2026: A landmark year for employment law

2026 marks one of the most significant periods of change for employment law in decades. Following the Royal Assent of the Employment Rights Act 2025 on 18 December 2025, employers and HR professionals face a sweeping transformation of workplace rights in line with the government’s “Plan to Make Work Pay”. While the Act is now law, most provisions will come into effect gradually over the coming years, with key implementation dates for this year set for 6 April and 1 October 2026, and some reforms arriving as early as February. Further consultations are expected early this year.

Major changes and timelines

February 2026

Trade union reforms

• Support thresholds removed: The 40% support threshold for industrial action ballots in “important public services” will be removed.
• Extended mandates: Ballots for industrial action will remain valid for 12 months instead of 6.
• Reduced notice period: The notice period for industrial action will drop from 14 to 10 days.

A recent government press release sets out the details of the trade union reforms, which will take effect on 18 February 2026.

April 2026

Family leave and workplace rights

• Paternity leave: The 26‑week service requirement will be removed, making eligibility a day‑one right. A new bereaved partner’s paternity leave will be introduced from April, providing up to 52 weeks of leave for fathers and partners who lose their partner before their child’s first birthday.
• Unpaid parental leave: This will also become a day-one entitlement.
• Whistleblowing: Sexual harassment disclosures will become “qualifying disclosures”, gaining explicit protection.
• Menopause action plans and gender pay gap reporting: Voluntary measures for large employers (due to become mandatory in 2027).

SSP and family leave overhaul

• Statutory sick pay (SSP): Waiting periods will be abolished and SSP will be payable from day one.
• Lower earnings limit removed: SSP eligibility will be extended to all employees.
• Statutory rate increases:
  • Minimum wage for 21+: £12.71/hour
  • SSP: £123.25/week
  • Family leave pay: £194.32/week

Enforcement and penalties

• Fair Work Agency (FWA): A new enforcement body with powers to investigate exploitation and impose penalties.
• Collective redundancy: Maximum protective award will increase from 90 to 180 days’ pay.
• Trade unions: The trade union recognition process will be simplified, with reforms made to electronic and workplace balloting.

October 2026

Harassment and employment protections

• Sexual harassment: Employers must take “all reasonable steps” to prevent harassment. This duty will extend to protecting employees from third‑party sexual harassment (e.g. customers).
• Non‑disclosure agreements: Changes are expected (date TBC) to void clauses that prevent workers from alleging or disclosing work-related harassment or discrimination.
• Fire and rehire restrictions: Dismissals for refusing certain contractual changes will become automatically unfair, with limited exceptions.
• Employment tribunal time limits: Extended from 3 to 6 months.
• Tipping: Employers must consult with workers or their representatives before creating a tipping policy and must update the policy every three years.
• Trade union rights:
  • Strengthened rights of access for unions
  • Employers must inform workers of their right to join a union
  • New rights and protections for trade union representatives
  • Increased protection against detriment for taking part in industrial action

Looking ahead to 2027

• Unfair dismissal: The qualifying period for unfair dismissal claims will drop from two years to six months, and the compensation cap will be removed.
• Zero‑hours contracts: Guaranteed hours based on reference periods are anticipated.
• Equality Bill: Mandatory ethnicity and disability pay gap reporting for large employers.
• Pregnancy and maternity rights: Strengthened protections against dismissal for pregnant employees and those returning from maternity leave are expected.

Additional developments expected in 2026

• The Equality (Race and Disability) Bill – intended to introduce rights to equal pay for ethnic minorities and disabled people, and to introduce disability and ethnic pay gap reporting.
• Proposals to limit non‑compete clauses.
• A review of employment status.
• Consultations on AI in the workplace.
• Possible TUPE reform.

We will continue to update our Employment Rights Hub and will be running webinars on the changes and forthcoming consultations to keep you informed. Please reach out to us if you have any queries.