UK workplace law changes in 2026

2026 will bring significant reforms thanks to the Employment Rights Act (ERA) introduced at the end of December 2025. Employers will be relieved to know that implementation will be staged throughout 2026 with many of the key changes scheduled for 2027.

The Employment Rights Act: A Year of Change

We set out the key dates and employment law changes you can expect in 2026, focusing on the ERA, plus the annual changes in statutory payments and other issues, with practical steps for employers, HR professionals, and in-house lawyers.

With the level of change, we have concluded that the Government is keen to ensure that management and HR teams have plenty to occupy them next year!

December 2025 / January 2026

Trade union law

When the ERA becomes law, the Government has said that the following changes to trade union law will come into effect immediately:

• Repeal of the Strikes (Minimum Service Levels) Act 2023 and major parts of the Trade Union Act 2016
• New protections preventing against detriment for participating in industrial action and strengthening protection against dismissal
• Simplifying industrial action notices and industrial action ballot notices.

We’ve set out more detail here.

Single sex spaces

The government is due to respond to draft statutory guidance from the EHRC for public facing employers on single sex spaces.

In the meantime, a cautious approach is likely to be appropriate for most employers.

ERA Consultations (to mid-January)

The Government has launched a suite of ERA linked consultations on the following topics:

• right of trade unions to access workplaces
• duty to inform workers of their right to join a union
• enhanced dismissal protection for pregnant women and new mothers
• bereavement leave (including pregnancy loss)

They have also indicated that there could be further consultations before regulations are introduced, implementing some of the headline changes that the Government intends to take. 

April

National Minimum Wage, Statutory Sick Pay and family leave pay increases

From 1 April 2026, the new rates for National Minimum Wage are:

• for those aged 21 and over – an increase from £12.21 to £12.71 per hour
• for those aged 18–20 – an increase from £10.00 to £10.85 per hour
• for those aged 16–17 and apprentices – an increase from £7.55 to £8.00 per hour.

From 1 April 2026, Statutory Sick Pay will increase from £118.75 to £123.25 per week.

Rates for Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Neonatal Care Leave Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay will increase from £187.18 to £194.32 per week, with the earnings threshold required to qualify for these types of family leave pay increasing to £129 per week from £125 per week from 6 April 2026.

ERA reforms to take effect in April (date tbc)

Employment Rights Act: if the Government adheres to its published timetable, April 2026 would bring the following changes: 

• Statutory Sick Pay (SSP) reforms: SSP will be payable from the first day of absence and available to all employees, regardless of earnings. The lower earnings limit and waiting period will be removed.
• Day one rights for family leave: employees will gain the right to paternity leave and unpaid parental leave from day one of employment.
• Collective redundancy consultation: the maximum protective award for failure to consult in collective redundancies will double from 90 to 180 days’ pay.
• Trade Union recognition: the process for trade union recognition will be simplified, and electronic and workplace balloting will be introduced.
• Gender and menopause action plans: large employers to voluntarily detail the evidence-based actions they are taking to both improve gender equality, and support employees during the menopause.

September

Financial Services - new rules on Non-Financial Misconduct

From 1 September 2026, the 37,000 or so non-bank regulated firms subject to the FCA Senior Manager & Certification Regime (SMCR) will be subject to the same rules on non-financial misconduct as banks, meaning that they will need to report disciplinary action (defined as a written warning, suspension, deduction or recovery of remuneration or dismissal) to the FCA, if the action is as a result of serious unwanted bullying, harassment or violence towards a colleague, where the individual is ‘personally culpable’.

Essentially, any ambiguity on whether in principle, disciplinary action in respect of Non-Financial Misconduct is reportable for all SMCR firms has been addressed.

The FCA has published the final COCON and FIT changes together with its guidance here.

Employers should review their existing policies and procedures to ensure that it’s clear that bullying, harassment or violence will not be tolerated and will potentially lead to disciplinary action, which could be reported to the FCA.  Train HR and Compliance colleagues on the changes.

October

Again, if the government adheres to its published timetable for implementation of the Employment Rights Act, October would bring the following changes:

• Employment Tribunal time limits: Extending the time limit for employees to claim against their employer from 3 to 6 months 
• Preventing harassment: New strengthened protections requiring employers:
  • to take “all reasonable steps” to prevent sexual harassment of their employees
  • not to permit the harassment (in relation to all relevant protected characteristics) of their employees by third parties 
• Fire and re-hire: making it automatically unfair to dismiss an employee (“fire and rehire”) for refusing to accept certain contract variations e.g. to pay, pensions, hours, and holiday entitlement.
• Trade unions and industrial action:
  • a new duty to inform workers of their right to join a trade union
  • measures to strengthen trade unions’ right of access
  • new rights and protections for trade union representatives
  • greater protections from detriments for taking industrial action.

The Government says that some measures may require more than one round of consultation.  As a result, we think it’s possible that the implementation schedule could be delayed – with the April elements possibly delayed to October 2026. We will keep an eye on developments. Keep checking back in with our tracker for any updates on the planned timings.

2027

The ERA changes scheduled for 2027 are:

• Protection from unfair dismissal for employees after 6 months’ service and potentially the removal of the compensation limit
• Collective redundancy consultation threshold: new trigger for collective redundancy consultation obligations
• Zero hours contracts: new rights for zero and low hours contract and agency workers
• Flexible working: employers will have to provide a ‘reasonable’ reason to refuse an employee’s flexible working request
• Rights for pregnant workers: new enhanced protections for pregnant employees and those returning from statutory family leave to limit the circumstances in which they may be dismissed.

What should employers do to prepare for the Employment Rights Act changes?

• Audit contracts and handbooks:
  • update family friendly and sickness absence policies to reflect day 1 rights
  • consider how you’re going to communicate the right to join a trade union
  • review and update probation periods and performance management processes
  • check that harassment policies and procedures reflect new statutory entitlements.
• Train managers: prepare for new dismissal, redundancy, and harassment prevention requirements. 
• Conduct sexual harassment risk assessments and track and address workplace issues. Find out how we can help you here.
• Monitor consultations and guidance: stay alert for further regulations and government guidance as implementation details are finalised.