As we move into 2026, the employment landscape continues to shift at pace. The biggest driver this quarter is the Employment Rights Act 2025, which has now started to take effect and is bringing meaningful changes for employers across the UK.
In this update, we focus on what the new legislation means in practice and how it affects day-to-day people management, policies and risk. From enhanced worker protections to changes around contracts, flexibility and enforcement, many organisations will need to review how they operate to stay compliant.
Our aim below is to cut through the noise and highlight the key points employers should be aware of now, where action may be required, and what to keep an eye on as further guidance develops through 2026.
The Employment Rights Act 2025
The Employment Rights Bill which has been debated so heavily since the Labour Government came into power, finally gained Royal Assent and became The Employment Rights Act 2025, in December 2025.
A number of changes will take place in April and October of 2026, with further changes to come in 2027, many of which are subject to further consultations this year, with the final outcomes and implementation dates for those further areas of change to be confirmed as we move forward.
One change took place as soon as the Bill became law in relation to cases of strike action, the rules around ‘minimum service levels’ were removed on 18 December 2025. These rules were about keeping essential services running such as NHS when there’s a strike.
There are a huge number of changes which this Act will bring to the regulations governing UK employment. This update will concentrate on providing a high level overview of the areas of change which are confirmed and have a 2026 implementation date, along with recommended actions for employers to take now to be ready for those changes.
In order to ensure you remain compliant, please note the following:
Effective from 18 February 2026
| Change | Requirement | Recommended Actions |
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Change to qualifying service required to protection against dismissal for taking part in industrial action |
Effective from 18 February 2026, the current requirement to have a minimum 12 weeks’ service to claim unfair dismissal if dismissed for taking part in industrial action will be removed and this reason for dismissal will be added to those which are ‘automatically unfair’.
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Ensure Managers are provided with appropriate awareness training regarding the wide ranging changes relating to Unions as a result of the ERA 2025. |
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There are a raft of changes in relation to Unions, including the notice period and voting requirements for industrial action. For further information about Union changes please get in touch. |
The notice time required for industrial action will reduce from 14 days to 10 days, with the information which the Union must include within the notice, also being reduced. In addition going forward, Unions will only require more votes in support of industrial action than against i.e. a simple majority.
The requirement to appoint a picketing supervisor which currently applies, will no longer apply to picketing taking place on or after 18 February 2026.
For industrial action commenced by an employee on or after 18 February 2026, enhanced protections will apply in the form of dismissal for their participation being automatically unfair.
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As above |
Effective from 6 April 2026
| Change | Requirement | Recommended Actions |
| Paternity leave from day one of employment.
Prevention of taking paternity leave after a period of Shared Parental Leave removed |
The qualifying service of 26 weeks which is currently required in order for the partner of the pregnant person/main adopter to take paternity leave, will be removed for children with an Expected Week of Childbirth (EWC) on or after 5 April 2026, or who are born or placed for adoption on or after 6 April 2026.
Going forward, from day one of employment an individual can give notice of intention to take paternity leave (26 week qualifying period for paternity pay remains in place)
The previous prevention of taking paternity leave after a period of Shared Parental Leave will be removed. The changes allow for notice to be given from 18 February 2026, however, paternity leave and unpaid parental leave cannot be taken by newly eligible parents before 6 April 2026 (reduced notice of 28 days allowed during the transition period).
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Update policies and train managers about the changes. |
| Parental leave from day one of employment | The qualifying service of 1 year which is currently required in order to exercise the right to take unpaid statutory parental leave will be removed, and from day one of employment an individual will become eligible to take this leave type.
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Update policies and train managers about the changes. |
| Removal of 3 day waiting period for Statutory Sick Pay (SSP).
Removal of Lower Earnings Limit (LEL) requirements. |
SSP will be payable from the first day of illness as the current 3 day waiting period which results in SSP only being paid from the 4th day of a sickness will be removed.
