Big changes are on the horizon with Employment Law Changes 2026, thanks to the new Employment Rights Bill. Whether you run a small business or manage HR for a larger organisation, getting ahead of these changes is essential to stay compliant, protect your business, and support your employees effectively.
Here’s everything you need to know about these major updates and how they could impact your workplace:
Employment Law Changes Timeline 2026 -2027
Below is the timeline for changes set out by the Government. We will go into what some of these points mean in more details afterwards:
Measures that will take effect on 18 February 2026
- the repeal of the great majority of the Trade Union Act 2016, thereby simplifying requirements on trade unions, including in relation to industrial action and political funds
- removing the 10-year ballot requirement for trade union political funds
- simplifying industrial action notices and industrial action ballot notices
- protections against dismissal for taking industrial action
- employees that are newly eligible for ‘Day 1’ Paternity Leave and Unpaid Parental Leave can give notice
Measures that will take effect on 6 April 2026
- collective redundancy protective award – doubling the maximum period of the protective award
- ‘Day 1’ Paternity Leave and Unpaid Parental Leave
- whistleblowing – strengthening protections for workers who ‘blow the whistle’ on sexual harassment
- Bereaved Partners’ Paternity Leave – (non-MWP measure) will enable bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life
- Statutory Sick Pay (SSP) – removing the Lower Earnings Limit (LEL) and waiting period
- action plans on gender equality and supporting employees through the menopause (voluntary)
- menopause guidance
- simplifying trade union recognition process
Measures that will take effect on 7 April 2026
- the establishment of the Fair Work Agency
Measures that will take effect in August 2026
- electronic and workplace balloting for Statutory Trade Union Ballots
Measures that will take effect in October 2026
- bringing forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body in England
- procurement – two-tier code
- tightening tipping law
- the duty to inform workers of their right to join a trade union
- strengthening trade unions’ right of access
- requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees
- introducing an obligation on employers not to permit the harassment of their employees by third parties
- introducing a power to enable regulations to specify steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
- unfair practices in the trade union recognition process
- new rights and protections for trade union representatives
- extending protections against detriments for taking industrial action
Measures that will take effect in October 2026
- employment tribunal time limits
Measures that will take effect in December 2026
- commencement of the Mandatory Seafarers’ Charter
Measures that will take effect in January 2027
- reduction of unfair dismissal qualifying period to 6 months, for dismissals from 1 January 2027, and uncapping compensatory awards
- fire and rehire protections
Measures that will take effect in 2027
- action plans on gender equality and supporting employees through the menopause (mandatory)
- enhanced dismissal protections for pregnant women and new mothers
- specifying steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment
- extending blacklisting protections
- industrial relations framework
- regulation of umbrella companies
- collective redundancy – collective consultation threshold
- flexible working
- bereavement leave including pregnancy loss
- ending the exploitative use of zero-hours contracts
- electronic and workplace balloting for recognition and derecognition ballots
Employment Law Changes 2026 – 2027 Main Points
Day-One Unfair Dismissal Rights
Right now, employees can only bring claims for unfair dismissal after completing two years of employment. From 2026, the Employment Rights Bill gives employees the right to claim unfair dismissal after 6 months.
On top of this, there will be a removal of the compensation cap. Before this change, compensation for unfair dismissal is capped at the lower of a years pay and £118,223. However, under the new Act, this limit is removed, and there is no limit on what can be claimed.
This makes it even more important to make sure you’ve made the correct hiring decision.
Immediate Entitlement to Statutory Sick Pay (SSP)
Currently, Statutory Sick Pay (SSP) kicks in after a three-day waiting period and requires employees to meet a minimum earnings threshold. The changes coming in 2026 will remove these barriers, providing employees SSP entitlement from their very first day of employment, regardless of their earnings. As well as this, the earnings threshold will also be removed, so it will be available to any employee.
Employers should start preparing now to manage potential increases in payroll costs and ensure robust processes for managing absences and sick leave.
Due to this, we would expect the importance of references to increase. Whilst any could go on sick at any time, getting a good reference will help judge whether someone is likely to abuse the system.
Enhanced Family and Bereavement Leave Rights
The new legislation will significantly expand family leave and introduce new rights for bereavement leave:
- Paternity Leave: The current 26-week service requirement will be abolished, making paternity leave available immediately.
- Parental Leave: Employees will no longer need one year’s continuous service to qualify for unpaid parental leave – it will now be available from day one.
- Bereavement Leave: Employees will have immediate access to at least one week of bereavement leave, with further details to be confirmed by forthcoming regulations.
Why Are These Employment Law Changes Being Introduced?
These legislative updates are part of a broader UK government initiative to strengthen employee protections, enhance job security, and foster fairer workplaces. The intention is clear: employers must be more diligent than ever, ensuring their recruitment processes are robust enough to identify suitable candidates from day one.
The Rising Importance of Making the Right Hiring Decisions
With employment law significantly strengthening employee protections from 2026 onwards, the importance of making the correct hiring decision is greater than ever before. Under the new regulations, dismissing an unsuitable employee will no longer be a straightforward process, especially after the initial probationary period. Employers must now approach recruitment decisions with heightened scrutiny and caution.
Getting recruitment wrong can be incredibly costly. According to our experience, a single bad hire can cost businesses around £6,000, factoring in initial training costs, lost productivity, management time spent addressing performance issues, and the potential mistakes made by the employee. These expenses quickly add up, turning recruitment errors into significant financial burdens.
Therefore, investing additional effort into thorough due diligence before making hiring decisions is no longer merely beneficial – it’s essential. Employers should carefully screen candidates, conduct comprehensive reference and background checks, and ensure their internal procedures align with best practices to mitigate these risks effectively.
How Employers Can Prepare
Given these impactful employment law changes, UK businesses must rethink their approach to recruitment, employee management, and HR policies. Preparation should begin well ahead of the 2026 implementation date:
- Review Recruitment Processes:
Employers must refine their hiring procedures to ensure thorough due diligence, helping to prevent the costly mistake of hiring the wrong person. - Update Employee Handbooks and Contracts:
Ensure all documentation reflects the updated employment rights, clearly outlining probationary terms and conditions. - Invest in Training:
Educate HR personnel and management teams about the upcoming legal changes and best practices for compliance. - Strengthen HR Support Systems:
Implement systems to monitor employee performance closely, particularly during the probationary period, ensuring accurate and fair assessments.
How Employment Tools by Aaron’s Department Can Help
These upcoming employment law changes make the recruitment process riskier and potentially more expensive if you get it wrong. To avoid costly unfair dismissal claims or unsuitable hires, employers need reliable, efficient systems to make well-informed decisions from day one.
Employment Tools by Aaron’s Department offers comprehensive employment screening services, including:
- Fast Tracked DBS Checks
- Digital ID Checks
- Reference Checks
- Right to Work Checks
- Online Training (CPD Accredited)
- Education History Validation and many other UK and International Checks to support your HR and recruitment processes.
Our easy-to-use platform provides all the tools you need in one place, helping you confidently choose the right candidates and significantly reduce the risk of costly hiring mistakes.
The aim of Employment Tools is to streamline your compliance efforts, enabling you to effortlessly meet the demands of these new regulations, minimise legal risk, and maintain your company’s reputation.
About The Author
John Schofield-Antoncich
John has processed more applications than days he has been alive, and has become the DBS expert. Got a question? He knows the answer!