Noxia

Field note · Employment

Two employment changes already landed. The big one is January 2027.

The Employment Rights Act is discussed as though it were entirely ahead of us. Two of its measures took effect in April, quietly, and the one that changes how a small firm hires arrives on the first working day of 2027.

4 min read Sources checked 23 September 2026

The short answer

Two measures took effect on 6 April 2026: statutory sick pay is now paid from the first day of illness rather than the fourth, with the lower earnings threshold removed, and paternity and parental leave became day-one rights. On 1 January 2027 the unfair dismissal qualifying period falls from two years to six months, and dismissal-and-rehire becomes automatically unfair in most cases. Zero-hours and flexible working changes follow in 2027.

On this page · 7 sections

A ten-person firm has no HR department, and its employment practice is usually whatever it did last time. That is manageable when the rules change every few years. It is not manageable across a rolling programme, which is what this is.

Two things changed in April and a great many small employers have not adjusted for either.

The order it arrives inOn 6 April 2026 statutory sick pay became payable from the first day of illness with the earnings threshold removed, and paternity and parental leave became available from the first day of employment. On 1 January 2027 the unfair dismissal qualifying period falls from two years to six months and dismissal and rehire becomes automatically unfair in most cases. Zero-hours entitlements and flexible working changes follow during 2027.6 Apr 2026sick pay day onethreshold removed6 Apr 2026paternity day oneno waiting period1 Jan 2027unfair dismissaltwo years → six months1 Jan 2027fire and rehireautomatically unfair2027zero hours, flexibletiming to be setTHE ORDER IT ARRIVES INAcas. Several measures remain subject to consultation on how they will be implemented.The order it arrives inOn 6 April 2026 statutory sick pay became payable from the first day of illness with the earnings threshold removed, and paternity and parental leave became available from the first day of employment. On 1 January 2027 the unfair dismissal qualifying period falls from two years to six months and dismissal and rehire becomes automatically unfair in most cases. Zero-hours entitlements and flexible working changes follow during 2027.THE ORDER IT ARRIVES IN6 Apr 2026sick pay day onethreshold removed6 Apr 2026paternity day oneno waiting period1 Jan 2027unfair dismissaltwo years → six months1 Jan 2027fire and rehireautomatically unfair2027zero hours, flexibletiming to be setAcas. Several measures remain subject to consultationon how they will be implemented.
Two behind you, three ahead.Acas, Employment Rights Act 2025, read 23 September 2026.

Sick pay from day one is a payroll change and a behaviour change

Paying statutory sick pay from the first day of illness, with no earnings threshold, does two things. It costs more, which is obvious and usually small. And it removes the incentive a low-paid employee had to come in unwell, which is the point of it.

The operational trap is the record. Short absences that previously never reached payroll now do, which means the absence data your firm holds changed shape in April without anyone deciding it should. Any comparison across that boundary is comparing two different things.

Six months is the change that alters hiring

The qualifying period for unfair dismissal was two years. From 1 January 2027 it is six months. The government had been expected to make it a day-one right and settled on six months instead.

Two years is long enough that most small firms never had to think about it — a hire that was not working out was dealt with well inside the window. Six months is not. It is roughly the length of a probation period, which means the probation decision and the legal threshold now sit on top of each other.

At two years the law was something that happened to other firms. At six months it lands in the same month as the probation review.

The practical consequence is documentation, and it is the same shape as every other obligation on this site. A decision made at five months needs a record made at two, three and four — objectives set, feedback given, concerns raised in writing. None of that is difficult and all of it has to exist before you know you need it.

What is still unsettled

Acas is explicit that how several measures will be implemented is subject to government consultation. Zero-hours entitlements — guaranteed hours, compensation for cancelled shifts, reasonable notice of shifts and changes — are described without a firm date. The flexible working change, requiring employers to give business reasons for refusal and explain why the refusal is reasonable, is placed in 2027 without a day.

