Employment Law Changes in 2026: What the Employment Rights Act Means for You

Reviewed 30 October 2026 · England and Wales · General information, not legal advice

The Employment Rights Act 2025 is arriving in stages. Day-one sick pay, six-month tribunal time limits and stronger harassment duties already apply; six-month unfair dismissal protection starts on 1 January 2027.

As at 30 October 2026 the Employment Rights Act 2025, which received Royal Assent on 18 December 2025, is about halfway through a staged rollout that runs to the end of 2027. Already in force: statutory sick pay from the first day of sickness, day-one paternity and unpaid parental leave, a doubled protective award for botched collective redundancies, the Fair Work Agency, a six-month time limit for most tribunal claims and, from today, a stronger duty on employers to prevent sexual harassment together with liability for harassment by customers. Still to come: the cut in the unfair dismissal qualifying period from two years to six months on 1 January 2027, the removal of the compensation cap on the same day, restrictions on fire and rehire, bereavement leave, limits on non-disclosure agreements, tougher flexible working rules and, with no date yet, the zero-hours reforms. This guide sets out the timetable as confirmed by the government on 22 October 2026, the pay rates for this year and next, and what it means for employees, employers and anyone facing dismissal either side of the new year.

What the Act does and does not do

The Employment Rights Act 2025 is an Act, not a Bill, but most of it only takes effect when the government makes commencement regulations, and the dates have moved more than once. The latest timetable is in the GOV.UK policy paper on implementing the Act, updated on 22 October 2026, and Acas (the Advisory, Conciliation and Arbitration Service) keeps a plain-English summary. Northern Ireland has its own employment law and is not covered by the Act; most of the measures apply in England, Wales and Scotland.

It is worth being clear about what was dropped on the way through Parliament. Unfair dismissal will not become a day-one right and there is no statutory probation period; the government settled on a six-month qualifying period instead. The proposed right to switch off never made it into the Act. The Workers (Predictable Terms and Conditions) Act 2023 was repealed in January 2026 without ever coming into force.

What is already in force

The changes below took effect on the dates shown. The overview of employment law explains the underlying rights they build on.

• 18 February 2026: dismissal for taking part in protected industrial action became automatically unfair whatever its length, the notice unions must give of industrial action fell to ten days, ballot mandates now last twelve months and most of the Trade Union Act 2016 was repealed.
• 6 April 2026: statutory sick pay is payable from the first day of sickness, with no waiting days, and the lower earnings limit was removed so that low earners qualify for the first time, receiving 80 per cent of their earnings where that is less than the flat rate. Paternity leave and unpaid parental leave became day-one rights (paternity pay still needs 26 weeks of service). The maximum protective award for failing to consult on collective redundancies doubled from 90 to 180 days' pay. Reporting sexual harassment became a protected disclosure for whistleblowing purposes, and employers must now keep holiday records for six years.
• 7 April 2026: the Fair Work Agency was created as the single state enforcement body for employment rights. For 2026/27 minimum wage enforcement is still carried out by HMRC on the agency's behalf, and enforcement of holiday pay begins in 2027.
• 25 August 2026: unions may run statutory ballots electronically or in the workplace where the employer agrees.
• 1 October 2026: the time limit for most employment tribunal claims rose from three months less one day to six months less one day for matters arising on or after that date. Earlier matters keep the old limit. Equal pay and statutory redundancy pay claims already had six months.
• 30 October 2026: employers must take all reasonable steps, not merely reasonable steps, to prevent sexual harassment of their staff, and are liable for harassment of staff by third parties such as customers, clients and patients unless they took all reasonable steps to prevent it. Trade unions gained a right of access to workplaces, including digital access, the recognition process was simplified and union equality representatives gained paid time off. The regulations spelling out what counts as reasonable steps are expected in 2027. The guide to discrimination at work covers the harassment rules in detail.

