Page 61 - CFJ_Apr26

ADVICE & INFORMATION

Mark Stevens

The Employment Rights Act: A new era

The act introduces wide-ranging reforms, reshaping workplace protections, unfair dismissal
rules, and employee rights across UK businesses, says Mark

IVEN that the world of flooring is This means new hires commencing Where changes are genuinely needed,
Gvery much a people-based industry employment from July 2026 onwards will securing agreement will generally
– machines may make carpet but people have a six-month qualifying period. As be safer for employers than relying
are needed to fit them, employers and part of the compromise, the government on dismissal and reengagement.
employees alike will likely have shown tabled amendments to remove the Employers may want to review whether
keen interest in the government’s moves statutory cap on compensatory awards existing flexibility clauses or collective
to reform employment law via the for unfair dismissal. This will mean agreements already provide a practical
Employment Rights Bill. claimants will be able to claim potentially way to vary terms by agreement.
That bill is now an act having gained unlimited compensation for ordinary Checking contracts now can help
royal assent last December (2025). unfair dismissal claims. identify whether they offer sufficient
But as the bill was progressing Employers can prepare for these scope for needed changes or if updates
through parliament the government, changes by reviewing recruitment and would be beneficial.
last July (2025), published a policy paper, induction processes to ensure any job Though these provisions are expected
Implementing the Employment Rights withdrawals or early dismissals are well to take effect from 2026, they signal a
Bill: roadmap, setting out how and when documented with a clear and defensible clear shift in approach away from the
new workplace rights and protections will rationale. current legal position.
take effect. Zero hour and casual worker reforms
Certain provisions are expected to The act introduces greater protections for
come into force in 2026; other changes zero-hours and casual workers through
will be introduced in stages, with the final three core statutory rights:
measures rolling out by 2027. - a right to be offered guaranteed hours
The roadmap provides employers with once certain thresholds are met;
an opportunity to plan ahead, update - a right to reasonable notice of shifts;
policies, and review workplace practices and
before the changes become law. The - a right to compensation where shifts
act builds on long-standing discussions are cancelled, changed, or curtailed at
about updating UK employment law to short notice.
reflect modern working practices. The act aims to align contractual
Its changes are wide-ranging, from hours more closely with actual hours
changes to unfair dismissal protection For existing staff, updating probation worked. Once a worker regularly works
to new measures tackling workplace procedures and training managers on above a minimum threshold over a
harassment and zero-hour contracts. fair and consistent probation reviews will defined reference period (expected to be
Understanding what’s changing, when help align with the new rules. around 12 weeks), they must be offered
it will apply and how it might affect Limitations on ‘fire and rehire’ practices guaranteed hours reflecting that pattern.
employment practices will be essential in The act introduces stricter limits on the This offer must fairly match the pattern
the months and years ahead. use of so-called ‘fire and rehire’ practices. worked and cannot be for a fixed term.
The act introduces numerous reforms, The act provides it will be automatically Any less favourable terms must be
but four stand out as particularly unfair to dismiss an employee solely justified.
significant owing to the scale of their because they refuse to agree to changes Workers will also have the right to
impact and the work that may be needed to their contract terms, or to dismiss reasonable notice of shifts. If shifts
to prepare for them. someone in order to re-engage them on are cancelled or changed at short
Change to protection against unfair new terms for the same or similar work. notice, compensation will be payable.
dismissal There is a defence if the employer can Regulations will set out what counts
Currently, most employees need show that the changes were genuinely as ‘reasonable’ notice and ‘short
two years of continuous service to needed to prevent or significantly notice’, but advance planning and clear
be protected from unfair dismissal. reduce serious financial difficulties in communication will become increasingly
Government is no longer pursuing day- the near future and that no reasonable important.
one protection against unfair dismissal. alternatives were available. These rights will apply to agency
Instead, following agreement with However, the test will be applied workers as well, with responsibilities
business groups and trade unions, the narrowly as tribunals are expected to divided between the end hirer and the
current two-year qualifying period for look for clear and credible evidence, and agency.
ordinary unfair dismissal will be reduced general aims such as cost reduction or Employers will need to inform workers
to six months with effect from 1 January efficiency improvements are unlikely to of their rights within two weeks of
2027. be sufficient. starting work, or within two weeks of it 

www.contractflooringjournal.co.uk 61
@CFJMagazine CFJ April 2026