RTI compliance when paying early at Christmas, what employers need to know

A new government consultation under the Employment Rights Bill proposes stronger dismissal protections for pregnant employees and new mothers. These proposals could have significant implications for employers, particularly those responsible for payroll, HR and small to medium sized teams.

What is being proposed

The proposals aim to make it unlawful to dismiss a pregnant woman, a mother on maternity leave, or a mother who has returned to work in the previous six months, except in strictly defined circumstances.

The consultation is also exploring when these protections should start, for example from the point the employee notifies their employer of the pregnancy or from their first day of employment. It is also considering how long protections should last, which could be up to eighteen months after birth or six months after returning to work.

Employers may still be allowed to dismiss in certain limited situations, but under much tighter rules. Fair reasons such as conduct, capability or redundancy may only be permitted under stricter tests such as serious misconduct, safety risk or severe business harm.

The consultation is also considering whether similar protections should be extended to other types of family leave, including adoption leave, shared parental leave and neonatal care leave.

In simple terms, the aim is to significantly strengthen job security for pregnant women and new mothers through a new protected period where dismissal is only permitted in narrow and clearly defined situations.

What this could mean for your business

Greater job security obligations 
If these proposals become law, businesses will need to take extra care to ensure they are not dismissing employees who fall within the protected period, unless strict legal tests are met. Any dismissal will require very careful justification and clear supporting evidence.

More complexity in HR and recruitment 
Recruitment decisions, probation periods, performance management and potential dismissal situations will become more complex. The timing of when an employee becomes protected will also be critical, particularly for new starters.

A greater need for robust documentation 
Employers may need to update staff handbooks, disciplinary procedures and dismissal policies. Where dismissal of a protected employee is considered, documentation and decision making will need to meet much higher standards.

Potential impact on hiring decisions 
There is concern that some employers may become more cautious about hiring women of child bearing age due to perceived risk. Avoiding discriminatory practices while remaining compliant will be essential.

Wider implications for payroll and HR support 
For payroll and HR support providers, particularly those supporting smaller businesses, these changes mean a greater need for advisory input, updated templates and clear guidance around protected periods and record keeping.

What you should be doing now

Review your current HR and dismissal procedures, particularly around recruitment, probation, misconduct and redundancy.

Update staff handbooks and employment contracts so they are ready to reflect the new protected period once legislation is confirmed.

Ensure robust documentation and fair decision making is embedded across the business.

Consider the impact on workforce planning and future hiring strategies.

Stay informed as the consultation progresses and legislation is finalised.

What this means for your payroll provider

These proposals highlight the growing complexity of payroll and employment compliance. Businesses will increasingly rely on trusted providers to help them manage changing legislation, update documentation and stay protected from risk.

A proactive payroll partner will help ensure policies, calculations and record keeping processes adapt smoothly as new rules are introduced.