Employment law changes in 2026 and beyond

A practical guide for HR leaders and SMEs

2026 will bring the biggest shake-up in UK employment law in years. The Employment Rights Act 2025 (ERA 2025) introduces wide-ranging reforms that will affect how organisations manage people, handle risk, and stay compliant.

This guide explains what’s changing, when it’s changing, and what employers should be doing now — in clear, practical terms.

The key changes at a glance

The Employment Rights Act 2025 will:

• Strengthen protections for zero-hours and insecure workers
• Expand rights around flexible working
• Toughen employer duties to prevent sexual harassment and third-party harassment
• Increase trade union rights and reform industrial action rules
• Remove the waiting period and lower earnings limit for Statutory Sick Pay
• Extend employment tribunal time limits from three to six months
• Introduce changes to paternity and parental leave
• Pave the way for mandatory ethnicity and disability pay gap reporting

👉 These changes will roll out in stages across 2026 and beyond, with many details set by further regulations and codes of practice.

When do the changes take effect?

The Act received Royal Assent on 18 December 2025, with implementation happening in phases.

Key dates employers should know

• 18 December 2025
  Some measures took effect immediately, including the repeal of minimum service level requirements during strikes.
• 6 January 2026
  Powers came into force allowing the Government to introduce detailed regulations and codes of practice covering:
  • Zero-hours contracts
  • Flexible working
  • Family-related leave
  • Fire and rehire
  • Collective redundancies
  • Umbrella companies
  • Trade union matters
• 18 February 2026
  Further changes relating to trade unions and industrial action take effect.
• 6 April 2026
  Changes to paternity leave and parental leave come into force.

Many of the most significant reforms still depend on secondary legislation, expected throughout 2026.

Sexual harassment: higher expectations for employers

Employers will face stronger legal duties to prevent sexual harassment, including harassment by third parties such as customers or clients.

The Government is consulting on what counts as “reasonable steps” to prevent harassment — meaning:

• Policies alone won’t be enough
• Training, reporting routes, and action will matter more than ever

🔗 Internal link suggestion: Workplace Harassment & Respect at Work

Flexible working and zero-hours contracts

ERA 2025 significantly boosts protections for:

• Workers seeking flexible working arrangements
• Individuals engaged on zero-hours or variable contracts

Further consultation is expected on how these rights will operate in practice, but employers should already be reviewing:

• Contract models
• Workforce planning
• How flexible working requests are handled

🔗 Internal link suggestions:

• Flexible Working Support for Employers
• Managing Zero-Hours and Casual Workers

Statutory Sick Pay and tribunal claims

Two changes that affect almost every employer:

Statutory Sick Pay (SSP)

• The waiting period is abolished
• The lower earnings limit is removed

This will significantly expand SSP eligibility and has payroll and absence-management implications for SMEs.

🔗 Internal link suggestion: Absence Management & Statutory Pay

Employment tribunal time limits

• The deadline to bring most tribunal claims increases from 3 months to 6 months

This means:

• Longer exposure to potential claims
• Greater importance of record-keeping and early issue resolution

Trade unions and industrial action

The Act strengthens trade union rights and reforms industrial action law, including:

• Longer ballot validity periods
• Shorter notice requirements
• Easier routes to recognition

Several consultations are already under way, with more expected throughout 2026.

Other changes on the horizon

Alongside ERA 2025, employers should also watch for:

• Increases to NMW/NLW and statutory pay rates
• A new right to bereaved partner’s paternity leave
• Proposed mandatory ethnicity and disability pay gap reporting
• Possible limits on non-compete clauses
• Potential reform of the UK whistleblowing framework

What HR leaders and SMEs should do now

1. Identify your risk areas
   Focus on flexible working, harassment prevention, SSP, and union engagement.
2. Plan policy updates early
   Don’t wait for the last minute — build updates into your 2026 HR roadmap.
3. Train managers
   Many changes will fail or succeed at line-manager level.
4. Strengthen documentation
   Longer tribunal time limits mean records matter more than ever.
5. Stay consultation-aware
   Some changes may be shaped by employer feedback — now is the time to engage.

Need help navigating the changes?

The Employment Rights Act 2025 will affect every organisation, but not in the same way. Getting this wrong can be costly — getting it right can strengthen your people strategy.

LBJ Consultants support HR leaders and SMEs with:

• Employment law compliance
• Policy updates and implementation
• Practical manager guidance
• Risk-focused HR advice

📞 Call us on 07984 568523
📩 Or get in touch to discuss how these changes affect your business.