"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."
"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."
Rights to guaranteed hours and payment for short-notice cancellations will require employers to plan staffing carefully and may reduce availability of casual work as employers limit exposure. The Employment Rights Bill reduces the unfair dismissal qualifying period to six months from January 2027 for employees engaged from July 2026 onwards. Employers must use robust recruitment and selection processes, actively manage new starters, address early problems rather than dismiss them as teething issues, and manage probationary periods effectively. Delays in action will trigger additional employment protections and processes. The number of unfair dismissal tribunal claims is likely to rise. The bill also removes the £118,223 cap on awards, which will mainly affect higher earners able to prove losses beyond salary, subject to mitigation obligations.
Read at London Business News | Londonlovesbusiness.com
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