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Employment law for employers: contracts, dismissal and 2026 changes

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Published:
October 1, 2026
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Employment law for UK employers: written statements, disciplinary and dismissal, redundancy, SSP changes and what the Employment Rights Act 2025 means for you.
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October 1, 2026
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Short answer

Employers must give every employee and worker a written statement of core terms on day one, follow a fair procedure in line with the Acas Code before disciplining or dismissing, and consult before redundancies. Under the phased Employment Rights Act 2025, day-one sick pay applies now, and unfair dismissal rights start after six months' service from 1 January 2027.

What must an employment contract or written statement include?

Every employee and worker is entitled to a written statement of employment particulars from their first day. Under section 1 of the Employment Rights Act 1996 and GOV.UK guidance, the principal statement, given on day one, must cover:

  • employer and employee names, start date and job title or description
  • pay, how often it is paid, and hours and days of work
  • holiday entitlement (at least 5.6 weeks a year for full-time staff) and sick pay
  • place of work, length of the job if temporary, notice periods and any probation period
  • benefits, and training the employer requires

A wider statement covering pensions, collective agreements and other training must follow within two months. Disciplinary and grievance rules can sit in a staff handbook, as long as the written statement tells staff where to find them.

Can you use zero hours contracts?

Yes. A zero hours contract is lawful, but exclusivity clauses that stop a zero hours worker working for someone else are unenforceable. Zero hours workers are still entitled to the National Minimum Wage (£12.71 an hour for workers aged 21 and over from April 2026), paid holiday and a written statement.

The Employment Rights Act 2025 will add a right to be offered guaranteed hours based on hours regularly worked, reasonable notice of shifts, and payment for shifts cancelled or cut at short notice. The government expects these to start in 2027, after consultation. They are not yet in force.

How do you dismiss an employee fairly?

A dismissal is fair only if you have a potentially fair reason (conduct, capability, redundancy, a legal bar, or some other substantial reason) and you follow a fair procedure. The Acas Code of Practice on disciplinary and grievance procedures sets the minimum standard:

  1. Investigate the facts without unreasonable delay.
  2. Tell the employee in writing what the reason is, including if there are any allegations

and share the evidence.

  1. Hold a meeting and let them respond. They have a legal right to be accompanied by a colleague or trade union representative.
  2. Decide, and confirm the outcome in writing.
  3. Offer a right of appeal.

If you unreasonably fail to follow the Code, a tribunal can increase compensation by up to 25%. Acas is consulting on an updated Code, so check for changes. Gross misconduct, such as theft, violence or serious negligence, can justify dismissal without notice, but only after the same fair process.

Can you dismiss an employee during probation?

Until 31 December 2026, employees generally need two years' continuous service to claim ordinary unfair dismissal, so dismissing during a probation period carries less risk. That is changing. From 1 January 2027 the qualifying period falls to six months, and the new rules apply to any dismissal where the employment ends on or after that date, even if notice was given earlier.

Some claims need no qualifying service at all, including discrimination and dismissal for whistleblowing, pregnancy, or asserting a statutory right. You must also give the notice in the contract, or at least the statutory minimum of one week once someone has worked for a month.

What is the redundancy process for employers?

Redundancy is a fair reason for dismissal only where the need for work of a particular kind has reduced or ended, and you act fairly. A fair process means:

  • consider ways to avoid redundancies, such as redeployment
  • use fair, objective selection criteria
  • consult individually with each affected employee
  • offer suitable alternative roles, with a four-week trial period
  • give notice and pay statutory redundancy pay

If you propose 20 or more redundancies at one establishment within 90 days, collective consultation must start at least 30 days before the first dismissal (45 days for 100 or more), and you must notify the Redundancy Payments Service on form HR1. Since 6 April 2026 the maximum protective award for failing to consult has doubled from 90 to 180 days' pay per employee.

Statutory redundancy pay applies after two years' service. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum payment is £22,530.

What does the Employment Rights Act 2025 mean for employers?

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being brought in stage by stage. Based on the government's implementation timeline (updated 25 September 2026):

Already in force:

  • Statutory Sick Pay from the first day of sickness, with no waiting days and no lower earnings limit (from 6 April 2026). SSP is £123.25 a week or 80% of average weekly earnings, whichever is lower.
  • Paternity leave and unpaid parental leave as day-one rights (April 2026).
  • Doubled protective award for collective redundancy failures, and a duty to keep holiday records for six years (April 2026).
  • The Fair Work Agency, which enforces pay and holiday rights, set up on 7 April 2026.

