Many UK employers may still be unprepared for a series of significant employment law reforms due to begin in April, according to employment law specialists at Parfitt Cresswell, potentially leaving businesses exposed to an increased risk of employment tribunal claims.
The changes, introduced under the Employment Rights Act 2025, form part of one of the most significant overhauls of workplace protections in recent years and will be introduced in stages over the next two years.
Legal experts warn that the reforms will expand employees’ legal rights while increasing the obligations placed on employers, meaning businesses that have not yet reviewed their policies or employment documentation may find themselves facing greater legal risk and financial implications.
Among the first changes taking effect in April is a reform to Statutory Sick Pay (SSP), which will now be payable from the first day of sickness absence and will apply to all workers regardless of earnings. Rights to paternity leave and unpaid parental leave will also become available from the first day of employment.
Further measures expected later in 2026 and 2027 will significantly expand employees’ ability to bring workplace claims. These include extending the time limit for employment tribunal claims from three months to six months and reducing the qualifying period for unfair dismissal claims from two years of service to just six months. The compensatory award cap for unfair dismissal claims will also be removed, increasing the risk of higher value claims being brought against businesses.
Employment specialists say the combined effect of these changes are likely to lead to an increase in workplace disputes and tribunal claims.
Natasha Smith, employment law solicitor at Parfitt Cresswell, said: “These reforms represent one of the most significant shifts in employment law in recent years, yet many employers have not yet started preparing for the scale of the changes that are about to arrive.
“With some of the reforms coming into force within weeks, businesses that have not reviewed their policies, procedures or employment documentation may find themselves under considerable pressure to protect themselves quickly.”
“Changes such as extending tribunal time limits and expanding unfair dismissal protections will make it easier for employees to bring legal claims. Employers who are not prepared could find themselves facing costly disputes that might otherwise have been avoided.”
Parfitt Cresswell says there are several key areas employers should review now to reduce the risk of disputes arising as the new rules take effect.
Five employment law changes employers should prepare for now
- Statutory Sick Pay from day one
Statutory Sick Pay will become payable from the first day of sickness absence and will apply to all employees regardless of earnings thresholds. Employers may need to update sickness policies and payroll systems to reflect the change.
- Day-one parental leave rights
Paternity leave and unpaid parental leave will become available from the first day of employment, removing the qualifying periods that previously applied.
- Greater risk of employment tribunal claims
The time limit for employment tribunal claims will be extended from three months to six months, giving employees longer to bring claims and potentially increasing the number of claims employers face.
- Expanded protection from harassment
Employers will face stronger obligations to prevent sexual harassment in the workplace, in addition to having a new responsibility to protect staff from harassment by third parties such as clients, customers or suppliers.
- Wider unfair dismissal protections
The qualifying period for unfair dismissal claims will be reduced from two years to six months, significantly expanding the number of employees able to bring claims.
Natasha Smith added:
“Employment law has always evolved, but the scale and pace of these reforms means employers should be reviewing their employment contracts, policies and management training now.
“Taking steps early can help businesses reduce the risk of disputes occurring and ensure they are prepared to face any potential issues as the new rules come into force.”
Parfitt Creswell has offices across the South-east and also trades as Charles Coleman & Co., Colemans, Copley Clark, Jevons, Riley and Pope, Keene Marsland, and Max Barford & Co.
