New research by workplace expert Acas shows that changes to sick pay, paternity leave and unfair dismissal will pose the greatest challenges for businesses under new rules.
A recent YouGov survey, commissioned by Acas, asked employers which changes in the Employment Rights Act will be the hardest to adopt for their organisation.
Nearly 1 in 3 employers (30%) say that paying statutory sick pay from the first day of illness would be the most difficult change to adopt from the Employment Rights Act 2025.
More than one quarter (27%) said it would be the right to take paternity leave from the first day of employment.
Baroness Maggie Jones, Acas Chair:
“The reforms in the Employment Rights Act are the biggest shake-up to employment law in a generation, and it is vital that employers get up to speed quickly.
“The new day one rights on sick pay and paternity are already in effect and new protections against unfair dismissals are set to come in next year.
“Acas has updated its advice on probations to reflect the new changes on unfair dismissals, which is a significant change in the law. Businesses that get on top of all the changes early can prevent costly disputes from happening.”
From 1st January 2027, protection from unfair dismissal will become a right after 6 months of being in a job. Currently, someone must have worked for their employer for 2 years before claiming unfair dismissal. The limit on the amount of compensation for unfair dismissal will also be removed.
Probation!
A probation period is a time at the start of employment to check if someone is suitable for a job. There is no legal right to have a probation period, but some employers may be thinking about reducing the period to less than 6 months before the law changes on 1st January 2027. ACAS point out that this does not avoid legal risks. Employees still have protections during their probation such as:
- discrimination
- whistleblowing
- breach of contract
Probation periods should also be tailored to the job.
Probations of 6 months or less might not be appropriate for all roles. For example, technical or specialist roles might need longer for training and assessments.
Dismissing an employee during probation should be a last resort. Employers should consider other steps such as:
- extending a probation period
- using performance management to help someone improve
Find out more information from ACAS about:
PAYadvice.UK 6/8/2026