A raft of UK employment law changes is set to impact businesses following the Employment Rights Bill of October 2024. Some of the implications are huge, such as the removal of the two-year qualification period for unfair dismissal claims. Employees and workers will be able to claim unfair dismissal from the first day of their new role. This new legislation means massive changes for employers … or at least it should, if costly tribunal claims are to be avoided.

Do your current dismissal practices leave your organisation vulnerable to tribunals?

Now is the time to get ready.

Current Climate

Generally, UK employment law says employees must have a minimum of two years of continuous service before they can claim for unfair dismissal against their employer.

Even with less than two years’ service, an employee can make a claim if they believe their dismissal was unlawful or discriminatory. This can include dismissals related to:

• Pregnancy and maternity leave
• Whistleblowing activities
• Trade union activities
• Asserting statutory rights (such as asking for holiday pay)

This is all about to change. The two-year qualifying period is set to disappear. Are you ready?

The Government has made it clear that “reforms of unfair dismissal will take effect no sooner than autumn 2026.” This huge change is approaching fast!

‘Every employment contract termination needs to be supported by solid reasoning and flawless procedure,’ says Emma Clack of Heneom HR & Recruitment. ‘Within every job role is an actual person, a human being. It’s sad that a change in the law is needed before all employers treat this important process fairly and correctly.’

Implications for Employers

Employers, especially SMEs, now face a triple-threat scenario:

• Administrative scrambling to handle increased tribunal activity.
• Extended HR demand, with managers dedicating weeks per claim.
• Strategic hiring freeze as many businesses opt for lean staffing, short contracts or automation to buffer risk.

The change means the spotlight will focus on transparency and accountability. Proactive management must prevail with ironclad termination processes put in place. Shouldn’t this have happened already? Yes.

Employers should ensure all dismissals are based on fair and documented procedures, supported by legitimate business reasons.

The Human Element

As well as strengthening dismissal rights and processes, the imminent reforms champion equality and transparency. Surely this is a benefit for everyone involved? It highlights that people, not just jobs, are involved. By promoting fairness, workplace cultures are more resilient and employees are more motivated. The reforms offer great potential rather than problematic processes.

Tribunal Meltdown

By the end of 2024, the UK tribunal backlog had reached 49,800 cases, a 23% increase from 2023. The tribunal backlog means approximately 450,000 individuals, across single and multiple claims, are now waiting for their cases to be resolved. In major regions, full hearings are being listed as far out as 2026, with some complex cases scheduled for 2027. Total resolution is taking over 20 months to finalise. (Personnel Today, May 2025)

Tribunals are drowning—and it’s about to get worse. Employers with inadequate processes will be more vulnerable to claims.

What to Check – Crucial Components

• Tighten HR compliance: Review recruitment and termination policies, revamp probation frameworks and introduce in-depth training. Everyone must be aware of the organisation‘s legal obligations.
• Legal risk budgeting: Factor in potential claims and settlements.
• Pre-emptive documentation: Capture performance issues early, with timely witness statements.
• Early resolution focus: Use ACAS and conciliation aggressively; with 6-month windows, it matters more.

The Employment Rights Bill isn’t just reform—it’s a reset of risk and reward.

It’s essential that employers adjust to ensure employment policies are fair and compliant. The legislative changes will change the employment landscape for everyone involved – for employers and employees. Getting it right is essential, helping your organisation to:

• avoiding lengthy expensive legal battles,
• be an employer of choice and,
• improve employee retention.

Let’s Go!

If you need to change processes and – ultimately – workplace culture you need to be proactive. The new legal requirements are just around the corner. Start now.

Talk to Emma at Heneom HR. Let’s make sure your HR ducks are in a row, ready for the new legislation.