UK Employment Law Changes – Six Considerations for Contact Centres

From statutory sick pay to sexual harassment and unfair dismissal, major employment law changes are underway in the UK.

In the latest episode of the CCMA’s Informer podcast, Peninsula UK’s Employment Services Director and employment law guru Kate Palmer joined CCMA CEO Leigh Hopwood to break down what’s coming up, what contact centre leaders need to know and how to prepare.

Sick Pay and Unfair Dismissal

In July, the Labour government outlined its roadmap for implementation of the Employment Rights Bill, and the most significant employment law reforms in a generation.

New sexual harassment legislation is already in force, requiring employers to take “reasonable steps” to prevent harassment in the workplace. But by 2027, this standard will be raised to “all reasonable steps”, a subtle but significant change that increases employer liability.

For contact centres and their wider organisations, Kate emphasised the need for proactive policies, leadership training, and clear documentation – not just in theory, but in everyday practice.

Another headline reform is around Statutory Sick Pay (SSP). From April 2026, the lower earnings limit will be scrapped, and the current three-day waiting period for SSP will be removed. This will broaden access but could also drive up absence-related costs, something many contact centre environments will need to be alert to.

The Fair Work Agency

Kate also highlighted upcoming reforms to unfair dismissal rights. The qualifying period will be reduced from two years to nine months, meaning businesses must focus on stronger recruitment, onboarding, and early performance management. This will be a cultural shift for any leaders used to leaning on “short service” as a safety net.

From a macro perspective, rising National Insurance contributions are pushing organisations to focus even more on retention than acquisition. With the job market stabilising post-COVID, contact centre leaders are looking at employee engagement, wellbeing and leadership development as vital retention levers.

Looking further ahead, the creation of a Fair Work Agency and potential extension of tribunal claim windows from three to six months could lead to a rise in litigation. More than ever, the message is clear. Leaders must treat people well, document everything and keep ahead of policy change.

Key Takeaways

• Sexual harassment prevention laws are now active, with stricter standards coming by 2027. Leaders must train teams and implement clear policies now.

• Statutory sick pay will be more accessible, driving up absence costs – requiring absence policies to be in full working order before April 2026.

• Unfair dismissal protection will begin at nine months’ service. Recruitment, onboarding and early performance management are now more critical than ever.

• National Insurance increases are hitting budgets, so retention strategies are becoming just as important as hiring.

• Tribunal claims may soon be easier and more common, with the launch of the Fair Work Agency and longer claim windows.

• Family-friendly rights (e.g. paternity and parental leave) are becoming day-one entitlements – policies and handbooks must reflect this shift.

Want help preparing for the changes? CCMA members can access expert advice for free, via the Peninsula employment law helpline.

About the Author

Chris Ward, Content and Communications Manager, CCMA

As content and communications manager, Chris works closely with the CCMA team and the contact centre community to ensure members receive the most relevant, timely and engaging content about their industry. Prior to working with the CCMA, Chris was a seasoned business journalist – this included nine years writing about trends in the CX and contact centre space for former industry publication, MyCustomer.