Coming next:

  • 1 October 2026: most employment tribunal time limits extend from three to six months.
  • 30 October 2026: employers must take all reasonable steps to prevent sexual harassment, including by customers and other third parties, and trade union access rights expand.
  • 1 January 2027: six-month qualifying period for unfair dismissal, removal of the cap on the compensatory award (currently £123,543 or 52 weeks' pay, whichever is lower), and new protection against fire and rehire.
  • 2027, dates to be confirmed: zero hours guaranteed hours, stronger flexible working rights, bereavement leave including pregnancy loss, and stronger protection for pregnant employees and new mothers.

What are the key deadlines and time limits?

These are the main time limits employers need to plan around:

  • Day one: give the principal written statement. The wider statement follows within two months.
  • Tribunal claims: three months less one day for most claims where the act complained of was before 1 October 2026; six months where it is on or after 1 October 2026. Claimants must first notify Acas for early conciliation.
  • Collective redundancy: consultation and HR1 notice at least 30 days before the first dismissal for 20 to 99 redundancies, 45 days for 100 or more.
  • Redundancy pay claims: employees have six months from the end of employment to claim.
  • 1 January 2027: unfair dismissal qualifying period drops from two years to six months.

What should you do next?

  1. Check every employee and worker has a written statement that meets the day-one requirements, and update your staff handbook.
  2. Review your disciplinary and grievance procedures against the Acas Code and train managers to follow them.
  3. Update payroll for day-one SSP and check you pay at least the current minimum wage rates.
  4. Before 1 January 2027, review probation periods and recruitment checks, as staff will gain unfair dismissal rights after six months.
  5. Ask Libra about a specific disciplinary, dismissal or redundancy situation before you act.
  6. For contested dismissals or collective redundancies, find a lawyer or clinic through Libra.

Frequently asked questions

Do I have to give a written contract to a zero hours worker?

Yes. Workers, including zero hours and casual workers, are entitled to a written statement of the main terms on or before their first day. It must include pay, hours, holiday entitlement and any probation period. Failing to provide one can add two to four weeks' pay to a successful tribunal claim.

Can I dismiss someone for gross misconduct without a hearing?

No. Gross misconduct allows dismissal without notice or pay in lieu, but you still need a fair process: investigate, tell the employee the allegations in writing, hold a meeting where they can be accompanied, and offer an appeal. Skipping these steps makes an unfair dismissal finding more likely.

How much statutory sick pay do I have to pay in 2026?

Since 6 April 2026, SSP is payable from the first day of sickness to eligible employees, with no lower earnings limit. The rate is £123.25 a week or 80% of the employee's average weekly earnings, whichever is lower, for up to 28 weeks. You can pay more under your own sick pay scheme.

When does the six-month unfair dismissal rule start?

The qualifying period for ordinary unfair dismissal falls from two years to six months on 1 January 2027. It applies where the effective date of termination is on or after that date, so an employee with six months' service who is under notice at the end of December 2026 may be covered.

Do I need to consult if I am only making one person redundant?

Collective consultation rules only apply to 20 or more proposed redundancies at one establishment within 90 days. But you must still consult the individual, apply fair selection and consider alternative roles. Without individual consultation, a redundancy dismissal of an employee with enough service is likely to be unfair.

What is the new sexual harassment duty?

Employers already have a duty to take reasonable steps to prevent sexual harassment of their staff. From 30 October 2026 this becomes a duty to take all reasonable steps, and extends to harassment by third parties such as customers and clients. Practical steps include a clear policy, training and a reporting route.

Can I change an employee's hours or contract without their agreement?

Not safely. A unilateral change is a breach of contract and can lead to claims, including constructive dismissal. Consult, explain the business reason and seek agreement, recording it in writing. Dismissing and re-engaging staff to force change is currently risky but new specific fire and rehire rules are planned for 1 January 2027, not yet in force.

Can I dismiss an employee who is on long-term sick leave?

