Under the Employment Rights Act 2025, significant changes will be made to the law on unfair dismissal from the 1st of January 2027.

As it stands currently, employees do not gain the right to claim ordinary unfair dismissal until they have completed two years of continuous service. This gives employers two years and significant flexibility in managing probation reviews and dismissals without the risk of an unfair dismissal claim. However, this will change in January 2027.

From the 1st of January 2027, the qualifying period for employees to claim ordinary unfair dismissal will reduce from two years to six months. This reduction will apply retrospectively, meaning any employee with six months of continuous service as of the 1st January 2027 will gain unfair dismissal rights, so anyone employed on or before the 1st of July 2026 will be protected from the 1st of January 2027.

Employers must think about how to manage probation periods and new hires due to the reduced timescales. We are recommending a shorter probation period of 3 months with the ability to extend for up to a further 2 months, ensuring that there is then time to enact a dismissal, if necessary, before the 6-month “deadline”.

If terminations are not enacted within this 6-month window, a full and fair procedure has to be followed to meet the fair and reasonable requirements of the Employment Rights Act 1996. For example, in the context of a conduct dismissal, this would involve a series of disciplinary warnings given over time, in accordance with your disciplinary procedure.

The Employment Rights Act 2025 also extends the time limit for bringing an unfair dismissal tribunal claim from three months to six months, effective from October 2026, giving employees more time to bring claims.

The risk of an unfair dismissal claim is further increased by the removal of the compensation cap for unfair dismissal claims, effective from the 1st of January 2027. The cap is currently the lower of a year’s pay or £123,543. By removing this cap, the potential award in unfair dismissal claims is unlimited, which could be costly for employers of high earners.

Alongside the extension of tribunal time limits, the Government has also amended the Acas Early Conciliation regime. Under the Employment Tribunals (Early Conciliation: Exemptions and Rules of Procedure) (Amendment) Regulations 2025, where a prospective claimant presents an Early Conciliation notification to Acas the conciliation period may now last for up to 12 weeks (previously six).

The Department for Business and Trade will produce guidance for employers to help them understand the likely practical implications of the changes in due course.

If you are unsure whether you have valid consent before responding to a reference request, contact Solutions for HR today.

What do employers need to know about data protection rules and references?

Providing a reference involves the disclosure and processing of personal data under the UK General Data Protection Regulation (UK GDPR).

So what do employers need to be aware of when responding to a reference request?

Employers must identify a lawful basis for all data processing activities. When providing a reference, this lawful basis is that the data subject (the individual asking for a reference) has given their consent.

For consent to be valid under data protection principles, it must be unambiguous and freely given.

So how does an employer ensure that they have this consent?

1. Record consent at an exit interview
2. Require the prospective employer to obtain written consent

Employers should keep a copy of the evidence of consent to be able to demonstrate their lawful basis for processing.

If you are uncertain whether you have consent, you should always contact the individual to check this and, ideally, obtain the consent in writing.

It is worth noting that GDPR provisions expressly exempt references from data subject access requests (DSARs), meaning that references do not have to be disclosed under a DSAR.

However, care should always be taken if providing anything other than a “basic” reference, containing dates of employment and job role. Employers have a duty of care to ensure that references are truthful and fair and do not mislead the reference receiver. Failing to do so could lead to a civil claim against the reference giver.

If you are unsure whether you have valid consent before responding to a reference request, contact Solutions for HR today.

A new requirement for employers

There is a huge increase in the number of data subject access requests (DSARs) that we are seeing.

Employees are more aware of their rights, and they are being used in workplace disputes as a mechanism to obtain as much information as possible to feed into a grievance or tribunal claim.

From the 19th of June 2026, however, there is a key legal change which employers must be aware of.

New provisions under the Data (Use and Access) Act 2025 now require employers to have a formal data protection complaints procedure in place to allow employees to raise a complaint directly with their employer about how their personal data has been handled, including how a DSAR has been dealt with.

Where a complaint is received, employers must:

• Acknowledge complaints within 30 days of receipt
• Carry out a reasonable investigation into the complaint
• Take appropriate steps to respond without undue delay
• Inform the complainant of the outcome without undue delay
• Keep records of complaints and outcomes

Importantly, this does not replace complaints to the Information Commissioner’s Office (ICO); if employees are not satisfied with their employer’s response, they can still escalate the issue to the ICO.

Employers must now:

1. Put a data protection complaints procedure in place setting out how employees can raise concerns and how those concerns will be handled.
2. Update privacy notices to signpost employees to the internal complaints procedure.
3. Train anyone responsible for handling DSARs to ensure they can identify a data protection complaint.

We have prepared a data protection complaints procedure and updated privacy notice that can be adapted for your business.

If you’re not sure your complaints procedure meets the new requirement, contact Solutions for HR today.

