Recent and upcoming changes to employment law you need to know

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

In December 2025, the Strikes (Minimum Service Levels) Act 2023 was repealed.

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.

• Other changes included updates to the Enterprise Management Incentive (EMI) scheme, which expanded eligibility limits and made 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 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
  • Right to Work requirements will be extended to cover wider working arrangements including some workers, subcontractors, online matching services and situations involving labour substitution.
  • 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.
  • Enhanced enforcement powers and updated guidance on the fair distribution of tips

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.

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