Welcome to your December Edition of The HR Team Newsletter, where we bring you timely updates, practical advice, and strategic guidance to help you support your people and protect your business.
Employment Law Changes – What to Expect in 2026
The Employment Rights Act received Royal Assent on 18th December 2025, marking the most significant shift in UK employment law in over a decade. While some reforms will not take effect until 2027, the majority of changes begin in April and October 2026.
This article summarises the key developments and outlines the practical steps employers should take now to prepare.
Changes Effective from April 2026
Day-One Rights to Paternity & Parental Leave
Employees will gain immediate eligibility for both paternity and parental leave.
Implications for employers:
- Update family leave policies and onboarding materials.
- Prepare for increased short notice leave requests.
- Ensure managers understand eligibility and discrimination risks.
Increased Protective Award for Collective Redundancy
The maximum protective award for failing to consult on collective redundancies increases from 90 to 180 days’ pay.
Implications:
- Higher financial exposure during restructures.
- Early planning and robust consultation processes are essential.
Establishment of the Fair Work Agency (FWA)
A new enforcement body will consolidate several regulators and gain additional powers, including enforcing holiday pay rights.
Implications:
- Expect more proactive compliance checks.
- Accurate record-keeping becomes critical, especially around pay and working time.
Statutory Sick Pay (SSP) Reform
Key changes include:
- Removal of the lower earnings limit.
- SSP set at £118.65 or 80% of weekly salary (whichever is lower).
- SSP payable from day one of sickness.
- Review sickness absence processes, documentation, and return-to-work practices.
- Assess cost implications for your workforce.
- Sexual harassment becomes a qualifying disclosure under whistleblowing law.
- NDAs restricting reporting of harassment or discrimination will be prohibited.
- Update whistleblowing, grievance, and settlement agreement templates.
- Train managers on handling disclosures appropriately.
Minimum Wage & Statutory Rate Increases
From April 2026:
- 18–20-year-olds: £10.85
- 16–17-year-olds & apprentices: £8.00
- National Living Wage (21+): £12.71
- Review pay structures and budget for increases.
- Check for compression issues between grades.
Expanded Trade Union Rights
Reforms include simplified ballot requirements, reduced notice periods, and electronic balloting. Implications:
- Increased likelihood of industrial action in unionised sectors.
- Review employee relations strategies and communication plans.
Changes Effective from October 2026
Ban on Fire and Rehire
It becomes automatically unfair to dismiss an employee for refusing a “restricted variation” (e.g., reduced pay, hours, or leave), except in cases of genuine financial distress.
Implications:
- Review contracts and plan any organisational changes early.
- Ensure consultation processes are thorough and well-documented.
Strengthened Duty to Prevent Sexual Harassment
Employers must take all reasonable steps to prevent sexual harassment, including by third parties.
Implications:
- Review risk assessments, training, reporting routes, and culture.
- Expect further guidance in 2027.
Additional Trade Union Access Rights
Employers must:
- Provide written statements informing workers of their right to join a union.
- Allow greater access to facilities and paid time for union duties.
- Increased union presence and potential for collective bargaining activity.
- Update induction materials and internal policies.
Tipping Policy Requirements
Employers must consult workers before creating or updating tipping policies and provide anonymised summaries of feedback.
Implications:
- Hospitality and service sectors should prepare for more structured consultation processes.
Tribunal Time Limits Extended
Employees will have six months (instead of three) to bring most tribunal claims.
Implications:
- Longer exposure period for potential claims.
- Maintain thorough documentation and case management records.
Changes Coming in 2027
- Six-month qualifying period for unfair dismissal.
- Right to guaranteed hours for workers.
Recommended Actions for Employers
Immediate (Next 1–3 Months)
- Audit policies: family leave, whistleblowing, NDAs, sickness absence, union relations.
- Review contracts for potential “restricted variations”.
- Begin budgeting for wage increases.
- Train managers on new rights and processes.
- Strengthen record-keeping and compliance systems.
- Review organisational change plans in light of the new protective award and fire-and-rehire ban.
- Prepare for enhanced sexual harassment duties.
- Monitor union activity and update engagement strategies.
- Plan for 2027 reforms.
Need Support? The HR Team are here to help
The Employment Rights Act introduces wide‑ranging changes that will require careful planning, updated documentation, and confident manager capability.
If you would like tailored guidance, policy updates, training for your managers, or support navigating any of the reforms, contact The HR Team. Please get in touch with us for practical, expert advice on preparing your organisation for the changes ahead.