What is still to come

• 1 January 2027: the qualifying period for ordinary unfair dismissal falls from two years to six months and the cap on the compensatory award is abolished, for dismissals whose effective date of termination is on or after that day. The qualifying period for written reasons for dismissal also becomes six months. Employers must give workers a prescribed written statement of their right to join a trade union, and must consult staff before introducing or reviewing a tipping policy.
• March 2027 (the government's stated target, after two postponements): dismissing an employee for refusing a change to their contract, or dismissing and re-engaging them on new terms, becomes automatically unfair in most cases, with a narrow exception for employers in genuine financial distress. Public authorities with 250 or more staff must publish gender pay gap and menopause action plans.
• April 2027: a new right to two weeks of unpaid bereavement leave, including after pregnancy loss before 24 weeks. The threshold for collective redundancy consultation will be counted across the whole organisation rather than at each site. Private and voluntary sector employers with 250 or more staff must publish action plans.
• August 2027: electronic balloting for union recognition and derecognition.
• September 2027: confidentiality clauses that stop a worker speaking about harassment or discrimination become void, subject to exceptions that are being settled in regulations. See the guide to non-disclosure agreements.
• October 2027: an employer refusing a flexible working request must show the refusal is reasonable as well as relying on one of the eight statutory grounds, and must explain the decision in writing. Protection against dismissal for pregnant employees and new mothers returning from maternity leave is strengthened.
• December 2027: umbrella companies come within the definition of employment businesses so that the Fair Work Agency can regulate them.
• No date set: the right of zero-hours and low-hours workers to be offered guaranteed hours reflecting the hours they actually work, reasonable notice of shifts and compensation for shifts cancelled or cut at short notice. The government consulted on the detail until 25 August 2026 and has promised to update the timetable.

Pay rates and limits for 2026/27 and April 2027

The National Living Wage for workers aged 21 and over has been £12.71 an hour since 1 April 2026. The rate for 18 to 20 year olds is £10.85, and the rate for under-18s and for apprentices (those under 19, or 19 and over in the first year of their apprenticeship) is £8.00. In the Budget of 28 October 2026 the Chancellor confirmed the rates from 1 April 2027: £13.21, £11.27 and £8.31 respectively, a rise of about 3.9 per cent.

Other figures for the 2026/27 year: statutory sick pay is £123.25 a week, or 80 per cent of average earnings if lower, for up to 28 weeks; statutory maternity pay is 90 per cent of earnings for six weeks and then £194.32 a week, which is also the flat rate for paternity, adoption and shared parental pay; the cap on a week's pay for statutory redundancy and the basic award is £751, giving a maximum statutory redundancy payment of £22,530; and the compensatory award for unfair dismissal is capped at £123,543 or 52 weeks' gross pay, whichever is lower, for dismissals taking effect on or before 31 December 2026. These limits are uprated each April. The redundancy rights and pay guide shows how the redundancy calculation works.

Dismissed before or after 1 January 2027

The date that matters is the effective date of termination: the day your notice expires or, if you were dismissed without notice, the day the dismissal took effect. If it falls on or before 31 December 2026 you need two years of service to bring an ordinary unfair dismissal claim and any compensatory award is capped. If it falls on or after 1 January 2027 you need six months, and there is no cap. An employee who was given notice in December 2026 that runs out in January 2027 comes under the new rules. Anyone who started work on or before roughly 1 July 2026 will have six months of service on 1 January 2027 and will be protected from that day.

If you are dismissed in the last weeks of 2026 with less than two years of service, do not assume you have no claim. Dismissals for automatically unfair reasons such as whistleblowing, pregnancy, asserting a statutory right or trade union activity need no qualifying service, and neither do discrimination claims. Wrongful dismissal, meaning dismissal without the notice your contract requires, is a breach of contract claim that has never needed qualifying service. The six-month time limit now applies to all of these, and Acas early conciliation remains the compulsory first step. The guides on unfair dismissal and the employment tribunal process explain the stages. Employers tempted to bring forward borderline dismissals before the new year should remember that a rushed dismissal can still be discriminatory or automatically unfair.

What employers should do now

Most of the 2026 changes need payroll and policy updates rather than new contracts. Check that sick pay is being paid from day one at the right rate, that holiday records go back six years, and that paternity and parental leave policies no longer mention service requirements. Carry out and document a sexual harassment risk assessment covering customers and other third parties, train managers, and update the anti-harassment policy to reflect the all reasonable steps standard, because that paperwork is the defence if a claim is made.

