Unfair dismissal changes among biggest Employment Rights Act challenges for businesses, finds Acas survey

A survey of businesses commissioned by Acas has revealed upcoming changes to unfair dismissal rules, sick pay, and paternity leave as among employment law changes that will pose the greatest challenge for employers.

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%).

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.