New research by workplace expert Acas shows that changes to sick pay, paternity leave and unfair dismissal will pose the greatest challenge for businesses under new rules.
The YouGov survey, commissioned by Acas, asked bosses which changes in the Employment Rights Act 2025 will be the hardest to adopt for their organisation.
Nearly one-in-three (30%) of employers said that paying statutory sick pay from the first day of illness would be the hardest, while more than one-quarter (27%) said it would be the right to take paternity leave from the first day of employment.
New unfair dismissal protections, reducing the qualifying period from two years to six months, were also ranked among the top concerns (23%).
The insights gained from the results will help Acas target its support for employers where they need it the most and Acas has already updated its advice on probation periods to reflect the new law changes on unfair dismissals, it said.
Baroness Maggie Jones, Acas Chair, said:
“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 1 January 2027, protection from unfair dismissal will become a right after six months of being in a job. Currently, someone must have worked for their employer for two years before claiming unfair dismissal.
The limit on the amount of compensation for unfair dismissal will also be removed.
Acas has published new advice on probation periods. 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 six months before the law changes from 1 January 2027. However, this does not avoid legal risks and employees still have protections during their probation such as from discrimination, whistleblowing and breach of contract.
Probation periods should also be tailored to the job. Probations of six 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 or using performance management to help a staff member improve.