Ahead of January, review probation and performance processes so that a decision about a new recruit is made, with a fair procedure, within the first six months, and prepare the written statement about trade union membership that must be issued from 1 January 2027. If a reorganisation depends on changing terms and conditions, take advice before March 2027 on whether it can be done by agreement, because imposing changes by dismissal and re-engagement will shortly be automatically unfair in most cases. Larger employers should begin the pay gap and menopause action plans due in 2027. A fixed-fee review of contracts and handbooks is a common way to do this; the guide on employment contract costs explains what firms charge.

Getting advice

For employees, Acas runs a free helpline and the tribunal remains free to use, with no issue or hearing fees. An employment law solicitor can tell you which rules apply to your dates, calculate what a claim is worth and handle negotiations and the tribunal, charging hourly, by fixed fee for stages, or on a no win no fee basis; trade unions and legal expenses insurance attached to home policies are other routes. For employers, a solicitor can audit policies against the timetable, draft the new documents and advise on the timing of changes. Browse employment law solicitors in Manchester, the solicitors in Leeds or the solicitors near me search to find a firm.

Frequently asked questions

Is unfair dismissal a day-one right now?

No, and it will not be. The original plan for day-one protection with a statutory probation period was dropped in Parliament. Until 31 December 2026 you need two years of service to claim ordinary unfair dismissal; for dismissals taking effect on or after 1 January 2027 you need six months. Automatically unfair dismissals, such as those for whistleblowing or pregnancy, and discrimination claims have never needed any qualifying service and remain available from the first day.

Do zero-hours workers now have a right to guaranteed hours?

Not yet. The Act contains a right for zero-hours and low-hours workers to be offered guaranteed hours reflecting the hours they regularly work, reasonable notice of shifts and payment when shifts are cancelled or cut at short notice, extended to agency workers. The government consulted on the detailed regulations until 25 August 2026 and has not set a start date. Until it does, existing contract terms and the national minimum wage rules are what apply.

What is the National Minimum Wage from April 2027?

The Budget of 28 October 2026 confirmed that from 1 April 2027 the National Living Wage for workers aged 21 and over will be £13.21 an hour, the rate for 18 to 20 year olds £11.27, and the rate for under-18s and apprentices £8.31. Until then the 2026/27 rates of £12.71, £10.85 and £8.00 apply. Apprentices aged 19 or over who have finished the first year of their apprenticeship are entitled to the rate for their age.

Has statutory sick pay changed?

Yes, from 6 April 2026. Statutory sick pay is now paid from the first day of sickness rather than the fourth, and the lower earnings limit no longer applies, so part-time and low-paid workers qualify. The rate is £123.25 a week or 80 per cent of average weekly earnings if that is less, for up to 28 weeks. The weekly figure is reviewed each April. Employers who have not updated their payroll settings should do so.

Can my employer still fire and rehire me?

For now, yes, provided the dismissal is fair under existing law and the employer follows the statutory Code of Practice on dismissal and re-engagement, which carries a compensation uplift of up to 25 per cent if ignored. From March 2027, on the government's current timetable, dismissing someone for refusing a contract change, or to re-engage them on worse terms, will be automatically unfair in most cases, with a narrow exception for employers in genuine financial difficulty.

I was dismissed in November 2026 with 18 months of service. Can I claim?

Not for ordinary unfair dismissal, because your effective date of termination falls before 1 January 2027 and the two-year rule still applies to it. You may still have a claim if the real reason was automatically unfair, for example whistleblowing, pregnancy or asserting a statutory right, or if the dismissal was discriminatory, and you can claim notice pay you were not given as wrongful dismissal. You have six months less one day to start Acas early conciliation.

Related guides

• Unfair Dismissal: Your Rights, Time Limits and Compensation
• Redundancy: Your Rights, Consultation and Statutory Redundancy Pay
• How to Make an Employment Tribunal Claim: Acas, Time Limits and Hearings
• Discrimination at Work: Protected Characteristics and How to Make a Claim
• What Is Employment law?
• How much does an employment contract cost?

This guide describes the law in England and Wales as at 30 October 2026. It is general information, not legal advice about your situation; the law and the figures it quotes change, so check the position with a solicitor before acting. LawFirms.co.uk is a directory and does not provide legal services.