UK Employment Law Changes in 2026: What Every Employer Needs to Know
Published: August 2026
The HR landscape is changing faster than it has in decades.
Following the introduction of the Employment Rights Act 2025, employers are now seeing the most significant programme of employment law reform in a generation. Many changes have already taken effect during 2026, while further reforms are scheduled throughout the remainder of the year and into 2027.
For business owners and managers, keeping up with these developments isn’t simply about compliance—it is about reducing risk, protecting your organisation and ensuring your people policies remain fit for purpose.
At HR Oriented, we believe good HR is proactive rather than reactive. This guide summarises the key legislative changes from January 2026 onwards and outlines the practical steps employers should be taking now.
Why these changes matter
Employment legislation rarely changes on this scale.
The Government’s “Make Work Pay” programme has introduced reforms affecting recruitment, contracts of employment, statutory payments, family leave, employee relations, workplace harassment, Employment Tribunals and trade union rights.
The CIPD has encouraged employers to move beyond simply understanding the legislation and instead focus on preparing managers, reviewing policies and ensuring HR practices are ready before each implementation date.
Changes that came into effect during 2026
April 2026
April represented the first major implementation phase.
Day One Statutory Sick Pay
One of the most significant reforms was the removal of the waiting period for Statutory Sick Pay (SSP).
Eligible employees can now receive SSP from the first day of sickness absence rather than waiting until the fourth qualifying day.
In addition, the lower earnings threshold has been removed, allowing many lower-paid workers to qualify for SSP for the first time.
What employers should do
- Review sickness absence procedures.
- Update payroll processes.
- Train line managers on the revised entitlement.
Day One Family Leave Rights
Eligible employees now benefit from:
- Day One Paternity Leave
- Day One Unpaid Parental Leave
Previously these rights required a qualifying period of service.
Employers should ensure contracts, handbooks and family leave policies accurately reflect these new entitlements.
Fair Work Agency
The Fair Work Agency has now been established.
The new body brings together enforcement responsibilities previously held by multiple organisations and is expected to take a more proactive approach to employment rights enforcement.
This increases the importance of maintaining compliant documentation and accurate employment records.
Increased penalties for collective redundancy breaches
Protective awards for failures in collective consultation have increased significantly.
Businesses considering restructures or redundancies should seek HR advice at an early stage to minimise legal and financial risks.
August 2026
Trade Union Balloting
Trade unions are now able to make greater use of electronic and workplace balloting in statutory ballots.
While this will mainly affect unionised employers, organisations should ensure HR teams remain aware of evolving industrial relations requirements.
October 2026
October brings another significant wave of employment law reform.
Employment Tribunal time limits increase
Employees now have six months, rather than three months, to submit most Employment Tribunal claims.
For employers this means:
- workplace documentation becomes even more important
- managers should maintain detailed records
- investigations should be conducted thoroughly
- HR files should be retained appropriately.
Good record keeping has never been more important.
Stronger duty to prevent sexual harassment
Employers must now take all reasonable steps to prevent sexual harassment in the workplace.
This builds upon previous legislation by raising the legal standard expected from employers.
Practical examples include:
- updated anti-harassment policies
- regular staff training
- manager training
- clear reporting procedures
- prompt investigations
- appropriate disciplinary action where required.
Third-party harassment
Employers now have additional responsibilities to protect employees from harassment carried out by customers, clients, contractors and other third parties.
Businesses operating in customer-facing environments should review their procedures and consider how incidents are reported and managed.
New Trade Union Information Requirements
Employers must provide new employees with information explaining their right to join a trade union.
Although relatively straightforward administratively, businesses should ensure onboarding documentation has been updated.
Looking ahead to 2027
Although many changes have already been introduced, some of the most significant reforms are still to come.
Unfair dismissal qualifying period reduces
From January 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years’ continuous service to six months.
For employers this means:
- probation processes become increasingly important
- managers need confidence in managing performance
- documentation must be robust
- performance concerns should never be left unmanaged.
This change is expected to increase the importance of effective people management from the first day of employment.
Zero-hours contract reforms
Further protections relating to zero-hours contracts are expected during 2027.
Although final regulations continue to develop, employers using casual workers should begin reviewing workforce planning now.
Bereavement Leave
Additional bereavement leave rights are expected to be introduced during 2027, expanding employee protections.
Flexible Working
Further reforms to flexible working remain part of the Government’s wider employment reform programme.
Employers should continue developing flexible working arrangements that balance operational needs with employee wellbeing.
What employers should be doing now
Rather than waiting for legislation to take effect, businesses should take a proactive approach.
We recommend:
- Reviewing all HR policies and procedures.
- Updating employee handbooks.
- Reviewing contracts of employment.
- Providing refresher training for managers.
- Reviewing recruitment and probation processes.
- Auditing harassment prevention measures.
- Ensuring disciplinary, grievance and investigation procedures reflect current legislation.
- Reviewing sickness absence policies.
- Seeking professional HR advice before implementing organisational change.
Taking these steps now will reduce legal risk and help ensure your business remains compliant as further reforms are introduced.
How HR Oriented can help
Employment legislation is evolving rapidly, and keeping up with every change can be challenging for busy employers.
At HR Oriented, we support UK businesses with practical, commercially focused HR advice. Whether you need your employee handbook reviewed, policies updated, support with employee relations or guidance through organisational change, we provide tailored HR solutions that help your business remain compliant while supporting your people.
If you’re unsure whether your HR documentation reflects the latest employment legislation, we’d be happy to help.
Get in touch today for a confidential conversation about your HR needs.