UK Employment Law Changes 2026: The Employment Rights Act Is Here

The Employment Rights Bill received Royal Assent on 18 December 2025 and is now the Employment Rights Act 2025 — the biggest overhaul of UK employment law in a generation. This is no longer something to prepare for: the first major wave of changes took effect in April 2026 and is already binding on every UK employer. Further waves arrive in October 2026, January 2027, and through 2027.

Here's the complete picture, wave by wave. For the full detail with action checklists, download our free 2026 UK Employment Law Changes guide.

Already in Force: April 2026

Statutory Sick Pay From Day One

Since 6 April 2026, SSP is payable from the first day of sickness absence — the three waiting days are gone. The lower earnings limit has also been removed, so every employee qualifies regardless of earnings. The 2026/27 rate is £123.25 per week, or 80% of average weekly earnings if that's lower. If your payroll is still applying waiting days, you are non-compliant today.

Day-One Paternity and Parental Leave

Paternity leave no longer requires 26 weeks' service, and unpaid parental leave no longer requires a year — both are day-one rights for any employee whose child arrives on or after 6 April 2026. Bereaved partners also gained improved access to paternity leave.

Collective Redundancy: Protective Award Doubled

Fail to properly inform and consult on 20+ redundancies and a tribunal can now award up to 180 days' pay per employee — double the previous 90. Process mistakes in restructures have become twice as expensive overnight.

Whistleblowing Protection for Harassment Reports

Sexual harassment is now a qualifying disclosure under whistleblowing law. An employee who reports it is protected from dismissal and detriment from day one, with no cap on compensation if you get it wrong.

The Fair Work Agency

Established on 7 April 2026, the Fair Work Agency is the UK's new single labour market enforcement body, combining minimum wage, statutory sick pay, and employment agency enforcement. For the first time, the state can proactively enforce these rights — no employee claim required.

New Rates and Limits

• National Living Wage — £12.71 per hour for 21 and over; £10.85 for 18–20; £8.00 for 16–17 and apprentices
• Statutory family pay — maternity, paternity, adoption, shared parental, bereavement, and neonatal care pay all rose to £194.32 per week
• Tribunal limits — a week's pay is capped at £751; the unfair dismissal compensatory award cap is £123,543; maximum statutory redundancy pay is £22,530
• Holiday records — you must now keep records proving holiday pay compliance for at least six years

Coming October 2026: Harassment, Tipping and Tribunal Time Limits

• Third-party harassment liability — employers become liable for harassment of staff by customers, clients, and other third parties unless they took all reasonable steps to prevent it
• "All reasonable steps" — the sexual harassment prevention duty is raised from "reasonable steps" to this significantly higher standard
• Tribunal time limits double — claimants will have six months instead of three to bring most claims
• Tipping rules — employers must consult workers before creating or changing a tipping policy, and review it every three years

Coming 1 January 2027: The Unfair Dismissal Overhaul

The qualifying period for unfair dismissal drops from two years to six months — and at the same time, the cap on the compensatory award is removed entirely. Compensation will reflect actual financial loss with no statutory ceiling.

On the same date, fire and rehire becomes automatically unfair. Dismissing employees for refusing changes to their terms will only be defensible where the business faces genuine financial difficulties threatening its viability.

Together these are the sharpest recalibration of dismissal risk in decades. Employers have until the end of 2026 to build structured probation processes, train managers on fair procedure, and tighten documentation.

Further Ahead in 2027

• Guaranteed-hours contracts, shift notice rights, and cancellation compensation for zero-hours and low-hours workers
• A new statutory (unpaid) bereavement leave right
• Mandatory menopause and gender pay gap action plans for employers with 250+ staff
• Strengthened pregnancy and maternity dismissal protections
• NDA clauses that silence harassment or discrimination allegations become void

What About the Right to Disconnect?

It didn't happen. The proposed statutory Code of Practice on switching off was shelved and did not make it into the Act. There is currently no timeline for a UK right to disconnect.

What Employers Should Do Now

• Verify April 2026 compliance — day-one SSP, new rates, day-one family leave, and six-year holiday records are already law. Our compliance audit service can check your position.
• Prepare for October 2026 — run a harassment risk assessment covering third parties, refresh training, and document every preventative step.
• Get ahead of January 2027 — build structured probation reviews and train line managers on fair dismissal from day one. Our contracts and handbooks service can update your framework.
• Audit zero-hours arrangements — guaranteed-hours obligations arrive in 2027; restructuring takes time. In the meantime, our free zero-hours holiday calculator keeps your holiday pay compliant.

The Employment Rights Act 2025 is not a future problem. Part of it is already law, and employers who treat 2026 as a preparation year for the rest will be in a far stronger position than those who wait for enforcement.

At Infinity HR, we're helping businesses through every wave of these changes. Get in touch for a free consultation, or download the full 2026 Employment Law Changes guide.