The Employment Rights Act completed its passage through Parliament at the close of 2025, marking one of the most significant and controversial employment law reforms in a generation. The government has announced its plan for implementation across 2026 and 2027.
The changes touch almost every aspect of the employment relationship: unfair dismissal, industrial action, trade union rights, sick pay, family leave, harassment, redundancy consultation, flexible working and zero hours contracts. Reforms are phased in over two years and remain subject to consultation.
Our updated Employment Rights Act guide for Health and Safety Professionals reflects the final shape of the law and, critically, where the Act landed differently from earlier drafts.
18 December 2025
- Minimum service level rules for strikes removed.
18 February 2026
- Most of the Trade Union Act 2016 repealed.
- Simplified ballot and notice requirements.
- Industrial action notice period reduced to 10 days.
- Removal of 50 percent turnout requirement for ballots.
- Removal of extra public sector ballot thresholds.
- Picket supervisor requirement removed.
- Industrial action mandates extended to 12 months.
- Simplified ballot and industrial action notices.
- Political fund rules amended.
- Dismissal for taking protected industrial action becomes automatically unfair, removing the 12 week limit.
- Newly eligible employees can give notice for Day 1 paternity leave and unpaid parental leave.
1 April 2026
- National Minimum Wage increases.
- Statutory payment rates increase.
6 April 2026
Family rights
- Paternity leave becomes a Day 1 right.
- Unpaid parental leave becomes a Day 1 right.
- Restriction on taking paternity leave after shared parental leave removed.
- Up to 52 weeks unpaid bereaved partner’s paternity leave introduced.
- Temporary reduction in paternity leave notice requirements.
Sick pay
- Statutory Sick Pay payable from day one of illness.
- Lower Earnings Limit for SSP removed.
Collective redundancy
- Maximum protective award doubled from 90 to 180 days’ pay.
Whistleblowing
- Sexual harassment added as a qualifying disclosure.
Trade unions
- Simplified trade union recognition process.
Equality and menopause
- Gender pay gap and menopause action plans introduced on a voluntary basis.
- Menopause guidance issued.
7 April 2026
- Fair Work Agency established.
- Enforcement powers commence at a later date.
July 2026
- Although unfair dismissal changes take effect in January 2027, they will apply to employees already employed at that point.
- Employees hired from late June 2026 will qualify for six month protection from January 2027.
August 2026
Trade union ballots
- Electronic and workplace balloting introduced for statutory ballots.
- Applies to industrial action, union elections and other ballots.
October 2026
Harassment
- Employers liable for third party harassment unless all reasonable steps taken.
- Duty strengthened to require “all reasonable steps” to prevent sexual harassment.
- Power introduced to define what counts as reasonable steps in future regulations.
- Further change to non disclosure agreements expected, timing not yet confirmed.
Trade union rights
- New duty to inform workers of their right to join a union.
- Strengthened union right of workplace access.
- New rights and facilities for union representatives.
- Protection against detriment for taking industrial action extended.
- Regulation of unfair practices in union recognition process.
- Updated Code of Practice on trade union recognition expected.
Employment tribunals
- Time limit for most tribunal claims extended from 3 to 6 months.
Tipping
- Employers must consult before introducing a tipping policy.
- Tipping policies must be reviewed every 3 years.
Public sector outsourcing
- Two tier code reinstated to prevent less favourable terms for outsourced workers.
Adult social care
- Adult Social Care Negotiating Body established.
December 2026
- Mandatory Seafarer’s Charter introduced.
- Higher standards for pay, safety, job security and rest breaks.
1 January 2027
Unfair dismissal
- Qualifying period reduced from 2 years to 6 months.
- Cap on compensatory award removed.
Fire and rehire
- Dismissal to impose worse contractual terms becomes automatically unfair in most cases. Narrow exceptions apply and Code of Practice to follow.
During 2027 (Dates to be confirmed)
Pregnancy and maternity
- Stronger protection from dismissal for pregnant workers and new mothers.
Bereavement leave
- New statutory bereavement leave.
- Likely to include pregnancy loss.
- Paid or unpaid status not yet confirmed.
Zero hours and low hours contracts
- Right to guaranteed hours where requested.
- Right to reasonable notice of shifts.
- Right to compensation for cancelled, curtailed or moved shifts.
Flexible working
- Employers must state refusal reasons from a statutory list and explain why refusal is reasonable.
Harassment
- Regulations to define what counts as “reasonable steps” to prevent sexual harassment.
Gender pay gap and menopause action plans
- Move from voluntary to mandatory.
Collective redundancy
- Threshold to consider redundancies across the whole organisation, not just one establishment.
- Enhanced protection for certain seafarers.
Trade union reforms
- Extended protection against blacklisting.
- New industrial relations framework.
- Electronic balloting for recognition and derecognition.
Umbrella companies
- Expanded definition of employment agencies to include umbrella companies.
Timing Unknown
- New requirement to keep adequate annual leave records for at least six years.
- Further restrictions on non disclosure agreements relating to harassment and discrimination.
