Organisations across the UK are being urged to accelerate their preparation for a raft of employment law changes that will fundamentally alter workplace rights and protections throughout 2026.
Following Royal Assent of the Employment Rights Act 2025, which concluded its passage through Parliament in December after months of intensive scrutiny and amendment, businesses now face what employment specialists are calling the most substantial reshaping of workplace legislation in over a decade.
Kathryn Gilbert, Head of HR Services at Bhayani HR & Employment Law, and Lorna Thorley, HR Advisor at the firm, have highlighted the need for immediate action despite secondary legislation still being developed to establish detailed operational procedures.
Among the most significant changes, the qualifying period for ordinary unfair dismissal claims will be slashed from two years to just six months. This dramatic reduction will expose employment decisions made during the early stages of someone’s tenure to far greater legal scrutiny.
The statutory compensation cap for such claims is also set to be removed, subject to impact assessment, whilst automatic unfair dismissal protections covering whistleblowing, discrimination and pregnancy will continue to apply from day one of employment.
Thorley warns that the implications are substantial. “Poorly documented probationary dismissals will carry significantly higher risk, meaning employers will need to strengthen early-performance processes, train managers on fair decision-making and ensure dismissal decisions are evidence-based and procedurally sound.”
Meanwhile, Statutory Sick Pay arrangements will undergo their most significant transformation in years when changes take effect in April 2026. The existing three-day waiting period will be abolished entirely, meaning SSP becomes payable from the first day of sickness absence. Additionally, the lower earnings threshold that currently excludes many lower-paid workers will be removed.
Gilbert emphasises that these changes will make employment status classifications increasingly critical. “Employment status will therefore become even more important. Where individuals work on a genuinely casual basis, SSP may not apply. However, individuals who work regular or guaranteed hours are likely to qualify, regardless of labels such as ‘zero-hours’ or ‘casual’. Employers should review contracts and working arrangements to ensure they reflect the reality of the working relationship, as labels alone will not determine entitlement.”
Parental rights will also be enhanced under the new legislation. Both Statutory Paternity Leave and Unpaid Parental Leave will become day-one entitlements, with the continuity of service requirement scrapped. However, employers should note that Statutory Paternity Pay will still require 26 weeks of continuous employment.
Thorley explains the practical implications: “Unpaid parental leave allows parents to take up to 18 weeks’ leave per child, capped at four weeks per year, and may be used, for example, as an alternative to annual leave during school holidays.”
Enforcement capabilities are being substantially strengthened through the establishment of the Fair Work Agency. This new body will have powers to pursue SSP and holiday pay underpayments on behalf of workers who are either unwilling or unable to bring claims themselves. Significantly, the Agency will be able to recover up to six years of unpaid entitlements.
Gilbert’s advice is unequivocal: “We strongly advise employers to prepare their businesses now and ensure compliance, rather than risk costly claims and financial penalties.”
Sexual harassment protections, which were already enhanced in October 2024 when employers became legally obliged to take reasonable steps to prevent such conduct, will be further reinforced from April 2026. At that point, sexual harassment complaints will attract whistleblowing protection, substantially increasing the legal consequences of inadequate responses.
According to Gilbert, businesses that have delayed action face mounting risks. “Employers that have not yet considered what steps they need to take to prevent sexual harassment, or that lack robust whistleblowing, disciplinary and grievance policies, risk significant legal exposure.”
Trade union activity provisions represent another area of substantial change. From February 2026, the landscape for industrial action will shift considerably, with notice periods shortened, voting thresholds lowered, strike mandates extended to 12 months, and dismissal for lawful industrial action becoming automatically unfair.
Gilbert notes the potential for increased union engagement: “Changes taking effect from February 2026 will reduce notice periods for industrial action, lower voting thresholds, extend mandates to 12 months and make dismissal for lawful industrial action automatically unfair.”
She adds: “Lower thresholds and longer mandates may encourage increased union activity in sectors that have traditionally seen limited engagement.”
The recommendation is for proactive management: “Employers should consider whether consultation and communication channels are effective and ensure managers are appropriately trained to handle collective concerns before they escalate.”
Whilst detailed implementation guidance through secondary legislation is expected throughout 2026, employment law specialists stress that the fundamental direction is now established. Organisations that wait for complete regulatory clarity before taking action may find themselves struggling to implement necessary changes before various provisions take effect.
The staggered implementation timeline, with different elements coming into force in February and April 2026, adds complexity to preparation efforts. Businesses are being advised to conduct comprehensive reviews of existing policies, contracts and procedures, whilst investing in manager training to ensure those making employment decisions understand the heightened standards they will need to meet.
For many employers, the combined effect of these reforms represents not just a compliance challenge but a fundamental shift in the employment relationship, requiring cultural as well as procedural adjustments across their organisations.
