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Employment Law in 2026 – the changes employers need to know

2026 is set to be a year of upheaval and overhaul of the current UK employment law landscape. As the detail of the Employment Rights Act 2025 (ERA) becomes clearer, employers are starting to see just how wide-ranging these reforms will be in practice.

  • 15 January 2026
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Some changes are confirmed, while others remain subject to consultation and further guidance. Either way, employers will face increased obligations and greater risk if they fail to prepare.

But what does this mean for you? What should you watch out for in 2026 and how can you prepare effectively? Below, we take a closer look at the key changes coming this year…

Day-one family rights

April 2026 will be a cornerstone for many of the changes taking place. “Day-one rights” was one of the key commitments in the Government’s manifesto, and while day-one unfair dismissal rights have been softened to a six-month qualifying period, day-one family rights are here to stay.

From April 2026, employees will be entitled to paternity and unpaid parental leave from their first day of employment. This removes the current service requirements of 26 weeks’ continuous employment and 12 months’ service.

Employers should take note of this change and consider updating any policies and procedures – particularly where more generous leave entitlements are already in place. Managers should also be alerted to this change and training on this topic (and the others in this article) is recommended to ensure compliance.

Sick pay overhaul

The Statutory Sick Pay (SSP) regime is also set for a shake-up in April 2026.

Under the new rules:

  • SSP will become available from the first day of absence (removing the current three-day unpaid waiting period)
  • The lower earnings threshold is being removed
  • The weekly SSP will be calculated as a percentage of an employee’s usual income (rather than the current flat rate).

Payroll systems should be reviewed well in advance to ensure compliance with this change, alongside a review of policies and procedures. Putting robust systems in place early will help avoid errors and unintended consequences.

Enhanced whistleblowing protections

Whistleblowing was a hot topic in 2025 and is set to remain so in 2026. The ERA introduces enhanced protections for employees who ‘blow the whistle’. This will include broadening the parameters of what a ‘protected disclosure’ is to include concerns relating to sexual harassment. Employees who make such a disclosure will be protected against detriment and unfair dismissal.

Employers should ensure they have clear, confidential reporting channels in place and update policies to reflect these changes. Training managers to handle disclosures sensitively and appropriately will be essential to avoid legal and reputational risks.

Redundancy consultation shake-up

From April 2026, significant changes are also coming to collective redundancy consultation. The maximum protective award for failing to comply with collective consultation requirements will double from 90 days’ pay to 180 days’ pay per affected employee.

Ensuring redundancy procedures are up to date, as well as careful planning for a redundancy situation, will be vital to avoid potentially costly consequences.

Further changes expected later in 2026

A further raft of employment law reforms are set to take place in October 2026 (subject to further consultations). Key proposals include:

  • Limiting the use of fire and rehire – If an employee refuses a “restricted variation” to their contract – such as changes to pay or hours of work – and are dismissed, this will be considered as automatically unfair. Similarly, dismissing an employee in order to replace them with another person performing the same role, will also be automatically unfair.
  • Greater protection against sexual harassment – Further to the changes introduced in 2024, employers will be required to take “all reasonable steps” to prevent sexual harassment, rather than just the current “reasonable steps”.
  • Employment Tribunal time limit extension – The current three-month time limit to bring a tribunal claim will be doubled to six months for all Employment Tribunal claims.

Beyond 2026…

Employment law reform will not stop in 2026 – 2027 is set to be another bumper year of changes and developments.

Wider rights to bereavement leave are expected to be implemented, covering a broader range of circumstances where an employee may experience grief. Flexible working requests will have a lower threshold for rejection, with employers able to reject such a request on the existing grounds but only if the request is reasonable.

Additional changes to trade union rights are also expected over the coming years, although these remain subject to consultations and implementation in the Parliamentary schedule.

Why acting now matters

2026 marks a turning point for UK employment law, with reforms that will reshape workplace rights and employer responsibilities.

From day-one family entitlements and sick pay reform to enhanced whistleblowing protections and redundancy adjustments, these changes demand proactive planning. Acting now by updating policies, training managers, and auditing compliance, will not only help avoid costly claims but also put you in good stead for when the reforms come into effect.

Are you ready for the changes? Contact our Employment Law team today for tailored advice and practical support.

Authors

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