This article has been borrowed from Debbie Glinnan at Parallel HR Ltd <debbie@parallelhr.co.uk> Her excellent August Newsletter.
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Employment Rights Bill
The Employment Rights Bill is currently making its way through Parliament and is expected to bring significant changes to employee rights once it becomes law. I often find myself saying, “we don’t yet know the full details”. That’s because, until the bill is passed (likely in Autumn 2025), much is still subject to change.
For example, the Government had proposed allowing employees to claim unfair dismissal from day one of employment. However, the House of Lords has rejected this, suggesting instead to reduce the qualifying period from two years to six months. That change may feel more manageable for employers, but we’ll need to wait and see what’s decided at the Bill’s final reading in the House of Commons.
In the meantime, here’s what we do know—the expected timetable for when these changes may take effect:
April 2026
- Statutory Sick Pay to be paid from day one of absence.
- No service required to take paternity leave or unpaid parental leave.
October 2026
- Time limit to bring a claim to tribunal extended from three to six months.
- Increased responsibilities regarding preventing sexual harassment.
2027
- Change to the length of service required to claim unfair dismissal.
- Further conditions to legally turn down a flexible working request.
- Right to guaranteed hours contract for zero hours workers.
- Introduction of statutory bereavement leave.
- Unlawful to dismiss during pregnancy, maternity leave or within six months of return (limited exceptions).
Settlement Agreements
You may have heard about the tribunal case of Sandie Pegg v NHS Fife, where an employee was dismissed for gross misconduct after objecting to a transgender woman using the female changing area. NHS Fife has already spent over £220,000 on its defence, and the case hasn’t concluded yet—meaning potential damages could still follow.
While most employers won’t face such high costs, tribunal expenses can still run into the tens of thousands, with each side usually covering their own legal fees. In some cases, a settlement agreement may offer a more practical solution.
A settlement agreement is a legally binding contract—typically involving a financial payment—where the employee agrees not to pursue legal claims. It’s often seen as an “amicable divorce” from employment, offering a clean break for both sides.
Used well, these agreements can avoid lengthy disputes and provide clarity. If this is something you’re considering, please contact me.
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