Employment Law in 2026: Looking Ahead

Employment law in the UK is undergoing one of its most significant transformations in decades. With the Employment Rights Act now having received Royal Assent, 2026 marks the beginning of sweeping changes that will impact employers and employees alike. We have published several blogs and hosted webinars on the topic, but suffice to say it will be a busy time for employers, who will need to review their policies and procedures to get ready for the changes ahead. We summarise key changes below.

From April 2026, a number of significant reforms will take effect, most notably the expansion of several employment rights:

• The amount of a protective award, awarded to employees who have successfully claimed that their employer has failed in its duties in relation to collective redundancy consultation, will double to up to 180 days of actual pay per employee;
• Statutory Sick Pay will become payable from day one of absence, removing the current 3 day “waiting” period, and it will be available to employees even if they do not meet the lower earnings threshold;
• Eligibility for statutory paternity leave, unpaid parental leave and unpaid bereavement leave will apply immediately from the start of employment (i.e. they will become “day one” rights). In addition, eligible employees will be able to take paternity leave following a period of shared parental leave;
• Disclosure of sexual harassment will become a “protected” disclosure, making it clear that such disclosures will be subject to the law around whistleblowing (i.e. employees reporting sexual harassment will be protected from being dismissed or being subject to a detriment for making the disclosure);
• The Fair Work Agency, a new enforcement body designed to improve compliance with employment law, will be established. The Agency will provide clearer guidance and support to employers on how to meet their legal obligations. In time, it will have the power to take action against employers which do not comply with certain aspects of employment law; and

Various changes will be brought in to give trade unions more rights and powers.

Further reforms will follow in October 2026:

• Restrictions will be introduced on “fire and rehire” tactics, limiting the circumstances in which employers can rely on dismissal and re-engagement or replacement, as a means of changing contractual terms;
• Time limits for employees to make Employment Tribunal claims will increase (generally, from 3 to 6 months from the date of the act complained of);
• Employers will be placed under a new, more onerous, duty to take "all reasonable steps" to prevent workplace sexual harassment, including harassment by third parties. If you haven’t taken steps already, discover how our Training Pack can help you prevent harassment in your organisation and meet your legal duties;
• Employees will be entitled to a statement of their trade union rights, as well as more protection in relation to industrial action. Trade unions will have more access to workplaces; and
• Tipping laws will be tightened, requiring greater transparency and fairness in how tips are allocated.

Looking ahead to 2027, numerous changes are expected to come into force including:

• The qualifying period for making a claim of ordinary unfair dismissal will reduce from 2 years of continuous service, to 6 months. (Please note that our previous posts and blogs on this subject state that employees would have unfair dismissal rights from day one of employment. However, this proposal has since been abandoned.);
• There will be stronger protections to prevent dismissal of employees during or after statutory family leave;
• Larger employers will require to develop and publish equality action plans;
• Employees who are pregnant, or are on or recently returned from maternity leave will have stronger protection against dismissal;
• Regulations will specify what amounts to “reasonable steps” in the context of preventing sexual harassment;
• The threshold for triggering the collective consultation rules in redundancy situations will change to capture more redundancy scenarios which will impact on multi-site employers;
• Employers will have to explain why any rejection of flexible working requests is reasonable;
• The right to statutory bereavement leave will be expanded to cover the loss of a wider range of loved ones;
• Employers will be obliged to offer guaranteed hours, notice of shifts and compensation for changed or cancelled shifts, to zero and low hours workers, who will also have more protections generally under the law.

The changes introduced by the Employment Rights Act represent a major shift in the way employment relationships are regulated. Employers should act now to review policies, update procedures, and ensure compliance with the new requirements. Staying informed and proactive will not only help avoid legal pitfalls but also foster a positive workplace culture. As further reforms roll out into 2027, we’ll continue to provide guidance and resources to help you navigate this evolving legal landscape.