Employment Law in Transition: What Employers Need to Know in 2026
2026 is shaping up to be one of the most important years for employment law reform in decades. The Employment Rights Act 2025 has now become law, and a series of far-reaching changes are either already in force or being phased in throughout 2026 and 2027.
Whether you’re an HR professional, in-house counsel or a business owner, understanding these changes early is essential to staying compliant, managing risk and avoiding expensive tribunal claims.
The Employment Rights Act 2025: A New Era
The Employment Rights Act 2025 (ERA 2025) received Royal Assent in December 2025 and represents the biggest overhaul of UK employment law in a generation. The Act consolidates and updates many existing rights, with some provisions already live and many more due to take effect in phases this year and next.
Key features include:
- Reform of statutory rights (e.g., parental and sick pay).
- Stronger protections against unfair practices like fire-and-rehire.
- Modernisation of redundancy and consultation rights.
- New enforcement measures through a central body (the Fair Work Agency).
Phased Implementation: What’s Happening and When
The following is our simple guide to what’s happening, when.
Already in Force
Some early changes linked to industrial action and collective bargaining have already taken effect (from February 2026)
From 6 April 2026: Major Changes
Day-One Family-Friendly Rights
Employees will no longer need to serve a minimum period to qualify for paternity and unpaid parental leave; these are now “day-one” rights.
Check out our Latest blog for your guidance on the new parental rights coming in April. New Parental Leave Day-One Rights: What It Means for Working Parents in the UK – Thrive Law
Statutory Sick Pay (SSP) Reforms
SSP will be payable from the first day of sickness (removal of the waiting period), and eligibility is expanded so that low-income workers will qualify. Employers will need to update payroll processes.
Want to know more and to make sure you’re keeping up to date? Check out our latest blog, which dives into some more detail on the SSP Reforms coming. Statutory Sick Pay Changes in 2026: What Will It Cost Employers and How To Prepare – Thrive Law
Collective Redundancy Penalties Increase
If employers fail to consult properly on collective redundancies, the maximum protective award doubles from 90 days’ pay to 180 days’ pay per affected employee.
Whistleblowing and Harassment Protections Enhanced
Disclosures about sexual harassment are now clearly protected under whistleblowing law, meaning employers cannot contract out of such obligations or retaliate.
Fair Work Agency Launch
In April 2026, the new Fair Work Agency will begin operations, consolidating workplace enforcement functions across minimum wage, holiday pay, SSP and other rights.
Bereaved Partner’s Paternity Leave
Fathers/Partners can take up to 52 weeks of leave if the mother or primary adopter dies within the first year. This means Partners will now receive long-term protection and time off in extreme family circumstances. To understand your rights and to understand the next steps please take a look at our recent blog , A Compassionate Shift: Understanding the New Bereaved Partner’s Paternity Leave Rights in 2026 – Thrive Law
Trade Union Recognition
The process for unions to be formally recognised in the workplace is becoming simplified. These changes aim to give workers a better chance to gain union representation and for employers to be more aware of expectations within Trade Union Rights, therefore giving clarity to all.
Leave Records
There will be a requirement for employers to retain annual leave records for six years. In summary, employers must keep records that are adequate to show that the organisation has complied with the law in respect of annual leave and pay entitlements, night working and payment in lieu of leave on termination.
Later Changes — 2026 / 2027
Action plans on gender equality and supporting employees through the menopause (mandatory)
- What’s changing?
Large employers will be required to produce action plans addressing gender pay gaps and providing support for employees experiencing menopause. Want to find out more on how this can impact you and your business? Check out our latest blog Menopause Action Plans: Preparing for April’s Employment Law Changes – Thrive Law
Enhanced dismissal protections for pregnant women and new mothers
- What’s changing?
Stronger legal protections will prevent dismissal during pregnancy and for a period after returning from maternity leave
Specifying steps that are ‘reasonable’ to prevent sexual harassment
- What’s changing?
The law will clarify what counts as “reasonable steps” employers must take to prevent workplace sexual harassment.
Extending blacklisting protections
- What’s changing?
Protections will be expanded to prevent workers being treated unfairly or denied opportunities due to trade union involvement.
Industrial relations framework
- What’s changing?
Reforms will update trade union laws, including simplifying recognition processes and rules around industrial action.
Regulation of umbrella companies
- What’s changing?
New regulations will be introduced to better protect agency workers operating through umbrella companies.
