The proposed reforms by the Labour government are set to significantly reshape the employment law landscape. These changes are likely to take effect from late 2025 into 2026 and beyond. Employers who fail to prepare may face legal risk, reputational damage, and strained employee relations. Below are some of the headline changes and practical steps businesses should take to prepare.

Right to Claim Unfair Dismissal from Day One

Employees will have a right to challenge whether their dismissal was fair from day one of employment and the standard ‘2 year qualifying period’ will be removed. It is expected that employers will be able to follow a ‘light touch’ dismissal procedure during an ‘initial period’ of employment. This Initial period is expected to be 9 months. Details of the ‘light touch’ procedure is to be confirmed.

Practical Tips

• Review recruitment processes so that you are getting the right people in the right jobs from the start.
• Ensure onboarding processes and performance management systems are robust and evidence-based.
• Train line managers in capability-based performance, absence and dismissal procedures.

Read More