Recent and upcoming changes to employment law you need to know

The UK government has begun rolling out the Employment Rights Act 2025, with a phased implementation running through 2026 and 2027.

In February 2026, key trade union reforms came into force, including the repeal of most of the Trade Union Act 2016, simplified industrial action requirements, and stronger protections for employees taking part in lawful industrial action.

• Day one rights for parental leave were introduced, alongside new Bereaved Partner’s Paternity Leave.

• Voluntary menopause and gender equality action plans (early stage)

• Collective redundancy protective award was doubled from 90 to 180 days’ pay.

• Statutory Sick Pay reform – the Lower Earnings Limit and waiting period were removed.

• Fair Work Agency (FWA) was established to enforce employment rights.

• Whistleblowing protections were strengthened.

• Changes to the Enterprise Management Incentive (EMI) scheme came into effect, expanding eligibility limits and making the scheme available to some larger businesses previously excluded. Businesses operating EMI schemes will also need to retain records for longer.

New provisions under the Employment Rights Act will begin to take effect in stages:

• By 31 August 2026 – electronic and workplace balloting for statutory trade union ballots will be introduced, allowing digital and workplace voting methods for trade union ballots.

• October 2026 – further measures including:
  • A duty to inform workers of their right to join a trade union
  • Strengthened trade union access rights and recognition procedures
  • Stronger protections for trade union representatives
  • New requirements for employers to take all reasonable steps to prevent sexual harassment, including harassment by customers, clients and visitors
  • Enhanced enforcement powers and updated guidance on the fair distribution of tips

• Late 2026 – the time limit for bringing most Employment Tribunal claims will double from three months to six months. For breach of contract claims in Scotland, the change takes effect on 9 November 2026.

Employers will need to continue reviewing policies, training managers, and updating internal processes during this period.

From 1 January 2027:

• The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months.
• The cap on compensatory awards for successful unfair dismissal claims will be removed.
• New protections restricting fire and rehire practices will come into force. 
• Employees reaching six months' service will gain unfair dismissal protection much earlier than under the previous system.

Digital identity checks are expected to become mandatory for Right to Work checks by the end of the current Parliament.

Right to Work requirements are expected to be expanded to cover a wider range of labour arrangements, including some contractors, subcontractors and labour supply chains. Employers should review onboarding processes and monitor future guidance.

Further Employment Rights Act measures will continue to roll out, including:

• Day one unfair dismissal rights

• Rights to guaranteed hours and compensation for shift cancellations

• Expanded flexible working rights

• Mandatory action plans on gender equality and menopause support

• Strengthened pregnancy and maternity protections

• Bereavement leave rights, including pregnancy loss

• Regulation of umbrella companies

• Measures to prevent misuse of NDAs in harassment and discrimination cases