidental to accomplished’, to learn more about how you can prepare your managers for these challenges and create a stronger, more effective leadership team.

Proactive workforce planning and enhanced employee relations processes

The removal of service requirements for dismissal, sick pay, and family leave requires a comprehensive re-evaluation of workforce management strategies.

• Employers who integrate data analytics in HR gain valuable insights into workplace issues, enabling them to proactively improve employee engagement and experiences.
• As the Labour government seeks to expand workers’ rights, improving communication with employees is essential. Implementing a user-friendly self-service case management system like empower® will enable managers to handle people matters confidently and effectively.
• With templates and alerts for performance reviews, the management of sickness absence, probationary reviews, grievances, and disciplinary processes, plus much more, managers quickly become capable people leaders.

Encouraging regular discussions between managers and employees will create a collaborative environment and help mitigate issues before they escalate. By combining proactive workforce planning with enhanced employee relations processes, businesses can better navigate the evolving landscape of employee rights while maintaining a positive working environment.

Book a demo here to find out more about how empower® can help.

Start preparing for employment law reform now

Businesses must proactively prepare to avoid being caught off guard when these reforms take effect. If you missed the Empowering People Group webinar ‘New era for workers: What you need to know about the Employment Rights Bill’, you can catch up on demand here.

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