UK employment law continues to evolve, with significant employment law changes being introduced throughout 2026 and into 2027. The Employment Rights Act 2025 is bringing some of the most significant reforms in recent years, with changes being introduced in stages.
For employers and HR teams, keeping up with new employment laws in 2026 and 2027 is more than simply knowing when legislation comes into force. Changes may require updates to policies, contracts of employment, procedures, training, payroll and day-to-day HR practices. Reviewing arrangements early can help prepare and reduce legal risks.
Changes Already in Force
Several important employment law changes in 2026 have already taken effect:
Statutory Sick Pay (SSP)
From 6 April, SSP became payable from day-one of sickness absence, with the Lower Earnings Limit (LEL) removed. SSP is paid at 80% of average weekly earning or ยฃ123.25 per week, whichever is lower. Action: Review payroll and sickness absence procedures to ensure the new rules are being applied correctly.
Paternity Leave and Unpaid Parental Leave
From 6 April, both became day-one rights, removing the previous qualifying service requirement. Action: Update family leave policies and ensure managers understand the new eligibility requirements.
Collective Redundancy
From 6 April, the maximum protective award for failing to comply with collective redundancy consultation requirements increased from 90 to 180 daysโ pay per affected employee. Action: Review redundancy procedures and ensure collective consultation requirements are identified and followed.
Whistleblowing Protections for Sexual Harassment
From 6 April, disclosures with regards to sexual harassment can qualify for whistleblowing protection where the relevant conditions are met. Action: Review whistleblowing and sexual harassment policies and ensure employees know how to raise concerns.
Trade Union Recognition
From 6 April, the statutory trade union recognition process was simplified. Unions no longer need to demonstrate likely majority support when applying for recognition, and the previous 40% support threshold in recognition ballots has been removed. Action: Ensure those responsible for HR and employee relations understand the revised recognition process.
The Fair Work Agency (FWA)
Established on 7 April, the FWA brings together key statutory employment rights. Action: Ensure employment law obligations are met, particularly in areas such as National Minimum Wage compliance. Good record-keeping is also important.
Record Keeping
From 6 April 2026, employers are obligated to keep records of annual leave and holiday pay, including holiday taken, holiday carried over from previous years, holiday pay and any payments in lieu of holiday. Employers must also record details of how holiday pay is calculated and what is included in it. These records must be kept for a minimum of 6 years from the date they were made.
Changes Due Later in 2026
Further employment law changes are expected during the remainder of 2026.
Expanded Trade Union Rights
By 31 August, electronic and workplace balloting will be introduced for statutory trade union ballots. From 30 October, further reforms will give trade unions the right to access the employerโs workplace, introduce a new duty on employers to inform employees of their right to join a union and make further changes to recognition and industrial action. Action: Review trade union policies and procedures and ensure managers understand their obligations. Employers will be required to provide workers with written confirmation that they have the right to join a trade union. The exact form is yet to be confirmed but is likely to require updates to either the employment contract, handbook or new starter documentation.
Employment Tribunal Time Limits
From 1 October, the time limit for bringing most Employment Tribunals claims will increase from three months to six months; where the event occurred on or after 1 October 2026.
Sexual Harassment
From 30 October, employers will be required to take โall reasonable stepsโ to prevent sexual harassment, alongside new protections relating to third-party harassment. The 3rd party right protections will extend beyond sexual harassment and include harassment related to age, disability, gender reassignment, race, religion or belief, sex and sexual orientation. Action: Review policies, risk assessments, reporting and complaints procedures. Provide training for managers and ensure practical preventative measures are in place.
Tipping Rules
Further tipping reforms are expected later in 2026. Employers will be required to consult employees with employees when developing or reviewing tipping policies. Action: Review tipping arrangements and prepare for the new consultation requirements.
Changes Due in 2027
The following two measures have a confirmed commencement date of 1 January 2027:
Unfair Dismissal
The qualifying period for ordinary unfair dismissal will reduce from 2 years to 6 months and the cap on compensation awards will also be removed. This will be applied retrospectively, so employees who have already accrued at least six months’ service by 1 January 2027 will acquire ordinary unfair dismissal protection immediately on that date. Employees recruited after that point will acquire protection once they reach six months’ service. Action: Review dismissal and probation procedures, ensure managers are following fair and consistent processes and maintain clear records from the outset of employment.
Removal of the Unfair Dismissal Compensation Cap
From 1st January 2027, the compensation cap for unfair dismissal claims will be removed. Although removal of the statutory ceiling materially increases potential exposure (especially in respect of high earners), compensation will continue to be assessed by reference to the Claimant’s actual losses and the usual principles of mitigation.
The Government has also confirmed a number of further measures will be introduced during 2027, although exact commencement dates remain to be confirmed:
The Fair Work Agency
Increased enforcement activity. The Government has indicated that the Agency’s remit will expand further, including enforcement activity relating to holiday pay and statutory sick pay. Action: Ensure all records are recorded accurately and retained for the required periods.
Fire & Rehire Protections
It will generally be automatically unfair to dismiss an employee because they refuse to agree to certain contractual changes where the employer seeks to impose those changes. Action: Review contractual variation procedures and use meaningful consultation and alternative options rather than relying on dismissal and re-engagement.
Gender Equality & Menopause Action Plans
Action plans will become mandatory for employers with 250 or more employees, requiring action to address gender quality and support employees experiencing menopause. Action: Review gender pay gap data and begin identifying practical actions.
Protection for Pregnant Women and New Mothers
Enhanced protections will make it more difficult to dismiss pregnant employees and new mothers, except in specific circumstances. Action: Review redundancy and dismissal procedures and ensure managers understand the additional protections.
Blacklisting
Protections against blacklisting will be extended, strengthening safeguards for employees who are or have been trade union members or have taken part in trade union activities. Action: Review recruitment and HR processes to ensure decisions are not influenced by unlawful trade union-related information.
Industrial Relations
Further reforms will introduce a new framework governing industrial relations and trade union activities. Action: Review trade union and industrial relations procedures and ensure managers understand their obligations.
Collective Redundancy
The threshold for collective consultation is due to change. Action: Keep redundancy procedures under review and prepare for the revised threshold.
Flexible Working
The process for handling flexible working requests will be strengthened. Action: Review flexible working policies and ensure requests are properly considered and decisions clearly documented.
Bereavement Leave
A new statutory right to bereavement leave will be introduced, including specific provision for pregnancy loss. Action: Review bereavement and compassionate leave policies and ensure managers are equipped to handle requests sensitively.
Non-Disclosure Agreements (NDAโs)
Regulations will be introduced to prevent the misuse of NDAโs in cases involving workplace harassment or discrimination. Action: Review NDA, settlement agreement and grievance procedures to ensure agreements do not improperly prevent employees from reporting or discussing harassment or discrimination.
The Employment Rights Act 2025 introduces many of these reforms, with further details and commencement dates to follow. The Government timeline update sets out the latest information for changes that have already been introduced or are expected to be introduced in 2026 and 2027. Future dates remain subject to parliamentary processes and may change.
Need External Support to Navigate the Changes?
With multiple employment law changes being introduced, preparing early can help reduce legal risks and give managers greater confidence when dealing with workplace issues. At EML, our HR and employment law consultants can help you understand what these changes mean for your organisation and the practical steps you need to take. From reviewing policies and procedures to supporting managers with individual employee issues, we provide practical, commercially focused advice, tailored to your organisation.
If youโre unsure whether your HR policies and procedures are ready for the latest round of employment law changes, contact EML on 01942 727200 or email enquiries@employeemanagement.co.uk to arrange a no-obligation conversation with one of our experienced consultants.
