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 2026 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 from their very first day at work.
There will be an initial statutory probationary period, likely to be nine months, during which employers have some flexibility. But once past this probationary period, dismissing an employee will require careful justification and adherence to fair processes to avoid costly legal claims.
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.
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!
