UK Employment Law Changes Coming in 2026 — What Employers & Employees Need to Know

The Employment Rights Bill brings one of the largest modernisations of UK employment law in years. Many reforms take effect from April 2026, with further measures expected in October 2026 and beyond. This article summarises the practical changes, what they mean, and immediate actions employers should take.

Key Changes (April 2026)

1. Statutory Sick Pay (SSP) — Day One Payable

From April 2026, SSP will be payable from day one of sickness. The reform also abolishes the lower earnings limit that previously excluded the lowest-paid workers — expanding eligibility significantly.

2. Parental Leave & Paternity — Day-One Rights

Paternity leave and certain parental leave entitlements become day-one rights. Shared parental leave rules are also under review to improve flexibility for parents.

3. Redundancy Consultation Awards — Bigger Penalties

The maximum protective award for failing to consult properly on collective redundancies will increase — doubling from 90 to 180 days’ pay. Employers must take consultation duties much more seriously.

Other Important April 2026 Reforms

• Whistleblowing & harassment: Sexual harassment disclosures become protected whistleblowing.
• Trade union reform: Easier recognition routes and electronic ballots; stronger statutory access rights.
• New enforcement: A Fair Work Agency will centralise enforcement of SSP, holiday pay and other core employment rights.

Major Changes Expected October 2026

• Fire-and-rehire: Heavily restricted; only permitted in exceptional circumstances after genuine consultation.
• Tipping rules: Employer consultation required and policies must be reviewed regularly.
• Harassment duties: Employers must take “all reasonable steps” to prevent third-party harassment.
• Tribunal time limits: Many claim windows likely extended (e.g., 3 to 6 months).
• Zero-hours protections: Stronger rights toward more predictable schedules for casual workers.

What Employers Must Do Now

1. Audit contracts & policies — update SSP, parental leave, redundancy and tipping policies.
2. Update redundancy procedures — ensure proper collective consultation workflows and recordkeeping.
3. Train managers on whistleblowing, harassment prevention and new consultation standards.
4. Review casual workforce practices and rostering for zero-hours compliance.
5. Prepare for Fair Work Agency audits — centralised enforcement means higher scrutiny.

What Employees Should Expect

• More immediate protections for sickness and early parental leave.
• Stronger safeguards for whistleblowers and harassment victims.
• Better prospects for predictability and fairness in casual work.

Quick Timeline Summary

April 2026: SSP day one; day-one paternity/parental leave; higher redundancy awards; whistleblowing/harassment reforms; Fair Work Agency.

October 2026: Fire-and-rehire restrictions; tipping policy rules; extended tribunal limits; zero-hours protections.

2027: Six-month qualifying period for unfair dismissal (not day one); other reforms may follow.

Need Help Preparing?

If you’d like a compliance checklist, updated contract templates, or manager training materials tailored to your business, I can prepare those next — tell me the size of your business (SME, mid-market or enterprise) and I’ll tailor a pack for you.