Possibly, on capability grounds, but only after a fair process: get medical evidence, consult the employee, consider realistic adjustments and alternative work, and warn them of the risk. If the condition may be a disability, failing to make reasonable adjustments risks a discrimination claim, which has no qualifying service and no compensation cap.

Can I refuse a flexible working request?

Yes, but only for one of the eight statutory business reasons, such as additional cost or detrimental effect on quality or performance. Since April 2024 employees can ask from day one, twice a year, and you must consult and decide within two months. A tougher test for refusal is planned for 2027, dates to be confirmed.

How much notice must I give an employee I am dismissing?

The statutory minimum is one week for employees with one month to two years' service, then one week per complete year up to 12 weeks. Your contract may promise more, and the longer period applies. You can make a payment in lieu of notice only if the contract allows it or the employee agrees. Gross misconduct can justify summary dismissal.

Does an employee have the right to bring someone to a disciplinary hearing?

Yes. Workers have a statutory right to be accompanied by a colleague or trade union representative at a disciplinary or grievance hearing that could result in a formal warning or other action. If their companion cannot attend, you must postpone the hearing for up to five working days. Failing to allow this can lead to compensation of up to two weeks' pay.

What happens if a former employee makes a tribunal claim against me?

They must first notify Acas for early conciliation, which gives you a chance to settle. If they then issue a claim, the tribunal sends you the details and you usually have 28 days to submit your response (the ET3). Missing that deadline can result in judgment against you, so get advice and gather documents early.

Can I make someone redundant while they are pregnant or on maternity leave?

Redundancy is possible if the role genuinely disappears, but you must treat them fairly and offer any suitable alternative vacancy ahead of other staff. This priority applies during pregnancy and, since April 2024, for a period after a return from maternity leave. Selecting someone because of pregnancy is automatically unfair and discriminatory.

Ask Libra

  • Can I change an employee's contract without their agreement?
  • How do I dismiss an employee on long-term sick leave fairly?
  • Can I refuse a flexible working request?
  • Walk me through the redundancy process for a team of five
  • What changes under the Employment Rights Act 2025 for my small business?
  • What must I do before dismissing someone for misconduct?

Sources

This guide is general information about the law in England and Wales as at September 2026, not legal advice. For advice on your situation, ask Libra or find a lawyer through Libra.

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Short answer

Employers must give every employee and worker a written statement of core terms on day one, follow a fair procedure in line with the Acas Code before disciplining or dismissing, and consult before redundancies. Under the phased Employment Rights Act 2025, day-one sick pay applies now, and unfair dismissal rights start after six months' service from 1 January 2027.

What must an employment contract or written statement include?

Every employee and worker is entitled to a written statement of employment particulars from their first day. Under section 1 of the Employment Rights Act 1996 and GOV.UK guidance, the principal statement, given on day one, must cover:

  • employer and employee names, start date and job title or description
  • pay, how often it is paid, and hours and days of work
  • holiday entitlement (at least 5.6 weeks a year for full-time staff) and sick pay
  • place of work, length of the job if temporary, notice periods and any probation period
  • benefits, and training the employer requires

A wider statement covering pensions, collective agreements and other training must follow within two months. Disciplinary and grievance rules can sit in a staff handbook, as long as the written statement tells staff where to find them.

Can you use zero hours contracts?

Yes. A zero hours contract is lawful, but exclusivity clauses that stop a zero hours worker working for someone else are unenforceable. Zero hours workers are still entitled to the National Minimum Wage (£12.71 an hour for workers aged 21 and over from April 2026), paid holiday and a written statement.

The Employment Rights Act 2025 will add a right to be offered guaranteed hours based on hours regularly worked, reasonable notice of shifts, and payment for shifts cancelled or cut at short notice. The government expects these to start in 2027, after consultation. They are not yet in force.

How do you dismiss an employee fairly?

A dismissal is fair only if you have a potentially fair reason (conduct, capability, redundancy, a legal bar, or some other substantial reason) and you follow a fair procedure. The Acas Code of Practice on disciplinary and grievance procedures sets the minimum standard:

  1. Investigate the facts without unreasonable delay.
  2. Tell the employee in writing what the reason is, including if there are any allegations

and share the evidence.

  1. Hold a meeting and let them respond. They have a legal right to be accompanied by a colleague or trade union representative.
  2. Decide, and confirm the outcome in writing.
  3. Offer a right of appeal.

