Here, we consider two of its proposed provisions on unfair dismissal and statutory sick pay (SSP), which fundamentally reshape the employment relationship, while strengthening worker protections.
Unfair dismissal – protection arrives earlier
Currently, employees must complete two years’ continuous service with their employer before gaining the right to claim unfair dismissal, should their employment be terminated. From 1 January 2027, that qualifying period will be reduced to six months, meaning a 75% reduction in the time required to acquire statutory protection.
This change is significant in a labour market where millions of workers change jobs each year and many leave employment within their first 12 months. Employers will therefore need to consider adopting earlier performance management procedures, alongside clear documentation, far earlier than may be currently implemented.
Statutory Sick Pay (SSP) overhaul – cover from Day One
Currently, SSP is only payable from the fourth day of sickness absence and is restricted to employees earning above the Lower Earnings Limit (£125 per week), excluding around one million low-paid individuals.
Under the new framework, SSP will be payable from Day One and the above-mentioned earnings threshold will be abolished. The DWP estimates that these changes are expected to increase the annual cost of SSP by around £420 million to approximately £1.07 billion.
The wider impact
Employers cannot ignore that risks now arise sooner, and the need for proactive management from Day One. For individuals, the Act delivers stronger protections, fair treatment, and increased financial security, ensuring additional support throughout employment.
If you wish to discuss this further, please do not hesitate to contact Molly Mackay by email: mxm@cooperburnett.com or tel: 01892 515022
This blog is not intended as legal advice that can be relied upon and CooperBurnett LLP does not accept any responsibility for the accuracy of its contents.
Originally published in the Tunbridge Wells Business Magazine: www.twbusinessmagazine.com
