Key UK employment law changes in 2026: what every SME should know
2026 will be transformative for UK employment law as the Employment Rights Act 2025 begins to take effect. The Act strengthens rights for employees and means that many employers will need to update their contracts and procedures to comply with the new rules.
In this article, we cover the key changes to UK employment law that will take effect in 2026, the further changes expected to kick in in 2027 and why businesses need to take action now.
Need expert support with UK employment law? Please contact Miranda Mulligan who will be happy to advise.
Key points to know about 2026 UK employment law changes
- The Employment Rights Act 2025 became law on 18 December 2025
- The terms of the Act will come into force in phases across 2026 and 2027
Measures taking force in 2026 include:
- Extending the time limit to bring a claim to an employment tribunal
- Rights to paternity leave and unpaid parental leave from the first day of employment
- Strengthening employers’ duty to protect against sexual harassment
- Numerous changes to trade union rules and protections for members
- Setting up the Fair Work Agency to enforce UK employment law
- Broadening access to Statutory Sick Pay
- Measures that will take effect in 2027 include:
- Reducing the qualifying period for protection from unfair dismissal to 6 months
- Restricting fire and rehire practices
- Strengthening employees’ right to request flexible working
- Employers will need to review their existing contracts, policies and procedures to ensure they comply with the new Act, then make any necessary changes before the relevant requirements come into force
Changes to parental leave in 2026
Currently, mothers are entitled to maternity leave from the first day of their employment, but fathers can only take paternity leave if they have been with their employer for 6 months (26 weeks). There is also a right to unpaid parental leave that protects your employment rights if you have been with an employer for at least a year.
However, from 6 April 2026, employees will have the right to paternity leave and unpaid parental leave from the first day of their employment, bringing this in line with maternity leave rules. Anyone who will be newly eligible under these rules can give notice to their employer from 18 February 2026.
Fathers and partners will also be newly entitled to up to 52 weeks of Bereaved Partners’ Paternity Leave from 6 April 2026 if the mother or primary adopter of their child dies within one year of the child’s birth or adoption.
Changes to protections against harassment and sexual harassment
In 2024, a new duty for employers to prevent sexual harassment in the workplace was introduced. The Employment Rights Act 2025 strengthens this duty in various ways as well as introducing a new duty to prevent more general harassment of employees by third parties.
From 6 April 2026, there will be new protections for whistleblowers reporting workplace sexual harassment. October 2026 will see the duty extended to require employers to take “all reasonable steps” to prevent their employees from being sexually harassed and regulators will be empowered to determine what steps should be considered reasonable. At this time, employers will also be placed under a new duty to not permit their employees to be harassed by third parties.
Changes to trade union rules in 2026
The Employment Rights Act 2025 introduced a lot of changes to trade union rules, all of which are in force already or will come into effect in 2026.
The Act immediately repealed the Strikes (Minimum Service Levels) Act 2023 on 18 December 2025, when the Act received Royal Assent. On 18 February 2026, most of the Trade Union Act 2016 will be repealed, simplifying rules for industrial action and political funds. Employees will also receive new protection against unfair dismissal for taking industrial action.
On 6 April 2026, rules simplifying the process for trade unions to gain recognition will come into force and in August electronic and balloting will be introduced. Then, from October 2026, employers will have a legal duty to inform employees they have a right to join a trade union, unions will have a stronger right of access to workplaces, there will be new rights for trade union representatives, and new protections against unfair practices in the union recognition process and detriments for taking industrial action.
Introducing the Fair Work Agency
On 7 April 2026, the government’s new Fair Work Agency will begin operating as the UK’s enforcement agency for employment rights. It will be able to take action against employers for breaches of employment law, including carrying out investigations, issuing penalties and taking legal action on behalf of employees.
Other key changes to UK employment law in 2026
Other new employment rules for 2026 will include:
From 6 April
- The maximum penalty employers must pay to employees for failing to properly consult on collective redundancies (the ‘protective award’) will double from 90 day’s gross pay up to 180 days’ gross pay
- Removing the lower earnings limit and minimum days of illness to qualify for Statutory Sick Pay (currently £125 per week and more than 3 days respectively)
- Introducing action plans on gender equality and supporting employees through menopause, as well as specific menopause guidance
From October 2026
- The time limit for employees to bring a claim to an employment tribunal will double from 3 months to 6 months
How Longmores can help UK businesses with employment law
Longmores’ Employment Law team works with employers across a wide range of issues. We can review your existing contracts and procedures, advise where there are compliance gaps with the new rules and revise all of your employment documents to resolve any issues.
For expert support and guidance regarding all aspects of UK employment law, please contact Miranda Mulligan who will be happy to advise.
Please note, the contents of this blog are given for information only and must not be relied upon. Legal advice should always be sought in relation to specific circumstances.