The case of Gharabli v Cedar Hope Care Services Ltd has ruled that paying a higher salary to sponsored workers, compared to domestic workers who are working in the same role, amounted to indirect race discrimination.

Gharabli was a Support Worker at Cedar Hope Care Services Ltd who had been promoted to a Senior Support Worker in May 2023, with an increase in her hourly pay, and a further increase scheduled, subject to completing her probation.

However, Gharabli became aware that Support Workers who were sponsored under the Skilled Worker visa were being paid a higher hourly rate of pay than their domestic counterparts.

After voicing her concerns in August 2023, Gharabli’s pay was increased, but this did not happen for the domestic Support Workers.

When Gharabli later requested a return to her previous role of Support Worker, due to personal reasons, her pay was reduced back down to the domestic Support Worker rate, which was lower than the sponsored rate.

Gharabli argued that domestic and sponsored staff were carrying out the same role and, as such, should receive the same rate of pay. However, the employer defended their actions, claiming that they were adhering to the minimum pay requirements of the Home Office and that sponsored workers had additional responsibilities.

The Tribunal, however, found that both groups of Support Workers were performing the same role. There was no evidence as to why the pay disparity was necessary, and the employer was unable to justify why domestic workers couldn’t have received pay that was equal to their sponsored colleagues.

As a result, Gharabli’s claim of indirect race discrimination was upheld, and she was awarded over £14,000, with £10,000 for injury to feelings, £2,237 for financial losses and an additional £1,938 for interest.

This is an important outcome for employers who employ sponsored workers. While pay for sponsored workers may be dictated by Home Office requirements, this is not a sufficient justification for offering different terms compared to domestic workers.

If this case raises questions about your pay structure or sponsored workers, contact Solutions for HR today.

Over the next few weeks, there are several international sporting events taking place. It is worth employers thinking about how they can manage the excitement while ensuring productivity doesn’t take a hit.

Both the FIFA World Cup and ICC Women’s T20 World Cup began in the second week of June, and the Wimbledon Championships will follow at the end of the month, with proceedings for all three coming to an end by mid-July.

In addition, the time zones for the FIFA World Cup mean that matches are scheduled for late into the night, with some starting at three in the morning.

There are plenty of ways that employers could get involved and bring excitement into the workplace, such as having themed events, lunches, and games, giving live result notifications, and even creating a World Cup quiz.

However, this could have an impact on productivity levels, absenteeism and presenteeism, and not to mention the issue of sporting rivalries and potential conflict in the workplace!

If you have not already done so, introducing a policy for international sporting events can be beneficial for outlining clear expectations on what is and isn’t allowed, and will provide the necessary guidance for management.

This might include showing matches in communal areas and determining a fair way of who can watch games. Or, if viewing is not feasible, making this clear from the outset.

It is also important to emphasise the need for respectful behaviour to ensure that staff don’t get carried away in competitive “banter”, which can so easily evolve into bullying and harassing behaviour.

Employers might see a rise in overlapping holiday requests or requests for adjustments to break or working hours. Employers should therefore ensure they have a fair and consistent process for managing such requests, and that these are communicated.

While there are a lot of management challenges during these times, it can also be exciting for sports fans, and if managed successfully, it can help bring staff together.

If the upcoming sporting schedule raises questions about managing absence or workplace behaviour, contact Solutions for HR today.

The Government are launching a series of pilots aimed at tackling what is being described as the “broken” fit note system.

The four pilots will last a year and will be introduced to GP practices in various areas of England, covering up to 100,000 appointments, with the hope of identifying the most effective method of tackling the steep growth in fit notes being issued.

Commencing in July 2026, there will be four different models in operation:

• Birmingham and Solihull – GPs issue the first fit note, and all patients are referred to a new support service led by non-clinical staff (i.e. social prescribers and work and health coaches).
• Coventry and Warwickshire – GPs issue the first fit note, and patients can be referred to a support service of both clinical and non-clinical staff.
• Cornwall and Isles of Scilly – GPs refer patients directly to a non-clinical support service without issuing a fit note.
• Lancashire and South Cumbria – GPs refer patients to a support service of clinical and non-clinical staff without issuing a fit note.

The support service will provide work and health support, encourage three-way discussions between patients, employers and professionals, and look at reasonable adjustments to help patients to stay in work.

The results of the pilot will then help to build legislation and create a more efficient and sustainable system for both patients, employers and healthcare professionals.

If the fit note reforms raise questions about your absence management process, contact Solutions for HR today.

One of the biggest changes under the Employment Rights Act 2025 is the reduction in the qualifying period for protection against ordinary unfair dismissal.

With effect from 1st January 2027, the qualifying period for protection against ordinary unfair dismissal will reduce from two years to six months, along with the qualifying period for employees’ right to request a written reason for dismissal.