The current LEL set by government and which workers must reach in order to be eligible for SSP, will be removed, meaning all workers of any income will be eligible for SSP.
SSP will be paid at a flat rate (rising to £123.25 per week) or 80% of normal weekly earnings, whichever is lower.
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Update contract templates, policies and processes and train managers about the changes.
Ensure that payroll practices reflect the changes. |
| Increase to protective award in collective redundancy | Currently, where an employer fails to consult in collective redundancy situations, the protective award maximum is 90 days’ pay, this will increase to 180 days’ pay.
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Review policies and ensure managers are aware of collective consultation requirements. |
| Sexual harassment | Currently no qualifying service is required to make a claim for unfair dismissal where the reason is ‘automatically unfair’. This includes qualifying protected disclosures under whistleblowing. Sexual harassment will now be included as a protected disclosure.
Failure to take reasonable steps (and from October 2026 all reasonable steps) to prevent sexual harassment can lead to consequences including investigation by the Equality & Human Rights Commission (EHRC) and the increase of any tribunal award of up to 25%
The requirement to take ALL reasonable steps will include this requirement in respect of 3rd parties in relation to ANY type of harassment of their workforce, not simply sexual harassment. |
Review and update policies on sexual harassment and conduct and behaviour.
Review and update risk assessments and share with all workers.
Review and update contract terms and conditions with 3rd party providers to ensure the relevant clauses are included regarding expectations for prevention of harassment.
Review procedures and risk assessments for external events and activities where employees may be exposed to 3rd parties either in person or by phone or any type of written contact.
Ensure refresher training is scheduled for all staff including specific training for managers.
Consider the further changes upcoming in October 2026 as noted below, it is recommended that the review and update actions as well as training/refresher training take into account the October change. |
| Gender pay gap and menopause action plans | Since 2017, under the Equality Act 2010, large employers with 250 or more employees have been required to publish annual Gender Pay Gap data on their own website as well as the government’s gender pay gap portal.
From April 2026 large employers are encouraged, on a voluntary basis, to detail the actions they are taking to improve gender equality and to provide support to employees who are going through the menopause. This will become a mandatory requirement from 2027.
Employers who outsource employees will be held accountable for any gender pay gaps.
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If you are a large employer (where a minimum of two of the following apply: the business has an annual turnover exceeding £15m; the business has a balance sheet total of more than £7.5m; the business had an average of over 50 employees for the business’ financial year), start to put together a team who can review the requirements and work to produce the necessary information and implement identified actions. |
| Trade Union recognition process simplified and electronic voting allowed. | From April 2026 there will no longer be a requirement for 50% of a workforce to turnout for a ballot on taking industrial action. | Ensure there is awareness of the changes within the business. |
Effective for individuals employed from 1 July 2026
| Change | Requirement | Recommended Actions |
| Unfair dismissal
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Despite the governments push to provide day one right to protection from unfair dismissal, from January 2027, the qualifying service individuals will require to claim ordinary unfair dismissal, will reduce from 2 years to 6 months. Therefore, those employed from 1st July 2026 forward, would be able to claim ordinary unfair dismissal effective from 1st January 2026.
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Review recruitment policies and practices, review or implement probation policies and processes, review or implement performance management processes.
Roll out training in the requirements of these procedures, including the essential documentation, to all line managers. |
Effective from October 2026
| Change | Requirement | Recommended Actions |
| Trade Union Right of Access | New rules on a Trade Union’s right of access to workplaces (physical and/or digital), in order to meet, support, represent, recruit or organise workers or to facilitate collective bargaining (not for organising industrial action), will come into force in October 2026.
Also coming into force from October will be:
Some consultations regarding changes affecting Trade Unions remain open and you can take part until 17 March 2026 Acas consultation about trade union duties and activities.
A Code of Practice on Trade union Right of Access will be published and provide details of requirements for the Trade Unions and Employers.
The timescales the government consulted on, included Trade unions only being required to provide 5 working days notice of a request for access and only 15 days for negotiating the terms of an agreement.
