Employment Law Changes 2026 | What You Need To Know

Looking ahead to 2026, the landmark Employment Rights Bill continues its phased rollout, bringing sweeping reforms that significantly strengthen employee protections. Here’s a breakdown of what you need to know to guide your business through these changes:

1. April 2026 – Day One Rights & Sick Pay Boost

a) One?day Statutory Sick Pay (SSP) & Eligibility
From April 2026, the three-day waiting period and lower earnings threshold for SSP will be abolished—workers will qualify from day one, creating additional payroll commitment.
b) Day One Paternity & Parental Leave
Employees will gain entitlement to paternity leave and unpaid parental leave from their first day of employment.
c) Enhanced Whistleblowing Protection
Sexual harassment will now be a protected ground for whistleblowing—encouraging safer reporting of workplace misconduct.
d) Flexible Trade Union Rights
April brings simplified trade union recognition, electronic and workplace balloting, and improved member protections.
e) Doubling Redundancy Consultation Penalties
The maximum protective award for inadequate collective redundancy consultation increases to 180 days’ pay per employee, up from 90 days.
f) Launch of Fair Work Agency
A new dedicated enforcement body—the Fair Work Agency—will begin operations, consolidating multiple regulators.

2. October 2026 – Fire & Rehire, Harassment & Tribunals

a) Ban on Fire-and-Rehire
The practice of “fire and rehire” (firing staff to re-engage them with worsened terms) will be unlawful except in extreme financial hardship cases.
b) Mandatory Harassment Prevention
Employers must take all reasonable steps to prevent workplace sexual harassment and harassment by third parties—legal obligations become enforceable.
c) Extended Tribunal Claim Time Limits
Employees will have up to six months to file most claims in Employment Tribunals, up from the current three months.
d) Enhanced Union Access & Industrial Action Rights
The Bill introduces stronger rights for union representatives and increases protections for workers participating in industrial action.
e) Tip Allocation Rules
New regulations require consultation on tipping policies, regular reviews, and upfront transparency.

3. 2027 and Beyond – Fair Dismissals & Flexible Work

a) Day One Unfair Dismissal
Employees will be able to claim unfair dismissal from day one. There will be a probationary period—likely around nine months—during which a lighter dismissal process applies. Full enforcement isn't expected until 2027.
b) Flexible Working Reforms
Default flexible working rights and broader protections for zero-hours workers, agency workers, pregnant workers, and more are expected in 2027.
c) Bereavement Leave & Gender-Pay Plans
Entitlement to bereavement leave, mandatory menopause and gender pay gap action plans, and other protections such as against blacklisting and regulating umbrella companies will come into force in 2027.

4. April 2026 – Rate Adjustments

Alongside legal changes, employers should prepare for the usual April uplift in statutory rates:

• National Minimum Wage & National Living Wage

• Family?related payments (maternity, paternity, adoption pay)

• SSP rate

• Statutory redundancy cap & Employment Tribunal Vento bands

Why It Matters

These reforms reshape the employer–employee dynamic in several key ways:
Cost & Compliance: From increased SSP costs to more stringent dismissal protocols and tribunal exposure.
Policy Overhaul: Review and update handbooks, contracts, disciplinary and absence policies.
HR & Training: Staff must be equipped to navigate day?one rights, harassment prevention, trade union engagement, and flexible working.
Strategic Hiring: With day-one unfair dismissal rights, structured probation and background checks become even more vital.

Preparation Checklist

1. Audit & Update Contracts — Include explicit probation clauses and fair dismissal policies.

2. Revise HR Policies — Boost procedures for SSP, trade unions, whistleblowing, flexible work, redundancy and harassment.

3. Train Managers & HR Professionals — Ensure readiness for new rights and duties.

4. Review Payroll & Systems — Automate accurate SSP tracking from day one and absorption of wage hikes.

5. Strengthen Recruitment & Exit Protocols — More thorough vetting, probation reviews, and documentation.