Work organisation
The qualifying period for unfair dismissal is reduced from two years to six months for dismissals on or after 1 January 2027. Agency workers still need to have employee status to be able to claim unfair dismissal.
The global temporary (agency) workers comparative table has been expanded to include China as a new jurisdiction.
Following the Supreme Court decision in Augustine v Data Cars Ltd, this FAQ has been updated to remove a reference to McMenemy v Capita Business Services Ltd. The Court confirmed that McMenemy took the wrong approach to causation and less favourable treatment of part-time workers. The guidance remains the same: employers can avoid less favourable treatment by providing part-time workers with a pro rata entitlement to bank holidays.
The case of Komeng v National Highways illustrates that an employer may be able to justify treating a fixed-term employee differently from a comparable permanent employee where there is a genuine and proportionate business reason for doing so.
The reduction of the qualifying period for protection from unfair dismissal is one of the most significant workplace reforms contained in the Employment Rights Act 2025. In our recent webinar on the subject, attendees asked about the implications of the changes for the use of fixed-term contracts.
The Government published a consultation on how the new zero hours contract rights should work in practice, including how guaranteed hours, notice of shifts and how the measures should apply to agency workers. The consultation closes on 25 August 2026.
Umbrella company tax reforms have now come into force, introducing what recruiters and compliance specialists have described as the most significant shake-up to the temporary labour market since the private sector IR35 reforms were introduced in 2021.
The maximum guarantee payment has increased to £41, effective from 6 April 2026. HR teams should update payroll calculations and policy documentation to ensure compliance with the new maximum rate.
The cancellation of thousands of flights and the closure of airspace in the Middle East are having an impact on the workplace, particularly when employees are left stranded or their holiday plans are affected. How should employers tackle workplace issues arising from the flight disruptions caused by the US and Israel's war with Iran?
Updated to confirm that these measures are due to come into effect in 2027, according to the Government's updated timeline.
HR and legal information and guidance relating to work organisation.