KR HR & TRAINING NEWS ARTICLES
Live On Air: Talking Sick Pay, Family Leave And Unfair Dismissal
Our director Kathryn Fairlie joined presenter Paula Harsley on Radio Bath’s “Business Matters” programme on 20th January to discuss how employers can prepare for upcoming legal changes. During the show, Kathryn and Paula covered information on handling sickness absence, family leave changes and changes to unfair dismissal rights across three segments.
Statutory Sick Pay:
Sick pay is likely to cost businesses more from 6th April 2026, especially SMEs and charities that only pay the statutory minimum. The first key change is that the current three unpaid waiting days will be removed, which means employees will receive sick pay from day one of their absence. Potentially, this means that there is less of a deterrent when taking odd days off sick. The other change is that the lower earnings threshold will be removed, which means that the lowest paid workers will qualify for paid sick leave for the first time.
Whilst employers may groan at the thought of additional costs, on a more positive note, the changes protect the most vulnerable workers and also make it less likely that individuals may drag themselves into work when they are infectious, reducing the spread of germs around the team.
To prepare for these changes and to keep any potential extra costs under control, Kathryn advised employers to:
- Keep accurate records. You can’t budget correctly, or ensure you’re paying the correct sick leave amounts or manage absences proactively if you don’t keep data on when people take time off sick. This data needs storing securely – we’d recommend a system like Breathe.
- Hold return to work discussions consistently, regardless of absence length. This sets expectations that employees will need to account for their absence on their return, as well as fulfilling your duty of care as an employer. You need to be confident the individual is well enough to return, if they are on any medication that may affect their performance or their ability to carry out their role safely, and if their reason for absence is genuine. It’s also an opportunity to explore any patterns that may be arising, and refer for further support as needed. This could include employee counselling providers, occupational health or encouraging your employee to visit their GP.
- Update your sickness absence policy, employee handbook and contract clauses.
- Train your line managers so they are confident holding discussions about sickness, know what to say (or not say) and can support your team effectively.
Have a listen to the segment on sick pay below:
Family Leave Changes
Good news for working parents, as the qualifying period for some types of family leave will be removed from 6th April 2026.
- Statutory Paternity Leave will become a day one right. Currently, employees have to have 26 weeks’ service before they are legally entitled to take two weeks of paternity leave and have legal protection to return to their role. The criteria for Statutory Paternity Pay will remain at 26 weeks.
- Unpaid Parental Leave will become a day one right. Currently, employees need 1 year’s service before they can take unpaid parental leave. This is a right to take up to 18 weeks of leave per child (typically no more than 4 weeks in any year) until their child’s 18th birthday. It is often used to support things like settling into a new school, supporting a child’s wellbeing or managing childcare during school holidays.
- There will also be a new type of bereavement leave for parents where the birth mother or main adopter dies within a year of a child being born, in which case the balance of up to 52 weeks leave can be passed to the surviving parent. This legislation was introduced following campaigning by a bereaved father who found their was a loophole in this circumstance. Something that we hope we never need to implement, but it gives reassurance to know that it is there.
Key actions for employers include updating contracts, policies and handbooks to reflect revised legislation, and ensuring that line managers and HR teams understand the changes.
Employment Rights
Currently, an employee needs to have 2 years’ service to claim ordinary unfair dismissal. This is set to change from January 2027, when the qualifying period reduces from 2 years to 6 months. In addition, the statutory cap for unfair dismissal compensation will be removed, meaning potentially larger payouts for the highest earners.
Kathryn highlighted key elements for employers to consider include:
- Revising probation period length. Often, businesses use a 6-month probation period, but this doesn’t give scope for any extension, or risks tripping over the 6-month point if there are any absences which delay review meetings. Potentially, a 4-month probation period may be sensible going forward, as it gives some scope to extend and to complete relevant processes. This needs to be considered by July 2026, as new starters in July will hit the 6-month point when the shorter unfair dismissal qualifying period kicks in from January 2027.
- Tightening up your recruitment procedures to make better appointments. Have you clearly defined your requirements and do you have a robust selection process in place? What pre-screening checks do you carry out?
- Ensuring your probation and induction processes are up to scratch, incorporating regular check-ins and opportunities for feedback. Document any such conversations.
- Training your line managers so they are confident and competent in recruitment, induction and performance management processes.
In any case, the notion that it’s “safe” to dismiss an employee in their first two years of service at present is something of a misnomer. There are various automatically unfair reasons for dismissal from day one, so employers are advised to follow fair and defensible processes at any stage of the employment journey.
For support with either updating your processes and documentation, or upskilling your line managers, get in touch!
There are many more changes coming into force under the Employment Rights Act 2025. To keep up to date, sign up to our newsletter here.
Thank you to the Radio Bath team for inviting us to join the show!