Collective redundancy: Collective consultation threshold
- What’s changing?
Changes will be made to how thresholds for collective redundancy consultation are calculated, potentially increasing employer obligations.
Flexible working
- What’s changing?
Employees will have strengthened rights to request flexible working, with greater responsibility on employers to accommodate requests.
Bereavement leave including pregnancy loss
- What’s changing?
A new right to bereavement leave will include time off for pregnancy loss before 24 weeks.
Right to guaranteed hours + reasonable notice / short notice payments
- What’s changing?
Workers on variable or zero-hours contracts will gain rights to guaranteed hours, reasonable notice of shifts, and compensation for cancellations.
Electronic and workplace balloting for recognition/derecognition
- What’s changing?
Trade union ballots will be modernised to allow electronic and workplace voting methods
Unfair Dismissal
• What’s changing?
The qualifying period for ordinary unfair dismissal will reduce from two years to six months, and the statutory compensation cap will be removed – increasing financial exposure for employers. These changes are expected in 2027. See our blog here on whether it’s a positive change for employees.
Zero-Hours Contracts & Shift Guarantees
- What’s changing
New rights will ensure workers on zero-hours contracts receive guaranteed minimum hours, advance notice of shifts, and compensation if shifts are cancelled without reasonable notice.
Flexible Working Reform
- What’s changing
The Government is consulting on the default position being an accepted flexible working pattern, with tighter reasons for refusal and a more onerous duty to consult.
Stay Ahead of the 2026 Employment Law Reforms
The most significant employment law changes in a generation are already taking effect – and with more reforms rolling out throughout 2026 and beyond, the window to prepare is narrowing. The cost of getting it wrong has never been higher.
That’s where Thrive comes in.
Employment Law Expertise with a Human Touch
Thrive is different to most law firms. We have the technical and commercial knowledge to provide you with the very best employment law support, we just do it with a deep understanding of the human aspects of human resources. We‘ve been helping employers of all sizes stay compliant, reduce risk, and look after their people since 2018.
What’s at stake with the Employment Rights Act
The ERA introduces sweeping changes that touch every part of your people strategy – from day-one SSP entitlements and expanded unfair dismissal protections, to new rights around flexible working, zero-hours contracts, and whistleblowing. Getting it wrong means tribunal claims, financial exposure, and reputational risk.
How Thrive Can Help
We don’t just tell you what’s changing , we help you do something about it. Our lawyer-led team can support you with:
ERA Risk Assessments: We’ll assess your current contracts, policies, and workforce structures to identify where your exposure lies, so you can act before problems arise rather than react when they do.
Manager Training: Our training courses and coaching for leaders and managers cover everything from difficult conversations and managing flexible working requests to redundancy consultations and responding to protected disclosures The Business Desk — giving your people the confidence to get it right.
Practical Guidance & Policy Updates: From reviewing and drafting employment contract templates to advising on employment policies and guiding you through compliance with incoming employment regulations Thrive Law, our team handles the detail so you don’t have to.
Ready to get started?
Don’t wait for the reforms. Get in touch with the Thrive team today at enquiries@thrivelaw.co.uk or call 0113 869 8101 and find out how we can help you stay compliant, reduce risk, and protect your organisation. Final Thought
Employment law in the UK is undergoing significant reform, not just tweaks to existing rules. Many of these changes are substantive and will affect everyday HR and managerial decision-making. Waiting until the last-minute risks’ legal non-compliance and financial penalties.
The employment law landscape is undergoing significant reform, with major changes to sick pay, family leave, redundancy consultation, whistleblowing protections, zero-hours arrangements and unfair dismissal rights being introduced in phases across 2026 and 2027.
For employers, this is not simply a compliance update; it represents a structural shift in workplace rights and enforcement. Increased financial penalties, expanded day-one rights and stronger worker protections mean that policies, contracts, payroll systems and management training must all be reviewed proactively.
Preparing for the Employment Rights Act doesn’t need to be complex—but it does require the right expertise.
Get in touch with Thrive today to ensure your policies, processes, and people are fully aligned with the upcoming changes.
Businesses that prepare early, audit their practices and train their managers will be best placed to manage risk and adapt confidently. Those who delay risk increased tribunal exposure, regulatory scrutiny and reputational damage. If you need help to lead these changes, then contact enquires@thrivelaw.co.uk.