There will also be fines for non compliance, proposed to be £75,000 for an initial breach and up to £150,000 for repeated breaches.
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Ensure all Managers are aware of the upcoming changes and know who to elevate any Trade Union contact to. There may be an opportunity to agree voluntary recognition in advance of the changes if a Union makes contact in advance of the changes.
If it would not be your preference to have Trade Unions recognised by the business, consider the introduction of Employee Forums to create a transparent communication with the workforce which may reduce the desire from employees for any future Trade Union recognition. |
| Sexual Harassment | The legal requirement for employers to take reasonable action to prevent sexual harassment has been in place since October 2024, from October 2026 this will change to employers being required to take ALL reasonable action to prevent sexual harassment.
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See above recommendations under April 2026 Sexual Harassment changes.
Ensure refresher training for all staff including specific training for managers about the changes. |
| Harassment | From October 2026 employers who have not taken ALL reasonable steps to prevent any type of harassment to their workers, by third parties such as customers or members of the public they may be exposed to as part of their role, or attending a work conference etc., will be liable in relation to that harassment.
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Review what reasonable steps the organisation already takes to prevent any type of harassment of workers by third parties and assess what additional measures could be taken under the requirement to take ALL reasonable steps.
This includes harassment for any reason including age, disability, race etc., not just sexual harassment.
Revise policies, processes and risk assessments in conjunction with employees, communicate the outcomes and take additional actions identified. |
| Non-Disclosure Agreements | Non-Disclosure Agreements (including Confidentiality Clauses, Settlement Agreements and COT3’s prepared by ACAS) will become void under the ERA 2025, if they prevent allegations or disclosures about harassment or any form of discrimination. There is no confirmed date for this to become effective as yet.
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Ensure all Managers are aware of this upcoming change in conjunction with the suggested training noted in previous sections of this update. |
| Employment tribunal time limits
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Time limits for an employee to raise a claim to an employment tribunal will increase from 3 months from final date of employment or incident, to 6 months for all claims.
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Ensure all Managers are aware of the upcoming changes |
| Increased protection against detriment for industrial action
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Further protection for workers taking part in industrial action will come into place from October 2026 when such workers will be protected against detriment (i.e. being treated less favourably), in addition to the current protection against unfair dismissal.
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Ensure all Managers are aware of the upcoming changes |
| Dismissal and re-hire
Implementation date not yet confirmed |
Where a Company proposes changes to terms and conditions which are detrimental and individuals do not agree to the changes following consultation, it has long been the practice to give notice that the current terms will end and the individual will be offered employment on the new terms. Employees are typically advised that they will be considered to have resigned if they do not accept the new terms. The terminology the government use for this is ‘fire and ‘re-hire’, and this was timetabled to become an automatically unfair reason for dismissal in most cases, from October 2026. However on 4 February 2026 the government has advised further consultation is required and that a date in 2027 will then be advised.
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General awareness.
The government consultation on proposed changes to fire and rehire protections in relation to benefits and expenses, and to shift patterns closes at |
Many of the changes make the active management of individuals, with timely feedback and documentation of all matters, even more important than they already are.
Additional Scottish Bank Holiday
In addition to the information in the update regarding employment law changes in 2026 as a result of the Employment Rights Act 2025, for businesses based in Scotland, it’s recommended they consider whether they plan to give their employees the additional Scottish bank holiday on Monday 15th June 2026 (confirmed by the Scottish Government on 5th February 2026).
Whether or not you are obliged to provide this additional day as an extra day of paid leave will depend on the wording regarding holidays in employment contracts. However, it is recommended that even if you are not obliged to provide the additional date, you make a decision and proactively communicate it. This will reduce the time people will spend wondering about this and talking about it between themselves, as well as different managers being approached and the potential for incorrect information to be given.
If you require advice or support in relation to the matters raised in this update, including recommended actions, please contact your Hunter Adams focal point.
