Sick pay now starts on day one
This one's already in force. Since April 2026 the old three waiting days have gone, so statutory sick pay is due from the first day someone's off sick, not the fourth. The earnings threshold that used to shut out lower-paid staff has gone too, so a lot of part-time and lower-paid people who never qualified before now do.
In plain terms, more of your people get sick pay, and they get it sooner. The risk here isn't the law itself, it's your payroll and your habits. If your sick pay policy or payroll still assumes waiting days or an earnings cut-off, you can underpay someone without meaning to, and that's a legal problem and a trust problem at once.
Check your sick pay policy and payroll now reflect day-one sick pay, and be clear where any company sick pay sits on top.
Unfair dismissal protection from six months, not two years
This is the big one for owners, and it lands on 1 January 2027. Right now, someone usually needs two years' service before they can bring an ordinary unfair dismissal claim. That's dropping to six months. The government estimates it gives protection to around 6.3 million more people.
Here's the part almost nobody has clocked. The six months has to be served by 1 January 2027, not after it. So anyone who started with you on or before 1 July 2026 already has it. That date has been and gone. This isn't a deadline you're working towards, it's one that has largely passed already.
There's a second change on the same date, and for a lot of owners it's the bigger one. The cap on unfair dismissal compensation is being scrapped. Today an award is limited to the lower of 52 weeks' pay or roughly £118,000. From January there's no ceiling, and a tribunal awards what the person actually lost, the same way discrimination claims already work.
One thing to be clear about, because plenty of HR commentary still gets it wrong. There is no new statutory probationary period. It was proposed, then dropped from the final Act when the six-month qualifying period went in instead. So your own probation clause is the only protection you have, and it now has to do its job inside six months rather than two years.
None of this stops you managing your team. It means you've got far less time before the same fair-process rules apply, and far less room to fix a hiring mistake quietly. Get into good habits now, before the change makes you.
Check how long your probation period runs. If it's six months, you have no margin at all, because the moment it ends they already have the right to claim. Make the decision by month four or five, and write down why.
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Some rights already apply from day one
Worth clearing up a common myth. Even today, plenty of claims need no service at all. Discrimination, whistleblowing, pregnancy and maternity, and sacking someone for standing up for a legal right are all day-one issues, and discrimination awards have no cap at tribunal.
Flexible working is another day-one right. People can ask from their first day, can make two requests in any twelve months, and you have to give a proper answer within two months. You can still say no, but only for one of the set business reasons, and only after you've genuinely thought about it.
Never assume short service means no risk. Handle every exit and every request properly, whatever the length of service.
What this means for how you hire and manage
The thread running through all of it is simple. Process matters earlier now, and for more of your people, than it used to. The businesses that struggle will be the ones still running on gut feel and good intentions, hoping things sort themselves out. The ones that cope will have the basics in place: clear contracts, a proper probation process, honest conversations early, and a habit of writing things down.
None of that is heavy or expensive. It's mostly doing the ordinary things properly, and a bit sooner. Once the new rules bite, the cost of getting it wrong is a lot higher than the cost of getting the basics right.
What to do now
You don't need to act on everything at once. Start with the two changes that carry the most risk. Make sure day-one sick pay is set up right in your payroll, and start treating probation and the early months as a real decision point, not a formality.
Some of the detail is still being finalised, so treat the dates as where things stand today, not the last word. If you're not sure how any of it applies to you, or you've got a situation live right now, it's worth a proper look before you act.
Not sure where you stand with the changes, or dealing with an employee issue right now? Take the free Employee Situation Check.
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Frequently asked questions
When does statutory sick pay start from day one?
It already does. Since April 2026 the three waiting days have been removed, so statutory sick pay is due from the first qualifying day of sickness, and the lower earnings threshold has gone, so more part-time and lower-paid staff qualify.
When does the two-year unfair dismissal period change to six months?
The qualifying period for ordinary unfair dismissal is set to drop from two years to six months under the Employment Rights Act 2025, expected to take effect in 2027. The exact detail is still being finalised, so treat this as the current position.
Does short service mean I have no risk if I dismiss someone?
No. Some claims, including discrimination, whistleblowing and pregnancy-related dismissal, apply from day one regardless of service, and discrimination awards are uncapped. Always follow a fair process, whatever the length of service.
Key takeaways
- Sick pay is already payable from day one, so check your policy and payroll now.
- From 2027, unfair dismissal protection starts at six months' service, not two years.
- Many rights, including discrimination and flexible working, already apply from day one.
- Process now matters earlier and for more of your people, so get the basics in place.
- Unsure how the changes affect you? Take the free Employee Situation Check.
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