Receiving Royal Assent on 18 December 2025, one of the government’s flagship policies is set to cause the biggest overhaul of employee rights in a decade, coming into effect over the next two years (2026 and 2027).
The Employment Rights Act 2025 introduces sweeping amendments to existing legislation, including the Employment Rights Act 1996. It is now crucial that employers follow these new rules or risk falling short of the law.
• Jump to changes in April 2026.
• Jump to changes in October 2026.
• Jump to changes in December 2026.
• Jump to changes in 2027.
Please note: Most of the changes within the Employment Rights Act 2025 have not yet come into effect. This guide is subject to change as new details emerge.
“The go-to solicitor for serious accident-at-work and disease cases” – The UK Legal 500.
“Sarah Peacock dealt with my case very well. She kept me informed with everything going on, and I got my compensation quicker than I thought it would take.” – Marie, N.
“Sarah Watson dealt with my claim from start to finish in a professional but caring and understanding manner. She offered expert advice throughout.” – Kelly, W.
“Excellent service from Vicki Wanless about a claim for asbestosis. Her advice was clear, concise and robust.” – Graham, F.
Read our full list of testimonials
Immediate changes for 2026
Minimum service level rules for strikes were removed on 18 December 2025.
These rules were introduced in previous legislation to require a minimum number of staff to remain on duty during industrial action.
Changes to expect in early 2026
Within the first four months of 2026, we can expect the first legal changes to come into effect. These range from changes to strike action, expanded Statutory Sick Pay protections and family leave rights.
Early industrial action protections
On 18 February 2026, a suite of changes relating to industrial action and trade union procedures are scheduled to take effect, including:
• Dismissal for taking part in industrial action will be automatically unfair removing the current 12-week limit for claim
• Reducing the notice period for industrial action ballots to 10 days
• Allowing unions to take industrial action based on a simple majority vote
• Removing the requirement for picket supervisors at industrial action sites
• Extending the duration of industrial action mandates from six to 12 months
• Simplifying ballot and notice procedures for industrial action.
Reforms to Statutory Sick Pay (SSP)
From 6 April 2026, Statutory Sick Pay reforms will come into law, expanding protection for those who cannot work due to illness. These changes include:
• Removal of the three-day wait period: SSP will now be paid from the first day of illness, not the fourth.
• Abolition of the lower-earnings limit: More lower-paid workers will now qualify for SSP than before.
Improved protections against workplace harassment
From 6 April 2026, workers who report sexual harassment will have their complaints classified as qualifying disclosures under whistleblowing law.
In simple terms, this means that employees who report sexual harassment will have protection from detriment and unfair dismissal at work.
Changes to collective redundancy consultations
On 6 April 2026, the maximum award for failing to consult on collective redundancy and restructuring will increase from 90 days’ pay to 180 days’ pay.
This discourages rushed collective redundancy measures and further compensates those who would be affected.
Strengthened family leave rights
On 6 April 2026, employers will need to update their family leave policies to reflect that certain parental rights are available from the first day of employment.
The updated rights include:
• Day-one paternity leave: Previously, this carried a 26-week service requirement.
• Day-one parental leave: Previously, this carried a one-year service requirement.
• Removal of paternity leave restrictions: Previously, paternity leave was not permitted if shared parental leave had already been taken.
Introduction of the Fair Work Agency
From April 2026, employee rights enforcement bodies will be unified, in an effort to simplify the enforcement of workers’ rights.
Employers need to be aware that they will deal with enforcement agents through a new centralised body.
Employment Rights Act changes from October 2026
While most of these new rules are subject to change following government consultations, there are a number of currently planned changes that we can expect to see come about towards the end of 2026.
Protections against ‘fire and rehire’
The process of firing and rehiring – when someone is let go and then reemployed on a worse contract of employment – will automatically be classified as an unfair dismissal from October 2026.
Protections from harassment at work
As of October 2026, employers will be required to explicitly consider workplace harassment and discrimination risks in policies and training. They will also be liable for harassment of staff from third parties.
In other words, employers must now take ‘all reasonable steps’ to prevent workplace harassment, as well as harassment from clients, customers and other third parties.
Further changes in 2027 will set out in law what employers are expected to do to meet the ‘reasonable steps’ test when preventing sexual harassment.
Employment tribunal time limits to increase
Currently, the time limit to make a claim for an employment tribunal is three months. From October 2026, this is expected to increase to six months.
Trade union and strike protections to strengthen
Employers will now be expected to inform their workers of the right to join a trade union, should they wish.
This change is to come alongside others, including the right to time off for union equality representatives, so that they can carry out their duties, as well as further updates to rules on trade unions’ right of access to the workplace.
Should an employee take part in strike action, they can no longer be treated less favourably by their employer in addition to being protected against unfair dismissal.
Tipping rules to change
For businesses in the tipping sector, employers must consult with workers or representatives before a tipping policy is put in place on their behalf. This policy must then be updated every three years.
Employment Rights Act changes from December 2026
While only one change is happening in December 2026, it’s an important one for the fishing industry.
Update to the Mandatory Seafarer’s Charter
A new mandatory charter for seafarers will be introduced in late 2026, with the main changes focusing on health and safety, pay, strengthened job security and legislated rest breaks.
Employment Rights Act changes expected in 2027
Most of these changes have not been given an exact date of implementation, especially as, in most cases, the nature of these changes will be executed as a result of government consultations.
Expanded regulation of umbrella companies
From 2027, umbrella companies will be brought within the legal definition of employment agencies. This expansion will allow regulators to take enforcement action where necessary.
Unfair dismissal at work
In January 2027, protection from unfair dismissal will become a right after six months of employment at your workplace. Currently, this protection is only given to those who have worked for a minimum of two years.
Improved maternity and pregnancy rights
From 2027, the Act will significantly tighten the rules around dismissing employees who are pregnant or returning to work after maternity leave.
These changes are designed to offer greater security during both pregnancy and the transition period once the employee returns to work.
Introduction of statutory bereavement leave
A new statutory entitlement to bereavement leave is due to be introduced in 2027. Details on whether this leave will be paid have not yet been confirmed.
Guaranteed hours for ‘zero-hours’ workers
Workers engaged on zero-hours contracts will be able to request guaranteed working hours if they wish. This reform, expected in 2027, aims to provide greater certainty and income stability.
Compensation when shifts are changed or cancelled
Under new rules planned for 2027, workers will be entitled to payment if their employer cancels a shift, moves it to another date, or shortens the scheduled hours with unreasonable notice.
Flexible working: new duties for employers
Flexible working law will be updated in 2027, placing additional obligations on employers who refuse a request. Where a request is declined for genuine business reasons, employers will now need to:
• Clearly outline the business grounds for refusal
• Justify why those grounds make the decision reasonable.
Menopause and gender pay gap action plans
Action plans addressing menopause support and gender pay gaps will become compulsory in 2027.
Further collective redundancy changes
New collective redundancy requirements will come into force in 2027, including:
• Assessing proposed redundancies across the whole organisation, rather than limiting calculations to individual sites
• Enhanced redundancy protections for seafarers working on ships that regularly use British ports but are registered outside Great Britain.
Trade union reform
Several trade union changes will take effect in 2027, including:
• Wider legal protections for trade union members against discrimination and blacklisting
• The introduction of a new industrial relations framework to support more effective collaboration between employers and trade unions.
Need help preparing your business for the coming changes?
Navigating the upcoming employment law reforms can be complex. Beecham Peacock can guide you through each change, helping your business stay compliant and minimise risk.
Get in touch today to discuss how these updates could affect your workplace and the steps you should take to prepare.
Last updated: January 2026.
