UK employment law changes in 2026 are bringing new responsibilities for employers, with further reforms planned for 2027. The Employment Rights Act 2025 introduces significant changes to workers’ rights, workplace protections and how businesses manage their employees.
Some changes, including updates to Statutory Sick Pay and parental leave, have already taken effect. Others, such as stronger sexual harassment prevention duties and changes to unfair dismissal protection, have specific implementation dates that employers need to prepare for.
For UK businesses, keeping up with these changes is essential. Reviewing HR policies, maintaining accurate employee records and ensuring managers understand their responsibilities can help organisations prepare for new requirements.
Here are the key UK employment law changes in 2026 and the upcoming reforms employers should know about.
What Is the Employment Rights Act 2025?
The Employment Rights Act 2025 is a major piece of UK employment legislation designed to strengthen workers’ rights and improve workplace protections.
The legislation introduces changes covering Statutory Sick Pay, parental leave, sexual harassment, trade union rights, employment tribunal claims and unfair dismissal.
Rather than introducing everything at once, the government is implementing the reforms in stages throughout 2026 and 2027. This gives employers time to review their existing policies, update systems and prepare for new obligations.
Although many changes apply across Great Britain, some employment law provisions differ in Northern Ireland. Employers should check the rules that apply to their location and workforce.
Key UK Employment Law Changes in 2026
1. Statutory Sick Pay Changes
From 6 April 2026, Statutory Sick Pay (SSP) rules changed significantly.
Eligible employees no longer need to meet the previous Lower Earnings Limit to qualify for SSP. The three-day waiting period has also been removed, allowing eligible employees to receive SSP from the first qualifying day of sickness.
These changes mean more workers may qualify for sick pay, while employers need to ensure their payroll processes reflect the updated rules.
Businesses should review their sickness absence policies, check how SSP is calculated and ensure employee absence records are maintained accurately.
2. Paternity Leave and Unpaid Parental Leave Became Day-One Rights
From 6 April 2026, eligible employees gained access to Paternity Leave and Unpaid Parental Leave from the first day of employment, removing the previous minimum service requirements.
This change affects how employers manage family-related leave requests, particularly for employees who have recently joined an organisation.
Employers should review their parental leave policies and make sure managers understand the updated eligibility requirements.
Accurate employee start dates and leave records are also important for managing requests consistently and ensuring employees receive the rights they are entitled to.
3. Holiday Records and Collective Redundancy Protections
Two other important changes took effect on 6 April 2026.
Holiday records: Employers are required to retain relevant records of annual leave and holiday pay for at least six years. Businesses should have a reliable process for recording holiday entitlement, leave taken and holiday pay information.
Collective redundancy: The maximum protective award for certain failures to comply with collective redundancy consultation requirements doubled. This increases the potential financial consequences for employers that fail to meet their obligations.
Businesses planning large-scale redundancies should review their consultation procedures carefully and seek appropriate advice where necessary.
Keeping accurate records of employee leave, consultation meetings and employment decisions can help businesses manage these responsibilities more effectively.
4. The Fair Work Agency Has Been Established
The Fair Work Agency was established on 7 April 2026 to bring together employment rights enforcement responsibilities.
Its remit includes enforcement relating to areas such as the National Minimum Wage, holiday pay and Statutory Sick Pay, alongside other labour market responsibilities.
For employers, this reinforces the importance of maintaining accurate records and following employment requirements consistently.
Businesses should review their payroll processes, holiday records and HR procedures to identify any gaps. Clear documentation can also help employers demonstrate how they manage their responsibilities.
5. New Sexual Harassment Prevention Duties from 30 October 2026
One of the most important upcoming UK employment law changes takes effect on 30 October 2026.
Employers will be required to take all reasonable steps to prevent sexual harassment of their employees. The legislation will also introduce an obligation not to permit third-party harassment of employees, such as harassment by customers or clients.
These requirements mean employers should not rely on a written policy alone. They need to consider the practical steps they take to prevent harassment and respond appropriately when concerns are raised.
Before the changes take effect, businesses should:
- Review their anti-harassment and equal opportunities policies.
- Assess workplace risks, including risks involving customers and other third parties.
- Provide appropriate staff and manager training.
- Ensure employees know how to report concerns.
- Establish clear procedures for investigating complaints and taking appropriate action.
