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Employment Rights And Your Business

See What’s Changing in 2026.

Andrew Collier
Andrew Collier HR Adviser
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Shortly before Christmas, the Employment Rights Bill passed into law. It’s now become the Employment Rights Act 2025 and will have a major impact on every UK employer. 

The Act introduces significant and wide-ranging changes. So what can you expect this year?

Last July, the government introduced a roadmap to indicate when changes will happen. Many of the regulations require consultation before they come into force, including on flexible working, guaranteed hours, and regulation of tips. 

A number of consultations have already fallen behind due to the time it took to pass the Bill into law, but here’s the expected timeline for changes coming into force in 2026.

Already in force:

  • Repeal of rules around minimum service levels during strike action.

17 February 2026:

  • Various other trade union changes, including simplifying industrial action and ballot notices. Protections against dismissal for taking industrial action.

6 April 2026:

  • Day 1 right for Statutory Sick Pay, payable from the first day of sickness. The lower earnings limit for SSP eligibility will also be removed. 
  • Day 1 right for paternity leave and unpaid parental leave. Paternity leave will also be permitted to be taken after shared parental leave, rather than requiring it to be taken first or be lost.
  • Sexual harassment disclosure can count as whistleblowing, meaning individuals who raise concerns gain protection from detriment and unfair dismissal. 
  • Doubling of the maximum protective award for failure to follow collective redundancy rules - increasing from 90 to 180 days’ pay.
  • Electronic balloting for industrial action. 
  • Fair Work Agency to be set up - in time this agency will take over certain enforcement functions including for: minimum wage, employment agencies rules, and for holiday pay and statutory sick pay with new powers to be able to charge higher penalties for not paying correct amounts.
  • Equality Action plans re gender pay gap and supporting employees through menopause.
  • Trade Unions: simplifying the trade union recognition process. Electronic and workplace balloting.

1 July 2026:

  • Six months until a six-month qualifying period for protection from unfair dismissal is expected to come into force.

October 2026:

  • Further limits on fire and rehire - these will significantly reduce an employer’s ability to use this method to change terms. Most forms of fire and rehire will be treated as automatically fair dismissal. 
  • Increase in Employment tribunal time limits - to extend from three months to six months for all claims. 
  • Tipping laws tightened - including requiring employers to consult with workers or their representatives before introducing a tipping policy.
  • Requirement for employers to take all reasonable steps to prevent sexual harassment.
  • Requirement for employers to prevent third party harassment for employees, unless all reasonable steps are taken to prevent it.
  • Regulations to establish Fair Pay Agreement Adult Social Care Negotiating Body.
  • Trade Unions: new rights and protections for trade union representatives. Duty to inform workers of their right to join a trade union. Strengthening of trade unions’ rights of access to workplaces. Two-tier procurement code for outsourced public sector workers. Extending protections against detriments for taking industrial action.

With more complexity and potential risk surrounding your people management, keeping on top of ‘paperwork’ is crucial. WorkSmarter’s suite of online HR tools helps every customer stay compliant with changing legislation. 

We’re Here to Help

Get in touch, for expert, bespoke guidance and support with the upcoming changes to the new law, and the practical steps you need to take to get ahead in relation to your specific business. Contact Us.

This article has been prepared for general information only and does not constitute legal advice. It has been created based on information available in January 2026. Specific legal advice should be taken in any specific circumstance.


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