In addition, the current financial cap on compensatory awards for unfair dismissal will be removed.

These changes will have an impact on existing employees, as anyone with at least six months’ service as of 1st January 2027 will automatically gain protections against unfair dismissal.

As a result of these changes, employers must sufficiently assess an employee’s performance within the common six-month probation period and, if necessary, enact a termination before that crucial 6 month stage if things aren’t working out.

It is recommended that employers utilise a three-month probation, with probation extensions not exceeding two months.

For practical guidance on qualifying periods and what these changes mean for your business, contact Solutions for HR today.

As the legislation from the Employment Rights Act (ERA) 2025 continues to roll out, one area of focus is further measures to ensure that the correct process for collective consultations is carried out by employers.

One of these changes has already been introduced as of 6th April 2026, with the maximum protective award for an employee increasing from 90 to 180 days’ pay where the employer has failed to consult accordingly.

The collective consultation process requires that an employer carry out a strict consultation process prior to any dismissals taking place.

This applies to instances where there are at least 20 redundancies expected within an individual workplace within 90 days, with the minimum length of the consultation period depending on the specific number of employees involved:

• For 20 to 99 redundancies within 90 days, there must be a minimum 30-day consultation period
• For 100 or more redundancies within 90 days, this increases to a minimum of 45 days

Additional changes expected in 2027 will lower the threshold required for collective consultations further, and the total number of redundancies will no longer apply to an individual workplace, but the whole organisation.

However, the Government is still working out the type of threshold and threshold number, with consultations around this due to close on 21st May 2026.

With these changes, employers must follow the collective consultation process appropriately.

This includes reviewing current redundancy policies and procedures and adhering to collective and individual consultation processes.

And, if redundancies are a potential, commencing consultation at the early stages of the process is crucial.

For practical guidance on collective consultation and what these changes mean for your business, contact Solutions for HR today.

What ERA 2025 reforms are expected to have the biggest impact in the Workplace?

A recent survey launched by ACAS and YouGov asked businesses and staff which reforms from the Employment Rights Act (ERA) 2025 will have the biggest impact on the workplace.

1. Statutory Sick Pay (SSP)
The reform that was expected to have the biggest impact by both businesses (43%) and employees (36%) was the introduction of SSP from the first day of absence.

Previously, SSP was only eligible for employees after the fourth qualifying and continuous day of illness.

However, since the 6th of April 2026, SSP has become available from the first day of an employee’s absence.

2. The six-month qualifying period
Businesses (31%) and employees (30%) also agreed on what they expected would be the second-biggest reform impact: the protection from unfair dismissal changing to a six-month qualifying period.

With effect from January 2027, the two-year qualifying period will be reduced to six months, meaning employees can bring an unfair dismissal claim much sooner.

However, while this isn’t being introduced until 2027, it will apply to existing employees.

This means that an employee with at least six months’ service on the 1st January 2027 will gain protection from unfair dismissal automatically.

3. Paternity leave from day one and greater access to flexible working arrangements
The third reform expected to have the biggest impact on the workplace was split between business leaders and staff.

Businesses rated the introduction of paternity leave from day one of employment as the third-most significant reform in the ERA 2025 (28%), while employees scored greater access to flexible working arrangements as their third-biggest reform (28%).

For paternity leave, employees previously needed to have 26 weeks of continuous service before they were eligible.

However, with effect from the 6th April 2026, this has also become a day one right.

Additional measures are being introduced in 2027 around flexible working.

In particular, where an employer intends to reject a flexible working request, they must be able to link this to at least one of the eight acceptable business reasons and explain why they believe their refusal is reasonable.

If you have questions about how the ERA 2025 reforms may affect your business, contact us for support with policies, procedures, and employment law compliance.

The Fair Work Agency (FWA) was launched in April 2026 as part of the Employment Rights Act 2025 reforms.

It brings together existing bodies such as the HMRC, Employment Agency Standards Inspectorate, the Gangmasters, and the Labour Abuse Authority.

The FWA acts as a point of contact for workers to enforce their rights.

They can inspect workplaces and enter Company premises, require documentation and evidence from both Companies and individuals, and are able to hold interviews.

They can also enforce statutory payments, recover underpayments, provide legal advice, and bring tribunal claims on behalf of employees who do not wish to do so themselves. And, if a claim brought forward by the FWA is successful, they will also be able to recover the costs directly from the Company.

With this in mind, it is a simple reminder to ensure employment practices are watertight.

This includes maintaining comprehensive and accurate records, including a new requirement to keep records of leave entitlement (statutory and contractual) for up to six years and ensuring that all statutory payments are calculated correctly, such as national minimum wage, deductions are lawful and that staff are paid on time.

If you have questions about how the Fair Work Agency may affect your business, contact us for support with employment practices, recordkeeping, and compliance.