Some big changes are coming to workers' rights from 2027.

The Employment Rights Act, which establish protections for employees in the UK, is implementing some key new rules from 1 January 2027.

Among the changes are revised unfair dismissal processes which are more favourable to the worker, as well as changes to statutory sick pay.

Here's a quick look at some of the main provisions.

Unfair dismissal

Some of the biggest revisions to the Employment Rights Act concern unfair dismissal.

For one, the length of time where an employee can claim unfair dismissal has reduced significantly from two years to six months.

This means, in effect, that a worker can be judged to have been unfairly dismissed at a much earlier point in their career with a given employer.

What's more, some dismissals can be ruled 'automatically unfair' - such as being fired for whistleblowing, pregnancy, or if the employee had health and safety concerns.

Further still, the compensation that an employee can win if they are judged to have been unfairly dismissed is now being 'uncapped'.

Currently, if a tribunal rules that a person was unfairly dismissed, they are entitled to a year's pay, or a maximum legal amount (£123,543) - whichever is lower.

However, this means that anybody earning more than £123,543 per year would receive less than their yearly salary in compensation.

From 2027, this ceiling is being completely removed, and courts can award compensation that reflects your total, actual financial losses.

Further still, the period to lodge a tribunal claim has been extended from three months to six months from the date of dismissal.

Sick pay

There are also big changes to sick pay.

From 2027, sick pay will be granted from the employee's very first day off - that is to say, the three-day wait period which has hitherto been in place will be removed.

Also, there will no longer be any earnings limit to qualify for sick pay - even part-time workers or those with low weekly earnings will qualify for statutory sick pay from 2027.

Those who do earn below the standard statutory flat rate will have sick pay set at 80 percent of average weekly earnings instead.

And, under the 2027 changes, sick pay will be more strictly policed; a new state enforcement body called the Fair Work Agency is being launched, and will have the power to inspect workplaces and issue heavy fines to employers who fail to pay proper holiday or sick pay.

Fire and rehire

The practice of firing an employee then rehiring them on lower wages is being stamped out under the new regulation.

Doing this will become an automatically unfair dismissal in almost all circumstances.

Employers can only do it if they can prove absolute, unavoidable bankruptcy is the alternative.

Bereavement leave

The rights to bereavement leave are also being extended.

This new legal right to time off will explicitly cover parents experiencing early miscarriages and pregnancy loss.

Making sense of the changes

There's certainly lots to pick through in the new Employment Rights Act changes - so what do the experts think?

Marlow Braide, a solicitor based in Edgeley, said: "The question of employment rights is always a balancing act between the rights of workers and the requirements of business to be able to operate as freely as possible, unburdened by regulations and red tape.

"The new changes certainly appear to represent a swing in favour of the employee however, in tricky times for the economy, time will tell whether the new measures go too far, or not far enough."

For more information about Marlow Braide, including filing claims or other employment rights issues, visit their website here.

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