06/02/2026

The Employment Rights Bill has now become law, making it the Employment Rights Act 2025. The Act represents a major overhaul of UK employment law with significant implications for employers.

The employment law changes contained in the Act will be introduced in phases throughout 2026 and 2027. Here’s what to expect and how to prepare your business:

Employment law changes already in effect

A number of provisions have been introduced, which do not give rise to any new employment rights themselves, but grant powers to make further substantive regulations (and in some cases codes of practice) in relation to, for example, flexible working, zero-hours workers, fire and rehire and family-related leave.

From February 2026, we have seen automatic unfair dismissal protection for participation in industrial action introduced, as well as streamlined rules for industrial action notices, ballots and picketing.

Major employment rights changes taking effect from April 2026

  • Removal of minimum earnings threshold for entitlement to SSP and several family leave payments.
  • Extended statutory paternity leave (day one right) and expanded shared parental leave entitlements.
  • Day one right to parental leave.
  • From 7 April – A new statutory enforcement body – The Fair Work Agency – is due to be established to enforce a wide range of employment rights including holiday pay, SSP, minimum wage compliance and whistleblowing protections.

The following changes are also expected in April 2026:

  • SSP will become payable from day one of sickness with no lower earnings limit.
  • Increase to the protective award, from 90 to 180 days’ pay, for failures in conducting collective consultations in redundancy situations.
  • Disclosures of sexual harassment will be classified as ‘protected’, meaning workers reporting such conduct gain legal protection from detriment and unfair dismissal. More regularly known as ‘whistleblowing’.

Further employment rights changes expected in October 2026

  • Introduction of a statutory duty to take all reasonable steps to prevent sexual harassment, including from third parties.
  • Extended time limits from three to six months for all employment tribunal claims ‘no earlier than October 2026’.

Employment rights changes January 2027

  • Removal of the unfair dismissal compensation cap from 1 January.
  • Reduction of the qualifying period for unfair dismissal claims from two years to six months for anyone with six months’ service.

Employment rights changes expected in 2027

  • Other protections – for flexible working, enhanced parental leave rights, pregnancy protections and more – will be introduced through secondary legislation in 2027.
  • Ban on dismissal and re-engagement, otherwise known as ‘fire and rehire’, tactics.

What should employers do to prepare for the forthcoming changes to employment rights?

The employment changes being introduced in 2026 and 2027 are the most significant we have seen for a generation, so it is crucial that businesses start to prepare now. There are a number of steps we would recommend taking to ensure you are ready for all the reforms that are coming in.

  • Carry out an audit of internal policies to ensure they reflect the changes to employment law.
  • Review your staff handbook and all templates to ensure day-one entitlements are clearly defined.
  • Ensure all managers are trained on the new requirements.
  • Review third-party contracts in light of the new duties to prevent third-party harassment and strengthened union access rules.
  • Put clear reporting systems in place to ensure a clear paper trail of compliance.

Need more advice on the Employment Rights Act?

For tailored guidance on the forthcoming employment reforms and how they affect your business, please don’t hesitate to get in touch with our Stoke-on-Trent employment solicitors on 01782 205000, our Altrincham employment solicitors on 0161 929 8494 or email enquiry@beswicks.com.