This month’s HR and employment law landscape has been dominated by the Employment Rights reforms, alongside several important legislative announcements that employers should already be preparing for.

From changes to statutory sick pay and family leave rights to consultations on NDAs, TUPE, and mandatory ethnicity pay reporting, HR teams are facing one of the most significant periods of workplace reform in recent years.

Statutory Sick Pay (SSP) Changes

One of the most significant operational changes for employers is the reform of Statutory Sick Pay.

The three day waiting period was removed in April, meaning eligible employees can receive SSP from the very first day of absence. In addition, the lower earnings limit has been abolished, extending eligibility to lower paid workers who previously fell outside the SSP framework.

Payroll and HR systems should already be updated to ensure compliance.

New Fit Note Pilots Launch Across England

Alongside SSP reform, the Government has also announced several pilot schemes aimed at overhauling the UK’s fit note system.

Currently, around 11 million fit notes are issued each year, with more than 90% declaring individuals ‘not fit for work’. The new pilots; launching through NHS WorkWell sites from July 2026, will test alternative approaches focused on keeping employees connected to work where appropriate.

Depending on the pilot area, employees may receive support from social prescribers, work and health coaches, and multidisciplinary support teams rather than relying solely on GP fit notes.

The initiative signals a clear policy shift towards earlier intervention, workplace adjustments, and collaborative health and employment support which also may provide employers with more information and allow them to manage employee absence more effectively.

Holiday Pay Record Keeping Requirements Tightened

Holiday pay compliance has become a growing area of risk. Employers are now legally required to retain detailed holiday pay and annual leave records for six years. Importantly, failure to maintain adequate records has been elevated to a criminal offence.

Businesses still relying on fragmented spreadsheets or inconsistent leave tracking systems should urgently review their processes.

King’s Speech Signals Further Workplace Reform

While this year’s King’s Speech did not introduce major new employment bills, it reinforced the Government’s longer term direction of travel.

Key themes included:

• Continued investment in apprenticeship pathways to tackle youth unemployment
• A proposed bill aimed at strengthening EU trade ties and reducing cross-border workforce friction
• New late payment legislation designed to protect smaller businesses and improve cash flow resilience

Consultations Employers Should Be Monitoring

Several major consultations are now underway and could lead to further substantial changes for employers.

• Non-Disclosure Agreements (NDAs)

The Government has launched a consultation on restricting confidentiality clauses in cases involving workplace harassment and discrimination. Under the proposals, NDAs in settlement agreements may only remain enforceable where confidentiality is specifically requested by the employee.

• National Minimum Wage 2027

The Government has formally issued its remit to the Low Pay Commission ahead of recommendations for the 2027 National Minimum Wage rates.

• TUPE Reform Review

A new call for evidence has also been launched on the future of TUPE regulations, with responses closing on the 1st of July 2026. This review may have significant implications for outsourcing, restructures, and business transfers.

Recruitment & Probation Processes Under Review Ahead of 2027

HR teams are also preparing for a major structural shift due to take effect on the 1st of January 2027. The qualifying period for unfair dismissal claims is set to reduce from 24 months to six months.

Importantly, the rule will apply to employees who reach six months’ service after the implementation date. This means employees hired from July 2026 onwards will gain enhanced unfair dismissal protections in early 2027 and any employees over 6 months continuous service but less than 24 months will automatically gain unfair dismissal rights from 1st of January 2027.

As a result, many employers are already reviewing their probation periods and how they manage early induction and onboarding of new employees.

Final Thoughts

The pace of employment law reform continues to accelerate, placing increasing pressure on HR teams to modernise policies, strengthen record-keeping, and prepare managers for a more heavily regulated employment environment.

Employers that take proactive steps now, particularly around absence management, probation processes, and workforce reporting will be best placed to manage risk and adapt successfully to the evolving legal landscape.

Want a chat about any of the above or how to best prepare your business for what’s to come? Get in touch at hello@empowr.uk.