Employment law changes in 2026: what employers need to know
There have already been some fairly significant changes to employment law in 2026, and there are more on the way.
There have already been some fairly significant changes to employment law in 2026, and there are more on the way.
The Employment Rights Act 2025 is being introduced gradually rather than all at once, which gives businesses some time to prepare. But with several important changes coming into force before the end of the year, now is a good time to check your policies and make sure managers know what is changing.
Here is a straightforward look at what has already changed and what employers need to be aware of next.
What changed in April 2026?
A number of changes came into effect in April, including new rules around sick pay, family leave and holiday records.
1. Statutory Sick Pay from day one
From the 6th April 2026, Statutory Sick Pay became payable from the first full day of sickness absence.
The previous three day waiting period was removed, along with the Lower Earnings Limit. This means eligible employees can now receive SSP regardless of how much they earn.
SSP is calculated at 80% of average weekly earnings or the standard weekly rate, whichever is lower.
For employers, it is worth checking that sickness policies, payroll systems and any guidance given to managers reflect the new rules.
2. Paternity and parental leave became day-one rights
Employees can now give notice to take Paternity Leave and Unpaid Parental Leave from their first day of employment.
Previously, employees needed a qualifying period of service before becoming eligible for these types of leave.
There were also changes allowing fathers and partners to take Paternity Leave and Pay after Shared Parental Leave and Pay.
3. New Bereaved Partner's Paternity Leave
A new right to Bereaved Partner's Paternity Leave also came into force on the 6th April.
It gives eligible employees time away from work if their partner, or the mother of their child, dies within the first year of the child's life or adoption.
This is a day one right and can provide up to 52 weeks of leave depending on when the bereavement happens. There is currently no statutory requirement for that leave to be paid.
4. Holiday pay records must be kept for six years
Employers are now required to keep adequate records showing that they have complied with annual leave and holiday pay rules.
These records must be retained for at least six years from the date they were made. This could include records of annual leave taken and the holiday pay employees received.
For smaller businesses in particular, this makes having a consistent way of recording leave and keeping employment records increasingly important.
5. Higher penalties for collective redundancy failures
Employment law changes in 2026: what employers need to know
There have already been some fairly significant changes to employment law in 2026, and there are more on the way.
There have already been some fairly significant changes to employment law in 2026, and there are more on the way.
The Employment Rights Act 2025 is being introduced gradually rather than all at once, which gives businesses some time to prepare. But with several important changes coming into force before the end of the year, now is a good time to check your policies and make sure managers know what is changing.
Here is a straightforward look at what has already changed and what employers need to be aware of next.
What changed in April 2026?
A number of changes came into effect in April, including new rules around sick pay, family leave and holiday records.
1. Statutory Sick Pay from day one
From the 6th April 2026, Statutory Sick Pay became payable from the first full day of sickness absence.
The previous three day waiting period was removed, along with the Lower Earnings Limit. This means eligible employees can now receive SSP regardless of how much they earn.
SSP is calculated at 80% of average weekly earnings or the standard weekly rate, whichever is lower.
For employers, it is worth checking that sickness policies, payroll systems and any guidance given to managers reflect the new rules.
2. Paternity and parental leave became day-one rights
Employees can now give notice to take Paternity Leave and Unpaid Parental Leave from their first day of employment.
Previously, employees needed a qualifying period of service before becoming eligible for these types of leave.
There were also changes allowing fathers and partners to take Paternity Leave and Pay after Shared Parental Leave and Pay.
3. New Bereaved Partner's Paternity Leave
A new right to Bereaved Partner's Paternity Leave also came into force on the 6th April.
It gives eligible employees time away from work if their partner, or the mother of their child, dies within the first year of the child's life or adoption.
This is a day one right and can provide up to 52 weeks of leave depending on when the bereavement happens. There is currently no statutory requirement for that leave to be paid.
4. Holiday pay records must be kept for six years
Employers are now required to keep adequate records showing that they have complied with annual leave and holiday pay rules.
These records must be retained for at least six years from the date they were made. This could include records of annual leave taken and the holiday pay employees received.
For smaller businesses in particular, this makes having a consistent way of recording leave and keeping employment records increasingly important.
