The UK government is making a huge upgrade to workers’ rights with the introduction of Day One Rights as part of the new Employment Rights Bill.
This legislation aims to end unfair employment practices, strengthen worker protections, and modernise employment laws to reflect today’s workforce needs. Among the major changes, employees will now be entitled to key rights from their first day of employment rather than having to wait months or years.
For businesses, these changes mean hiring decisions carry even greater responsibility. With protections against unfair dismissal, statutory leave entitlements, and changes to sick pay coming into effect immediately, employers need to rethink how they attract, assess, and retain talent.
What Are Day One Rights?
Under the new bill, employees will have immediate access to:
Protection from unfair dismissal
Employees will no longer need two years of continuous service to claim unfair dismissal. However, a new statutory probation period is expected to allow for a fair assessment of suitability before full rights apply.
Paternity and parental leave
The requirement to work 26 weeks before taking paternity leave, or a year for unpaid parental leave, will be removed. Parents will have these rights from day one.
Statutory bereavement leave
Employees will now have the right to bereavement leave from the start of employment. The details on eligibility and duration are still being finalised.
Statutory sick pay (SSP) reforms
The three-day waiting period for SSP will be scrapped, and the lower earnings threshold will be removed. This means more workers will qualify for SSP, though exact payment structures are still under discussion.
These measures reflect a major shift in employment law, aiming to provide security, fairness, and stability for employees while balancing business needs.
How Will This Impact Hiring?
With Day One Rights in place, businesses need to ensure they are making the right hiring decisions upfront. Employees now have stronger protections from the very start, making it essential for employers to:
- Refine recruitment strategies – Ensuring the right fit is more critical than ever, as dismissing an unsuitable hire may require a fair and documented process, even during probation.
- Strengthen onboarding and training – New hires will be entitled to key benefits immediately, so businesses need to set them up for success quickly.
- Be mindful of the new statutory probation period – While businesses will still be able to assess an employee’s suitability, the details of what a “lighter-touch” dismissal process during this period entails are still being defined.
The Cost of a Bad Hire Just Got Higher
A poor hiring decision doesn’t just impact productivity, it can be financially costly. According to the Recruitment & Employment Confederation, a bad hire can cost a business up to three times the employee’s salary when considering:
💰 Recruitment costs
💰 Training and onboarding expenses
💰 Productivity losses
💰 The impact on team morale and engagement
With Day One Rights making early dismissals more complex, businesses need to take a data-driven approach to hiring to reduce risk.
How Businesses Can Hire Smarter
Relying on instinct alone when hiring isn’t enough. Even with the best intentions, unconscious bias can influence decisions, leading to missed opportunities or poor hires. A structured, data-driven approach helps businesses make fairer, more informed hiring choices.
PXT Select is a specialist hiring tool designed to provide objective insights into a candidate’s thinking style, behaviours, and work preferences. By using science-backed assessments, businesses can:
- Reduce the risk of hiring the wrong person
- Improve retention and employee engagement
- Ensure candidates are not just skilled but also the right fit for the team
Preparing for the Future of Hiring
With Day One Rights reshaping the hiring process, businesses need to take a proactive approach to recruitment and retention. Now is the time to:
Review hiring processes
Ensure job descriptions, assessments, and interviews effectively evaluate candidates beyond just skills.
Strengthen onboarding and development
Engage and support new employees from the start to improve retention.
Use hiring tools
Gain insights into candidates before hiring to reduce the risk of poor-fit hires.
To read the full details of the Employment Rights Bill, you can download the UK government’s Next Steps to Make Work Pay. And if you’re looking to make more confident hiring decisions, explore how PXT Select can help you build a stronger, more productive workforce.
