At CMR, we cut through noise, hype and HR‑scare stories to give leaders clear, practical guidance rooted in good people management. Two upcoming legislative changes are generating unnecessary concern – so let’s break them down, de‑sensationalise the headlines, and focus on what really matters!

1. Reduction of the Unfair Dismissal Qualifying Period

The government’s Plan to Make Work Pay (MWP) aims to modernise employment rights and extend protections already offered by employers. These reforms, delivered through the Employment Rights Act 2025, will roll out in phases to give organisations time to prepare.

One of the most talked‑about changes is coming in January 2027:

The unfair dismissal qualifying period will reduce from 2 years to 6 months.

This applies to dismissals from 1 January 2027, meaning:

Anyone employed from 1 July 2026 onwards will gain unfair dismissal protection after 6 months of employment.

And here’s the part many employers are missing:

It’s not just about probation.

If your probationary period is 3 months and the employee passes, but concerns arise shortly after, any dismissal within the first 6 months still falls inside the protected period.

This isn’t a reason to panic – it’s a reminder to tighten the basics.

What should employers do?

• Be fair. Strong induction, clear expectations and measurable objectives give every employee the best chance to succeed – and protect your organisation.
• Be organised. Most dismissal challenges stem from poor documentation or inconsistent management. Ensure probation, performance and conduct processes are followed every time.
• Be clear. Set expectations from day one: performance will be monitored closely throughout the first 6 months, regardless of probation length.
• Be proactive. Evaluate suitability consistently. If concerns persist, act before statutory rights apply – and ensure decisions are evidence‑based and procedurally sound.

2. Statutory Sick Pay from Day One

From 6 April 2026, the government has abolished the three‑day waiting period for Statutory Sick Pay (SSP). Under the Employment Rights Act reforms, SSP will begin on day one of sickness absence.

At first glance, this feels like another burden for employers – but the reality is more balanced.

If someone takes sick leave, one of two things is true:

• They are genuinely unwell, or
• They are willing to forgo part of their salary during a sustained cost‑of‑living crisis – which suggests something deeper is going on.

Either way, the employer’s responsibility remains the same.

What should employers do?

• Be supportive. You have a legal duty of care under the Health and Safety at Work etc. Act 1974 to protect employee wellbeing. Approach sickness with empathy and clarity.
• Follow process. Complete return‑to‑work documentation, record patterns, and initiate performance or wellbeing conversations where appropriate.

If sickness feels suspicious – whether employment exceeds 6 months or not (circle back to point 1!) – a clear, compliant paper trail is essential.

Don’t panic. This change is far less dramatic than the headlines suggest. Good leadership, consistent processes and fair treatment remain your strongest protection. Remember, this only means paying an additional three days of Statutory Sick Pay, not three days of salary. In reality, the impact is much smaller than the headline might suggest.

The Bigger Picture: Leadership Matters More Than Legislation

Both updates have caused anxiety among small businesses already navigating shifting employee expectations. But in truth, these reforms simply reinforce what high‑performing organisations already know:

Strong leadership, clear expectations and consistent performance culture are your best defence – and your biggest advantage.

If you’d like an informal conversation about preparing for these changes – or strengthening your processes, documentation and leadership capability – we’d love to support you.