Forthcoming Changes to the Employment Rights Act: What Employers and Workers Need to Know for 2026 and Beyond

The UK is on the cusp of the most significant overhaul of employment law in a generation. With the Employment Rights Bill receiving Royal Assent on 18 December 2025, it is now the Employment Rights Act 2025 (ERA 2025), and major reforms will begin rolling out in February, April, and October 2026, with further changes continuing into 2027. 



For HR teams, business leaders, and workers, understanding what’s coming is crucial. Below is a breakdown of the key reforms and what they mean in practice.

1. February 2026: Industrial Action and Trade Union Reforms

Significant changes to industrial action rules take effect early in the year, reshaping how unions organise and how employers manage disputes.

Key changes include:

• Industrial action mandates extended from 6 to 12 months. 
• Notice periods shortened: unions will need to give 10 days’ notice instead of 14.
• Picketing restrictions removed, including the requirement for a designated picket supervisor.
• Simplified ballot notices and reduced information requirements for industrial action paperwork. 
• Dismissal protection strengthened: dismissal for participating in industrial action becomes automatically unfair, removing the previous 12‑week limit.

These changes signal a shift towards empowering workers and unions while demanding new strategies from employers in dispute management.

2. April 2026: Family Leave, Sick Pay, Whistleblowing & Union Reforms

April will bring the biggest wave of changes, touching nearly every aspect of employee rights and HR operations.

Family Leave Reforms

• Day-one rights for paternity leave and unpaid parental leave for eligible employees. 
• Paternity leave is permitted after shared parental leave, giving greater flexibility to new parents.

Statutory Sick Pay (SSP) Overhaul

The SSP system undergoes its most substantial update in years:

• SSP becomes payable from day one of sickness (ending the 3‑day waiting period). 
• Lower Earnings Limit removed, extending SSP eligibility to thousands more workers. 
• New workers who previously earned below the threshold may receive 80% of average weekly earnings or the statutory rate, whichever is lower. 

Whistleblowing Protections Expanded

• Disclosures relating to sexual harassment will receive explicit protection.

Union Recognition and Balloting Modernised

• Provision for electronic and workplace balloting, modernising engagement with union members. 

Increases to Statutory Payments (from 6 April 2026)

• Family-related leave pay increases from £187.18 to £194.32 per week.
• SSP rises from £118.75 to £123.25 per week. 

Protective Award Increase

• Compensation for failure to consult collectively increases from 90 days’ pay to 180 days’ pay.

3. Broader Structural Reforms: 2026–2027

The ERA reforms go far beyond pay and leave. They mark a structural shift in UK employment rights.

Unfair Dismissal Qualification Period Reduced

From 1 January 2027, the qualifying period to claim unfair dismissal will be cut from two years to six months. 

This is a major change that will require employers to rethink probation periods and performance management. 

Unfair Dismissal Compensation Cap

The government plans to remove the cap (currently the lower of £118,223 or one year's salary), though negotiations continue. The House of Lords is requiring a formal review within three months of the Act becoming law. A final commencement date is expected in 2027.

Flexible Working, Pay Equity & Anti‑Harassment Duties

The ERA contains the most far‑reaching reforms in decades, including:

• strengthened anti‑harassment duties,
• protections for workers experiencing the menopause,
• further pay transparency requirements,
• reforms to zero‑hours and low‑hours contracts (details still under consultation).

4. What Employers Should Do Now

With reforms spanning two years and covering everything from sick pay to union ballots, employers should begin preparing immediately.

Key action points:

• Update HR policies (family leave, sickness absence, whistleblowing, union recognition).
• Review employment contracts, particularly in light of the new dismissal qualification period.
• Train line managers on the updated industrial action rules and new protections.
• Strengthen internal processes for handling flexible working, grievances, and harassment claims.
• Plan financially for increased statutory payments and expanded SSP coverage.

Acas is encouraging organisations to attend masterclasses, review guidance, and participate in ongoing government consultations.

Conclusion

The forthcoming changes to the Employment Rights Act represent a seismic shift in UK employment law—expanding worker protections, modernising union processes, and reshaping family leave and sick pay entitlements. With implementation staggered from early 2026 through 2027, organisations have time to prepare—but the scale of reform means that early planning is essential.

1. LinkedIn‑Ready Short Post

Forthcoming Changes to the Employment Rights Act: What HR Needs to Know for 2026

Big changes are coming to UK employment law in 2026, following Royal Assent of the Employment Rights Act 2025. Reforms roll out from February and April 2026, with more to follow into 2027.

Key highlights:

• Industrial action rules shift significantly: 10‑day notice periods, simplified ballots, and extended 12‑month mandates.
• Day‑one parental leave rights, plus major SSP reforms — including SSP payable from day one and the removal of the Lower Earnings Limit.
• Stronger whistleblowing protection, especially around sexual harassment.
• Statutory payments rising in April 2026.
• Unfair dismissal qualification drops to 6 months in 2027 — a major structural change for employers.

These reforms mark the biggest shift in UK employment law in a generation. HR leaders should start preparing now.

If you'd like a breakdown or checklist, I’ve put together resources — DM me!

2. HR Compliance Checklist (2026–2027)

✅ Industrial Action & Trade Union Changes (Feb 2026)

• Update policies to reflect:
• 10‑day notice for industrial action
• 12‑month mandate validity
• Removal of picket supervisor requirement
• Simplified ballots and notices
• Train managers on new unfair dismissal rules for industrial action.

✅ Family Leave Updates (April 2026)

• Update policies to include day‑one rights for:
• Paternity leave
• Unpaid parental leave
• Review shared parental leave processes.

✅ Statutory Sick Pay (SSP) Reforms

• Adjust payroll for:
• SSP from day one
• No Lower Earnings Limit
• Update sickness absence policy.
• Communicate changes clearly to staff.

✅ Whistleblowing

• Expand whistleblowing policy to include sexual‑harassment‑related disclosures.
• Provide refreshed training for managers.

✅ Union Recognition & Balloting

• Prepare for electronic and workplace balloting processes.
• Review internal procedures for union engagement.

✅ Statutory Payment Rates (6 April 2026)

• Update payroll systems for new rates:
• Family‑related leave pay → £194.32
• SSP → £123.25
• Communicate rate changes to employees who regularly use leave entitlements.

✅ Protective Award (6 April 2026)

• Update redundancy and collective consultation processes:
• Award rises from 90 days to 180 days.

✅ Unfair Dismissal (Jan 2027)

• Lower qualifying period: 2 years → 6 months
• Review and tighten probationary periods.
• Strengthen documentation and performance management.

Optional but Recommended

• Audit contracts for compliance with the ERA.
• Train HR teams and line managers on all ERA 2026 reforms.
• Attend Acas webinars / consult government guidance as updates continue.