Treat any supplier quoting you a precise date for those as guessing. The two April changes and the two January 2027 changes are the ones with dates.

Three things worth doing this quarter

  1. Check your payroll actually implements day-one sick pay. It changed in April; a firm that has had no short-term sickness since may not have noticed a misconfiguration.
  2. Put the six-month date in the hiring process, not the handbook. A note in a policy nobody opens is not a control. A prompt at the three-month review is.
  3. Start writing performance conversations down. Not formally, not as warnings — a dated note of what was discussed. It is the cheapest evidence there is and it is worthless if backfilled.

What this does not tell you

This is not employment law advice and we are not employment lawyers. Which measures apply to a particular contract, and what a fair process looks like under the new threshold, are questions for one.

What we can say is that every item here turns into a record-keeping problem for a firm without an HR function, and that is a solvable problem. The same argument runs through the audit trail note, and the recruitment side of it is where the data work sits. If you want to know which of your processes is worth changing first, the triage tool will tell you most of them are not.

Questions people actually ask

What changed on 6 April 2026 under the Employment Rights Act?

Statutory sick pay became payable from the first day of illness rather than the fourth, and the lower earnings threshold was removed. Paternity and parental leave became available from the first day of employment, removing the previous waiting period.

When does the unfair dismissal qualifying period change?

On 1 January 2027 it falls from two years to six months. Protection had been expected to become a day-one right; the government changed this to a six-month qualifying period. Dismissal and rehire also becomes automatically unfair in most cases on the same date.

What is happening to zero-hours contracts?

Workers will gain entitlements to guaranteed hours, compensation for cancelled shifts, and reasonable notice of shifts and changes to shifts, during 2027. Acas notes that how this will be implemented is subject to government consultation, so no firm date is available.

What should a small employer do first?

Check payroll actually implements day-one sick pay, since it changed in April and a misconfiguration may not have surfaced yet. Then put the January 2027 date into the hiring process rather than the handbook, and start keeping dated notes of performance conversations — that evidence is cheap to make and worthless if created afterwards.

Sources

  1. Acas, “Employment Rights Act 2025”, read 23 September 2026. From 6 April 2026: “Statutory sick pay is paid from the first day of illness, instead of the fourth day”, with the earnings threshold eliminated; paternity and parental leave available “from the first day of employment”. From 1 January 2027: dismissal and rehire “automatically unfair dismissal in most cases”; the unfair dismissal qualifying period reduces from two years to six months — “protection from unfair dismissal was expected to become a right from the first day of employment. The government changed this to a 6-month qualifying period.” Zero-hours entitlements to guaranteed hours, compensation for cancelled shifts and “reasonable notice of shifts and changes to shifts” during 2027. Flexible working changes require employers to give business reasons for refusal and explain why refusal is reasonable. Acas records that implementation of several measures “is subject to government consultations”. acas.org.uk ↗ — primary for practical purposes; Acas is the statutory advisory body and this is its own summary. The legislation itself is the ultimate source re-checked every 6 months
  2. The observation that a six-month threshold collides with the probation review, and the three things to do, are ours. This note is not employment law advice. — our own argument, labelled as such

Checked 23 September 2026. Next scheduled check 22 March 2027. Numbers that move — leaderboards, live indices — are re-checked every 30 days; annual datasets and rules in force every six months; dated research once a year. If something here has gone stale before we got to it, tell us and we will correct it and say what changed.

Cite this note

Noxia, “Two employment changes already landed. The big one is January 2027”, Field notes, 23 September 2026; sources checked 23 September 2026. https://www.noxia.co.uk/field-notes/two-of-these-already-happened

A decision at five months needs a record made at two.

The January 2027 threshold turns hiring into a documentation problem for firms with no HR function. We build the prompts and the record — objectives set, feedback given, concerns raised, each with a date nobody typed in later — into whatever system you already use.

Talk to us about this