5. Higher penalties for collective redundancy failures
The maximum protective award where an employer fails to meet its collective redundancy consultation obligations doubled from 90 days pay to 180 days pay for each affected employee.
These rules can apply where 20 or more redundancies are proposed at one establishment within a 90 day period.
6. Stronger whistleblowing protection
Workers who report sexual harassment now have stronger whistleblowing protections.
This means businesses should make sure their whistleblowing and harassment policies are clear, accessible and understood by employees.
7. The Fair Work Agency launched
The Fair Work Agency launched on the 7th April 2026, bringing enforcement of several employment rights under one organisation.
Its responsibilities include areas such as National Minimum Wage enforcement, agency worker protections and gangmaster licensing, with further responsibilities expected over time.
8. National Minimum Wage rates increased
The National Minimum Wage and National Living Wage also increased on the 1st April 2026. The current minimum hourly rates are:
£12.71 for workers aged 21 and over
£10.85 for workers aged 18 to 20
£8.00 for workers under 18
£8.00 for eligible apprentices
What is changing next?
April was only one part of the wider employment law reforms, with several more changes due before the end of 2026.
Trade union ballots
From the 25th Aug 2026, electronic and workplace balloting will be introduced for statutory trade union ballots.
This forms part of wider changes to trade union legislation taking place throughout the year.
Employment Tribunal time limits
From the 1st October 2026, for most Employment Tribunal claims, the time available to bring a claim will increase from three months to six months.
The government says the change is intended to give employers and employees more time to resolve disputes internally or through conciliation before reaching a tribunal.
Employers should check any policies or employee handbooks that currently refer to the three month time limit.
Stronger harassment protections
From 30 October 2026, employers will have a stronger legal duty to prevent sexual harassment at work.
At the moment, employers must take reasonable steps to prevent it. From October, that will change to a requirement to take all reasonable steps.
The new rules will also extend protection to harassment by third parties, such as customers and clients. Employers will be expected to take action to prevent this type of behaviour towards their employees.
It is worth reviewing your harassment policies, reporting processes and staff training before the changes come into force.
Further trade union reforms
Also from the 30th October 2026, independent trade unions will gain new rights to request access to workplaces, either physically or digitally. Employers with 21 or more workers may ultimately have access arrangements determined by the Central Arbitration Committee if an agreement cannot be reached.
There will also be stronger rights for trade union representatives and greater protection for workers taking protected industrial action.
What changes are coming in 2027?
Unfair dismissal changes from the 1st January
One of the most significant changes for employers arrives at the start of 2027. From the 1st January, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months.
Employees will also gain the right to request written reasons for dismissal after six months of service, while the current cap on compensatory awards for unfair dismissal will be removed.
This does not mean employers cannot dismiss someone once they have reached six months' service. It does mean that, in more cases, employers will need to show that there was a fair reason for the dismissal and that a fair process was followed.
If your business uses probation periods, now is a good time to review how these work alongside the new six month qualifying period.
Further changes through the year
These include reforms relating to flexible working, guaranteed hours, bereavement leave, pregnancy and maternity protections, collective redundancies and the use of non-disclosure agreements in harassment and discrimination cases.
Some of the detail is still being consulted on, so there is no need to start rewriting policies based on assumptions. Instead, keep an eye on the official guidance and make changes once the final rules and implementation dates are confirmed.
What should employers do now?
There is no need to rewrite every HR policy overnight, but there are a few sensible things businesses can do now.
Review your sickness, family leave, holiday, redundancy, whistleblowing and harassment policies. Make sure any changes that came into force in April are already reflected in your processes.
It is also worth reviewing probation and dismissal procedures ahead of January 2027, particularly if six month probation periods are standard in your business.
Finally, make sure employment records are being kept properly. As requirements around areas such as holiday pay become more specific, relying on spreadsheets, emails or someone's memory can make things unnecessarily difficult.
Keeping employee records, leave requests and documents organised in one place makes these changes much easier to manage.
This article is intended as a general overview and should not be treated as legal advice. For advice about your specific situation, speak to an employment law professional or Acas.
Spend less time on HR admin
Keep employee records, leave, documents, expenses and everyday HR tasks organised in one simple place.
