Employment Law Guide 2026

The Employment Rights Act 2025 (ERA 2025) finally received Royal Assent on 18 December 2025 and brings it with it some of the biggest reforms to employment laws in Great Britain for years. Changes will be implemented over the next couple of years and there is so much for employers to get to grips with and prepare for. Even though the ERA 2025 has now been passed, further consultations and regulations on the detail of significant new rights and obligations will follow. Nevertheless, important changes are expected to come into force in 2026 including those relating to Statutory Sick Pay, paternity and parental leave, fire and rehire, sexual harassment, third party harassment, trade union access rights and other trade union changes, increased employment tribunal time limits and the doubling of the collective redundancy consultation protective award. Employers will also need to prepare now for significant changes coming into force on 1 January 2027 – the reduction in the qualifying period of employment for bringing an unfair dismissal claim (from two years to six months) and the removal of the statutory cap on the compensatory award.

Another key change for employer in 2026 is the extension of right to work checks. Other changes include National Minimum Wage increases, statutory rate rises, the possible publication of the draft Equality (Race and Disability) Bill and possible changes to non-disclosure agreements.