In July, we wrote an introduction to the new Employment Rights Bill. Following Royal Assent on 18 December, this has become law as the Employment Rights Act 2025, heralding one of the most significant periods of UK employment law reform in decades.
Many of the Act’s provisions will not take immediate effect, but will be introduced gradually over the next two years. This article outlines what has already changed, what is due to change this year, and what employers and employees should expect.
What Will Change and When
The Act became law in December 2025 and has already ushered in change. Most future reforms are due to take effect in February, April and October 2026, and into next year. Until each change officially comes into force, existing employment law continues to apply.
December 2025
- Removal of minimum service levels for strikes
So far, just one change has come into force: legislation requiring “minimum service levels” during strike action was immediately repealed. According to the Act, employers can no longer rely on these rules to mandate minimum staffing levels during industrial action.
February 2026
- Stronger protection against dismissal for industrial action
Two changes significantly strengthen protections for workers involved in trade disputes:
– Dismissal for taking part in industrial action is automatically unfair.
- Trade union and industrial action reforms
Key reforms include:
– The required notice for industrial action is reduced from 14 days to 10 days.
– Picket supervisors are no longer required.
– A simple majority of votes is sufficient to authorise industrial action.
– Industrial action mandates extend from six months to 12 months.
– Ballot and action notice rules are simplified.
– Political fund rules for trade unions are different.
April 2026
- UK paternity leave and unpaid parental leave rights
Three reforms aim to improve access to family-friendly rights from day one of employment:
– Paternity leave is a day-one right, removing the 26-week service requirement.
– Unpaid parental leave is a day-one right, removing the one-year qualifying period.
– Paternity leave is no longer prevented after shared parental leave has been taken.
- Statutory Sick Pay (SSP)
Two reforms aim to widen eligibility and improve support:
– SSP is payable from the first day of illness, instead of the fourth.
– The lower earnings limit is abolished, allowing more workers to qualify.
- Increased protective awards for collective redundancy
One reform significantly increases financial risk for employer non-compliance:
– Where employers fail to properly consult during collective redundancies, the maximum protective award will double from 90 days’ pay to 180 days’ pay.
- Whistleblowing and sexual harassment law
Sexual harassment disclosures become a qualifying disclosure under UK whistleblowing law, meaning:
– Workers reporting sexual harassment receive protection from detriment.
– Dismissal linked to such disclosures may be automatically unfair.
- UK gender pay gap and menopause action plans (equality reporting)
Employers will be encouraged to create action plans addressing UK gender pay gaps, menopause support and related reporting. These plans will become mandatory in 2027.
- Creation of the UK Fair Work Agency
A new Fair Work Agency will be established in the UK to unite existing employment enforcement bodies and enforce rights such as holiday pay and SSP more effectively.
- Further trade union reforms
Additional trade union access rights will be introduced, as will easier methods for trade unions to gain workplace recognition (e.g. allowing union members to vote electronically).
Late 2026
- Whistleblowing and sexual harassment law
Sexual harassment disclosures become a qualifying disclosure under UK whistleblowing law, meaning:
– Workers reporting sexual harassment receive protection from detriment.
– Dismissal linked to such disclosures may be automatically unfair.Employers are strongly encouraged to review policies, contracts and HR practices in advance of each implementation date.
Early 2027
- Zero, casual and irregular hours contract rights
– Zero- and low-hour workers have the right to be offered a contract reflecting regular hours.
– Zero- and irregular-hour workers will have the right to be given advance notice of shifts and to be compensated for cancellations without reasonable notice.
- Unfair dismissal qualifying period
The Government will reduce the current two-year qualifying period for unfair dismissal. From 1 January 2027, subject to final implementation dates in the Employment Rights Act 2025, employees will gain full protection from unfair dismissal after six months.
Your Employment Law Checklist
Depending on your business’s makeup, you may wish to address the following policies in either Q1 or Q4 2026:
- Update your sickness policy
Remove references to SSP as payable on the fourth day. - Audit your employment contracts and policies
Ensure probation clauses are robust and trigger a review at months three and five. - Check your payroll software
Verify your payroll software is ready for the new SSP calculations. - Review your holiday pay
Check calculations for irregular-hour workers and those who earn additional pay elements. - Brief your managers
Explain that it is more critical than ever to effectively manage performance during probation.
Get Legal Advice with Newtons Solicitors
While the UK Employment Rights Bill became law as the Employment Rights Act 2025, employers and employees will feel most of its impact throughout 2026 and beyond. Collectively, its reforms strengthen worker protections, expand access to family and sick leave, and significantly enhance trade union rights and enforcement mechanisms.
Employers and employees alike should stay informed as each new phase is introduced, ensuring compliance and understanding in a rapidly evolving employment law environment. Whichever side of the fence you are on, Newtons Solicitors will gladly guide you through these changes. Please contact our employment law specialists to get ahead of the curve.