If you unreasonably fail to follow the Code, a tribunal can increase compensation by up to 25%. Acas is consulting on an updated Code, so check for changes. Gross misconduct, such as theft, violence or serious negligence, can justify dismissal without notice, but only after the same fair process.

Can you dismiss an employee during probation?

Until 31 December 2026, employees generally need two years' continuous service to claim ordinary unfair dismissal, so dismissing during a probation period carries less risk. That is changing. From 1 January 2027 the qualifying period falls to six months, and the new rules apply to any dismissal where the employment ends on or after that date, even if notice was given earlier.

Some claims need no qualifying service at all, including discrimination and dismissal for whistleblowing, pregnancy, or asserting a statutory right. You must also give the notice in the contract, or at least the statutory minimum of one week once someone has worked for a month.

What is the redundancy process for employers?

Redundancy is a fair reason for dismissal only where the need for work of a particular kind has reduced or ended, and you act fairly. A fair process means:

  • consider ways to avoid redundancies, such as redeployment
  • use fair, objective selection criteria
  • consult individually with each affected employee
  • offer suitable alternative roles, with a four-week trial period
  • give notice and pay statutory redundancy pay

If you propose 20 or more redundancies at one establishment within 90 days, collective consultation must start at least 30 days before the first dismissal (45 days for 100 or more), and you must notify the Redundancy Payments Service on form HR1. Since 6 April 2026 the maximum protective award for failing to consult has doubled from 90 to 180 days' pay per employee.

Statutory redundancy pay applies after two years' service. For redundancies on or after 6 April 2026, weekly pay is capped at £751 and the maximum payment is £22,530.

What does the Employment Rights Act 2025 mean for employers?

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being brought in stage by stage. Based on the government's implementation timeline (updated 25 September 2026):

Already in force:

  • Statutory Sick Pay from the first day of sickness, with no waiting days and no lower earnings limit (from 6 April 2026). SSP is £123.25 a week or 80% of average weekly earnings, whichever is lower.
  • Paternity leave and unpaid parental leave as day-one rights (April 2026).
  • Doubled protective award for collective redundancy failures, and a duty to keep holiday records for six years (April 2026).
  • The Fair Work Agency, which enforces pay and holiday rights, set up on 7 April 2026.

Coming next:

  • 1 October 2026: most employment tribunal time limits extend from three to six months.
  • 30 October 2026: employers must take all reasonable steps to prevent sexual harassment, including by customers and other third parties, and trade union access rights expand.
  • 1 January 2027: six-month qualifying period for unfair dismissal, removal of the cap on the compensatory award (currently £123,543 or 52 weeks' pay, whichever is lower), and new protection against fire and rehire.
  • 2027, dates to be confirmed: zero hours guaranteed hours, stronger flexible working rights, bereavement leave including pregnancy loss, and stronger protection for pregnant employees and new mothers.

What are the key deadlines and time limits?

These are the main time limits employers need to plan around:

  • Day one: give the principal written statement. The wider statement follows within two months.
  • Tribunal claims: three months less one day for most claims where the act complained of was before 1 October 2026; six months where it is on or after 1 October 2026. Claimants must first notify Acas for early conciliation.
  • Collective redundancy: consultation and HR1 notice at least 30 days before the first dismissal for 20 to 99 redundancies, 45 days for 100 or more.
  • Redundancy pay claims: employees have six months from the end of employment to claim.
  • 1 January 2027: unfair dismissal qualifying period drops from two years to six months.

What should you do next?

  1. Check every employee and worker has a written statement that meets the day-one requirements, and update your staff handbook.
  2. Review your disciplinary and grievance procedures against the Acas Code and train managers to follow them.
  3. Update payroll for day-one SSP and check you pay at least the current minimum wage rates.
  4. Before 1 January 2027, review probation periods and recruitment checks, as staff will gain unfair dismissal rights after six months.
  5. Ask Libra about a specific disciplinary, dismissal or redundancy situation before you act.
  6. For contested dismissals or collective redundancies, find a lawyer or clinic through Libra.

Frequently asked questions

Do I have to give a written contract to a zero hours worker?