Taking these steps can help employers prepare for the new requirements and support a safer working environment.
6. Employment Tribunal Time Limits Have Increased
From 1 October 2026, the time limit for bringing most relevant Employment Tribunal claims increased from three months to six months.
The change applies to relevant workplace issues arising on or after 1 October 2026. For issues arising before that date, the previous time limit generally continues to apply.
For breach of employment contract claims in Scotland, the change is scheduled to take effect on 9 November 2026.
The longer time limit makes it particularly important for employers to manage workplace disputes, grievances and complaints carefully. Businesses should ensure concerns are documented, investigated appropriately and addressed without unnecessary delay.
Employers should also remember that the tribunal process and applicable time limits depend on the type of claim and the circumstances involved.
For further guidance, visit the official GOV.UK Employment Tribunal guidance.
7. Further Employment Law Changes Are Coming in 2027
The reforms do not end in 2026. Several important changes are scheduled for January 2027 and later in the year.
Unfair dismissal protection
From 1 January 2027, the qualifying period for ordinary unfair dismissal protection is due to reduce from two years to six months of employment. The cap on compensatory awards for successful ordinary unfair dismissal claims is also due to be removed.
This will affect how employers approach recruitment, probation, performance management and dismissal decisions.
Businesses should review their procedures, ensure managers are properly trained and maintain clear records of performance concerns and employment decisions.
Fire and rehire protections
Stronger protections relating to dismissal and re-engagement, commonly known as fire and rehire, are scheduled to take effect in October 2026. Employers considering contractual changes should review the applicable rules before taking action.
Other reforms during 2027
Further changes are planned in areas including enhanced dismissal protections for pregnant employees and new mothers, mandatory gender equality and menopause action plans for relevant employers, and new rights relating to guaranteed hours and shift arrangements.
The implementation dates for some of these measures remain subject to further detail and consultation. Employers should monitor official government updates rather than assume every proposed reform will begin at the same time.
How Should Employers Prepare for UK Employment Law Changes in 2026?
With changes being introduced throughout 2026 and into 2027, employers should take a proactive approach rather than waiting until a new requirement comes into force.
Review your HR policies
Check your sickness absence, parental leave, holiday, disciplinary, redundancy and dismissal policies. Update them where necessary and ensure employees and managers can access the latest versions.
Keep employee records accurate
Maintain accurate employee details, start dates, holiday records, sickness absence information and relevant employment documentation.
Reliable records can help HR teams respond to employee requests, manage workplace issues and demonstrate that appropriate procedures have been followed.
Train managers and supervisors
Managers should understand how employment law changes affect their day-to-day responsibilities. Provide clear guidance on handling leave requests, performance concerns, grievances, redundancy consultations and workplace harassment complaints.
Monitor official guidance
Employment law requirements and implementation dates can change as further regulations are introduced. Regularly check GOV.UK and Acas for the latest guidance.
Where a change could significantly affect your organisation, consider obtaining advice from a qualified employment law professional.
Use HR software to centralise employee information
Managing employment requirements becomes more difficult when information is spread across spreadsheets, emails and separate documents.
HR software can help businesses organise employee records, manage leave, store documentation and keep essential information accessible to authorised users.
A central system can also reduce manual administration and help HR teams maintain more consistent processes.
How RootHR Can Help
Keeping up with employment law is easier when employee information is organised and accessible.
RootHR helps UK businesses manage employee records, leave, documents and other essential HR information through a central platform.
Instead of relying on scattered spreadsheets and separate files, HR teams can keep important information organised and easier to retrieve. This supports day-to-day HR administration and helps businesses maintain more consistent record-keeping processes.
As employment requirements continue to evolve, having reliable HR processes can make it easier to review policies, manage employee information and prepare for upcoming changes.
Explore RootHR to learn more about managing employee information and HR administration in one place.
Final Thoughts
The UK employment law changes in 2026 introduce important updates to Statutory Sick Pay, parental leave, holiday records, enforcement and Employment Tribunal time limits. New sexual harassment prevention duties are due to take effect on 30 October 2026, with further changes planned for 2027.
For employers, the best approach is to prepare early. Review your policies, keep employee records accurate, train managers and monitor official guidance as new requirements are introduced.
With the right processes and HR software in place, businesses can manage their HR responsibilities more effectively and be better prepared for changes to UK employment law.