The maximum protective award where an employer fails to meet its collective redundancy consultation obligations doubled from 90 days pay to 180 days pay for each affected employee.
These rules can apply where 20 or more redundancies are proposed at one establishment within a 90 day period.
6. Stronger whistleblowing protection
Workers who report sexual harassment now have stronger whistleblowing protections.
This means businesses should make sure their whistleblowing and harassment policies are clear, accessible and understood by employees.
7. The Fair Work Agency launched
The Fair Work Agency launched on the 7th April 2026, bringing enforcement of several employment rights under one organisation.
Its responsibilities include areas such as National Minimum Wage enforcement, agency worker protections and gangmaster licensing, with further responsibilities expected over time.
8. National Minimum Wage rates increased
The National Minimum Wage and National Living Wage also increased on the 1st April 2026. The current minimum hourly rates are:
£12.71 for workers aged 21 and over
£10.85 for workers aged 18 to 20
£8.00 for workers under 18
£8.00 for eligible apprentices
What is changing next?
April was only one part of the wider employment law reforms, with several more changes due before the end of 2026.
Trade union ballots
From the 25th Aug 2026, electronic and workplace balloting will be introduced for statutory trade union ballots.
This forms part of wider changes to trade union legislation taking place throughout the year.
Employment Tribunal time limits
From the 1st October 2026, for most Employment Tribunal claims, the time available to bring a claim will increase from three months to six months.
The government says the change is intended to give employers and employees more time to resolve disputes internally or through conciliation before reaching a tribunal.
Employers should check any policies or employee handbooks that currently refer to the three month time limit.
Stronger harassment protections
From 30 October 2026, employers will have a stronger legal duty to prevent sexual harassment at work.
At the moment, employers must take reasonable steps to prevent it. From October, that will change to a requirement to take all reasonable steps.
The new rules will also extend protection to harassment by third parties, such as customers and clients. Employers will be expected to take action to prevent this type of behaviour towards their employees.
It is worth reviewing your harassment policies, reporting processes and staff training before the changes come into force.
Further trade union reforms
Also from the 30th October 2026, independent trade unions will gain new rights to request access to workplaces, either physically or digitally. Employers with 21 or more workers may ultimately have access arrangements determined by the Central Arbitration Committee if an agreement cannot be reached.
There will also be stronger rights for trade union representatives and greater protection for workers taking protected industrial action.
What changes are coming in 2027?
Unfair dismissal changes from the 1st January
One of the most significant changes for employers arrives at the start of 2027. From the 1st January, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months.
Employees will also gain the right to request written reasons for dismissal after six months of service, while the current cap on compensatory awards for unfair dismissal will be removed.
This does not mean employers cannot dismiss someone once they have reached six months' service. It does mean that, in more cases, employers will need to show that there was a fair reason for the dismissal and that a fair process was followed.
If your business uses probation periods, now is a good time to review how these work alongside the new six month qualifying period.
Further changes through the year
These include reforms relating to flexible working, guaranteed hours, bereavement leave, pregnancy and maternity protections, collective redundancies and the use of non-disclosure agreements in harassment and discrimination cases.
Some of the detail is still being consulted on, so there is no need to start rewriting policies based on assumptions. Instead, keep an eye on the official guidance and make changes once the final rules and implementation dates are confirmed.
What should employers do now?
There is no need to rewrite every HR policy overnight, but there are a few sensible things businesses can do now.
Review your sickness, family leave, holiday, redundancy, whistleblowing and harassment policies. Make sure any changes that came into force in April are already reflected in your processes.
It is also worth reviewing probation and dismissal procedures ahead of January 2027, particularly if six month probation periods are standard in your business.
Finally, make sure employment records are being kept properly. As requirements around areas such as holiday pay become more specific, relying on spreadsheets, emails or someone's memory can make things unnecessarily difficult.
Keeping employee records, leave requests and documents organised in one place makes these changes much easier to manage.
This article is intended as a general overview and should not be treated as legal advice. For advice about your specific situation, speak to an employment law professional or Acas.
Spend less time on HR admin
Keep employee records, leave, documents, expenses and everyday HR tasks organised in one simple place.