Yes. Workers, including zero hours and casual workers, are entitled to a written statement of the main terms on or before their first day. It must include pay, hours, holiday entitlement and any probation period. Failing to provide one can add two to four weeks' pay to a successful tribunal claim.

Can I dismiss someone for gross misconduct without a hearing?

No. Gross misconduct allows dismissal without notice or pay in lieu, but you still need a fair process: investigate, tell the employee the allegations in writing, hold a meeting where they can be accompanied, and offer an appeal. Skipping these steps makes an unfair dismissal finding more likely.

How much statutory sick pay do I have to pay in 2026?

Since 6 April 2026, SSP is payable from the first day of sickness to eligible employees, with no lower earnings limit. The rate is £123.25 a week or 80% of the employee's average weekly earnings, whichever is lower, for up to 28 weeks. You can pay more under your own sick pay scheme.

When does the six-month unfair dismissal rule start?

The qualifying period for ordinary unfair dismissal falls from two years to six months on 1 January 2027. It applies where the effective date of termination is on or after that date, so an employee with six months' service who is under notice at the end of December 2026 may be covered.

Do I need to consult if I am only making one person redundant?

Collective consultation rules only apply to 20 or more proposed redundancies at one establishment within 90 days. But you must still consult the individual, apply fair selection and consider alternative roles. Without individual consultation, a redundancy dismissal of an employee with enough service is likely to be unfair.

What is the new sexual harassment duty?

Employers already have a duty to take reasonable steps to prevent sexual harassment of their staff. From 30 October 2026 this becomes a duty to take all reasonable steps, and extends to harassment by third parties such as customers and clients. Practical steps include a clear policy, training and a reporting route.

Can I change an employee's hours or contract without their agreement?

Not safely. A unilateral change is a breach of contract and can lead to claims, including constructive dismissal. Consult, explain the business reason and seek agreement, recording it in writing. Dismissing and re-engaging staff to force change is currently risky but new specific fire and rehire rules are planned for 1 January 2027, not yet in force.

Can I dismiss an employee who is on long-term sick leave?

Possibly, on capability grounds, but only after a fair process: get medical evidence, consult the employee, consider realistic adjustments and alternative work, and warn them of the risk. If the condition may be a disability, failing to make reasonable adjustments risks a discrimination claim, which has no qualifying service and no compensation cap.

Can I refuse a flexible working request?

Yes, but only for one of the eight statutory business reasons, such as additional cost or detrimental effect on quality or performance. Since April 2024 employees can ask from day one, twice a year, and you must consult and decide within two months. A tougher test for refusal is planned for 2027, dates to be confirmed.

How much notice must I give an employee I am dismissing?

The statutory minimum is one week for employees with one month to two years' service, then one week per complete year up to 12 weeks. Your contract may promise more, and the longer period applies. You can make a payment in lieu of notice only if the contract allows it or the employee agrees. Gross misconduct can justify summary dismissal.

Does an employee have the right to bring someone to a disciplinary hearing?

Yes. Workers have a statutory right to be accompanied by a colleague or trade union representative at a disciplinary or grievance hearing that could result in a formal warning or other action. If their companion cannot attend, you must postpone the hearing for up to five working days. Failing to allow this can lead to compensation of up to two weeks' pay.

What happens if a former employee makes a tribunal claim against me?

They must first notify Acas for early conciliation, which gives you a chance to settle. If they then issue a claim, the tribunal sends you the details and you usually have 28 days to submit your response (the ET3). Missing that deadline can result in judgment against you, so get advice and gather documents early.

Can I make someone redundant while they are pregnant or on maternity leave?

Redundancy is possible if the role genuinely disappears, but you must treat them fairly and offer any suitable alternative vacancy ahead of other staff. This priority applies during pregnancy and, since April 2024, for a period after a return from maternity leave. Selecting someone because of pregnancy is automatically unfair and discriminatory.

Ask Libra

  • Can I change an employee's contract without their agreement?
  • How do I dismiss an employee on long-term sick leave fairly?
  • Can I refuse a flexible working request?
  • Walk me through the redundancy process for a team of five
  • What changes under the Employment Rights Act 2025 for my small business?
  • What must I do before dismissing someone for misconduct?

Sources

This guide is general information about the law in England and Wales as at September 2026, not legal advice. For advice on your situation, ask Libra or find a lawyer through Libra.

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