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Upcoming Changes
This page summarises employment law changes that are expected in the future. For changes that are already in force, please see the Recent Changes page.
The Employment Bill/ Employment Rights Act
The Employment Rights Bill, originally introduced on 10 October 2024, representeda significant overhaul of UK employment law, marking the most substantial changes in over three decades. The Bill aimed to enhance workers' rights and provide a more balanced framework for both employees and employers. This was given royal assent and became part of the Employment Right Act on 16 December 2025.
The changes are extensive, covering various aspects of employment law, including unfair dismissal, flexible working, zero-hours contracts, and more.
Different elements of the Act will be implemented over the next few years.
On this page we summarise the key changes that will impact SMEs and the proposed dates for implementation.
Date Planned
Description
18th February 2026
Trade Union Rights
The Act enhances trade union rights, simplifying the recognition process and allowing electronic balloting. These changes aim to strengthen workers' collective bargaining power and ensure fair treatment during redundancies.
April 2026
Collective Redundancy Protective Award
If an organisation fails to consult correctly in line with collective consultation requirements (i.e. where there are more than 20 redundancies proposed), employees can be awarded compensation of up to 90 days' pay. This will be doubled to a maximum of 180 days.
April 2026
Establishment of the Fair Work Agency
A new enforcement body, the Fair Work Agency, will be established to consolidate existing enforcement functions and ensure compliance with employment rights such as statutory sick pay, national minimum wage, holiday pay, agency worker rights and modern slaver.
This agency will have the authority to investigate, take action against non-compliant businesses and bring Employment Tribunal proceedings on behalf of a worker. This will provide a robust mechanism for enforcing new rights and protections introduced by the Act (and other areas of employment law).
April 2026
Statutory Sick Pay
Significant changes are proposed for statutory sick pay (SSP). The Act will remove the waiting period of 3 days before SSP is paid, making it available from the first day of absence.
It will also remove the lower earnings limit for SSP, bringing all employees within the scope of SSP payments, meaning worked would be entitled to either the SSP rate or 80% of their normal wages (whichever is lower). It is estimated that this will affect up to 1.3 million working people.
April 2026
Family Leave
A day one right for paternity leave and unpaid parental leave, will be introduced, providing support for employees facing family-related challenges. Eligibility for statutory paternity pay will remain unchanged.
April 2026
Change to Trade Union recognition rules
The Act will make changes to holding a ballot for recognition, workers in a proposed bargaining and enhancing other protections.
April 2026
Wider protection for Whistleblowers
The Act strengthens whistleblowing protections by clarifying that disclosures of sexual harassment can be covered by whistleblowing legislation and by extending protection to a wider range of workers (self-employed contractors, sub-postmasters, judiciary, non-execs, trustees, trade union reps, and job applicants).
October 2026
Strengthened protections against Harassment
The Act introduces strengthened protections against workplace harassment, including third-party harassment which will become a standalone claim. Employers will be required to take "all reasonable steps" to prevent harassment, raising the standard from the previous requirement of "reasonable steps."
October 2026
Employment Tribunal Time Limits
The time limits to make a claim to an employment tribunal will be extended from 3 months to 6 months for the majority of claims (including discrimination and unfair dismissal).
October 2026
Tightening Tipping Laws
Employers will need to consult with their workers or their representatives before creating a tipping policy and update their policy every 3 years, consulting each time
October 2026
Trade Union Statement
Employers will be under a requirement to provide a statement to an employee, at the same time as their statement of main terms, to inform them that they have the right to join a trade union.
October 2026
Trade Union Access to workplace rights and enhanced protections for union activity
The Act will be updating rules on a trade unions right of access to the workplace, provide a new right to reasonable accommodation and facilities for trade union reps carrying out their duties, a new statutory role of union equality and protection against detriment.
1st January 2027
Unfair Dismissal and Day-1 rights
The qualifying period for making a claim of unfair dismissal reduces from two years to 6 months.
This could mean employers will need to assess new starters more robustly in the first few months and are less likely to give them additional times to meet standards as this would increase risk and require full procedures around unfair dismissal to be carried out plus the general risk of a claim.
January 2027
Removal of unfair dismissal cap
The cap of 52 weeks wages or £118,223.00 (whichever is lower) for the compensatory unfair dismissal award will be removed.
January 2027
Restrictions on Fire and Rehire Practices
The Act seeks to restrict the controversial practice of "fire and rehire," where employees are dismissed and re-engaged under new terms. It will be automatically unfair to dismiss an employee for refusing to accept a contract variation unless for limited exceptions when the employer can demonstrate that the changes are necessary to address financial difficulties threatening the business's viability.
2027
Flexible Working as a default right
The Act proposes making flexible working a default right, requiring employers to grant flexible working requests unless it is unreasonable to do so. Employers must provide clear reasons for any refusal, ensuring transparency and fairness in the decision-making process.
2027
Zero-Hours Contracts and Guaranteed Hours
The Act addresses the issue of zero-hours contracts by requiring employers to offer guaranteed-hours contracts to workers who regularly work more hours than their contracts indicate. This change aims to provide greater job security and predictability for workers. Employers must also give reasonable notice of any shift changes and compensate workers for late cancellations, ensuring fair treatment and reducing the exploitation of zero-hours contracts.
2027
Collective Redundancy
The Act proposes changes to collective redundancy consultation requirements, removing the "single establishment" limitation. This means that collective consultation obligations will apply across the entire business, not just at individual sites.
2027
Bereavement Leave
The Act will expand the scope of bereavement leave to apply more broadly than on the loss of a child, introducing a new day one right to at least one week of leave following the loss of a loved one. Exactly who this will entail will be set out in regulations, although it would be surprising if spouses, parents and siblings were not covered, and is likely to include miscarriages before the 24th week of pregnancy. Leave will be unpaid.
2027
Increased dismissal protection for pregnant workers
There will be increased protections against dismissal for pregnant workers and new mothers, as part of the Employment Rights Act. Specifically, it will be unlawful to dismiss a pregnant woman or new mother during or for six months after their return from maternity leave, except in specific circumstances. Protection will also apply to other forms of family friendly leave such as adoption leave, shared parental leave, neonatal care leave and bereaved partners paternity leave.
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