This year marks a major shift in the employment law landscape with many significant reforms coming into force under the Employment Rights Act 2025. These changes will no doubt bring major implications for employers. Here’s our quick guide of what’s changing and when, and what action employers should take to prepare.
FEBRUARY 2026
Trade Unions
Minimum service level rules for strikes in certain essential sectors such as education, health and transport were removed on 18 December 2025. New rules on trade union activity will be introduced which include:
- Notice of industrial action will reduce to 10 days
- Simple majority vote for industrial action
- Picket supervisors will no longer be required
- Industrial action mandates will last for 12 months
- Simplified industrial action and ballot notices
- Protection against unfair dismissal for taking industrial action will be extended from the first 12 weeks of such action to the full duration of the action.
APRIL 2026
Statutory Sick Pay (SSP)
SSP will be payable from day-one of employment and the 3-day waiting period will be removed. The lower earnings limit (LEL) will also be removed extending SSP to low-paid workers.
Family-Related Leave
The qualifying period for paternity leave and unpaid parental leave will be removed to provide access to these entitlements from day-one of employment.
Collective Redundancy & Protective Awards
The maximum protective award for failing to comply with statutory collective consultation requirements relating to large scale redundancy/reorganisation exercises will double from 90 to 180 days’ pay per affected employee.
Harassment & Whistleblowing
New legislation will make a report of sexual harassment an instance of whistleblowing and therefore NDA’s will effectively not be an option.
Statutory Pay Rates
Statutory pay rates will increase as part of the annual uplifts as follows:
- National Living Wage will increase to £12.71 per hour (21+)
- National Minimum Wage will increase to £10.85 per hour (18-20) / £8.00 per hour (16-17)
- Apprentice rates will increase to £8.00 per hour
- Statutory maternity/paternity/shared parental/adoption/parental bereavement pay will increase to £194.32
- Statutory sick pay will increase to £123.25
Fair Work Agency
Launch of a new enforcement body to strengthen key statutory employment rights such as minimum wage, holiday pay and statutory sick pay.
Trade Unions
A simplified statutory recognition process and electronic balloting will be introduced.
OCTOBER 2026
Allocation of Tips
Further rules to strengthen existing legislation surrounding the Employment (Allocation of Tips) Act 2023 will be introduced including staff consultation requirements and reviewing policies every 3 years.
Fire and Rehire
The practice of dismissal and rehiring on less favourable terms will be restricted, except in limited circumstances, and will become an unfair dismissal in most cases. A consultation exercise in relation to this change is due to be initiated.
Sexual Harassment
The employer’s duty to take ‘reasonable steps’ to prevent sexual harassment in the workplace will be extended to ‘all reasonable steps’ and will also include a duty to prevent sexual harassment by third parties (e.g., clients, suppliers).
Extended Tribunal Time Limits
Employees will have up to six months (currently 3 months) to bring a claim in the Employment Tribunal. With claim backlogs already significantly high, this could potentially lead to a rise in claims with longer uncertainty and evidence retention issues for employers.
Trade Unions
There will be further changes to trade union rights as follows:
- New employer duty to inform workers of their right to join a union
- Updated rules on a trade union’s right of access to the workplace
- New right to reasonable accommodation and facilities for trade union representatives carrying out their duties
- New right to time off for union equality representatives to carry out their duties
- Detriment protection for workers taking part in industrial action
Action for Employers
To successfully navigate these changes, it is crucial for employers to:
- Review and update contracts, handbooks and HR policies
- Ensure managers are fully trained and up to speed with the changes
- Review redundancy and restructuring processes
Final Thoughts
There’s no denying 2026 will bring some of the most significant employment law reforms we have seen in the last 20 years. However, careful preparation will help minimise any risks.
If you require additional support navigating these changes, or you would simply like to ensure your HR practices are up to date, get in touch on 01942 727200 or at enquiries@employeemanagement.co.uk to see how we can help.