As we move into 2026, UK employers face one of the most significant periods of employment law reform in over a decade. With the Employment Rights Act now passed following amendments from the House of Lords, several major legislative changes are set to reshape workplace rights over the next two years. These updates will affect policies, contracts, procedures, and HR practices across all sectors.

This guide summarises the most important changes and highlights the actions employers need to take to remain fully compliant.

Key Actions for Employers in Early 2026

  • Update sick pay policy to reflect SSP from day one and removal of the lower earnings limit.
  • Remove qualifying periods for paternity and parental leave within relevant policies.
  • Prepare updated policies for whistleblowing, sexual harassment, and third‑party harassment.
  • Introduce compulsory sexual harassment training for all employees in 2026.
  • Adjust contracts to apply a standard six‑month probation period, with review at least one week before probation ends.

Changes Effective From April 2026

1. Day‑One Rights for Paternity and Parental Leave

The minimum service requirements will be removed, giving all employees immediate eligibility for paternity and unpaid parental leave. Pay rules for paternity leave remain unchanged.

2. Statutory Sick Pay Reform

  • SSP will be payable from the first day of sickness absence.
  • The lower earnings limit (£123 per week) will be abolished.

3. Whistleblowing Protections Expanded

Disclosures regarding sexual harassment will now fall under whistleblowing legislation, offering additional protection from detriment and preventing the use of settlement agreements to silence disclosures.

Changes Effective From October 2026

1. Restrictions on Fire‑and‑Rehire Practices

Dismissing employees for refusing contractual changes will be automatically unfair unless employers can prove severe financial hardship and lack of alternatives.

2. “All Reasonable Steps” Duty to Prevent Sexual Harassment

  • Regular, meaningful anti‑harassment training
  • Clear reporting channels
  • Risk assessments for high‑risk situations
  • Zero‑tolerance policy adoption

3. Duty to Prevent Third‑Party Harassment

Employers will be required to protect employees from harassment by customers, suppliers, and other external parties.

4. Tribunal Time Limits Extended

The limit for bringing unfair dismissal and discrimination claims will increase from three months to six months.

Changes Effective From January 2027

1. Unfair Dismissal Eligibility Reduced to Six Months

From 1 January 2027, employees will need only six months’ service to claim unfair dismissal. Compensation caps will also be removed. These changes apply only to employees starting on or after this date.

2. Guaranteed Hours for Zero‑Hour, Low‑Hour, and Agency Workers

Employers must offer guaranteed-hours contracts to workers who regularly work consistent hours over a reference period (likely 12 weeks).

3. New Rules on Shift Notice and Cancellation

Workers will gain rights to reasonable notice and compensation for short‑notice cancellations or changes.

4. Introduction of Statutory Unpaid Bereavement Leave

A new day‑one right providing at least one week of unpaid bereavement leave, covering a wider range of relationships and including miscarriage before 24 weeks.

5. Collective Redundancy Consultation Threshold Changes

The 20‑employee threshold will apply across the whole business instead of per establishment, increasing the likelihood of triggering consultation obligations.