2026 is one of the most significant years for UK employment law in a generation. The Employment Rights Act 2025, which received Royal Assent on 18 December 2025, is being rolled out in phases across 2026 and 2027. For business owners and HR teams, the changes are broad, the timeline is tight, and the cost of non-compliance is rising.
This guide summarises the key changes coming into effect in 2026, when they apply, and what you need to do to prepare.
Why 2026 Is a Turning Point for Employers
The Employment Rights Act 2025 is over 300 pages long and introduces sweeping reforms across almost every area of employment law. Changes are being phased in over 2026 and 2027, with the most significant tranche beginning in April 2026. Employment lawyers and HR professionals are already warning that many employers are unprepared — and the new Fair Work Agency, which launches on 7 April 2026 to oversee compliance, will have real enforcement powers.
April 2026: The Key Changes
Statutory Sick Pay — Major Reform
From April 2026, Statutory Sick Pay (SSP) will be payable from the first day of absence. The previous three-day waiting period is removed. At the same time, the lower earnings limit is abolished, meaning more employees will qualify for SSP. Employers need to update their absence management policies and payroll systems before April.
Day One Rights for Family Leave
Paternity leave and unpaid parental leave both become day one rights from April 2026. Employees who previously needed 26 weeks of service to qualify for paternity leave, and 12 months for unpaid parental leave, will now be entitled to these from their very first day of employment. Notice of intention to take leave can already be given from 18 February 2026.
Collective Redundancy Protective Award Doubles
From 6 April 2026, the maximum protective award for failure to collectively consult on redundancies doubles from 90 days’ pay to 180 days’ pay per employee. Employers planning any significant restructuring need to ensure collective consultation processes are followed correctly and fully documented.
Sexual Harassment as a Protected Disclosure
From 6 April 2026, sexual harassment will be a qualifying disclosure under whistleblowing law. Employees who report sexual harassment will be protected from detriment and unfair dismissal. Employers should review their whistleblowing and anti-harassment policies immediately.
Equality Action Plans
From April 2026, employers will be expected to create voluntary action plans covering gender pay gaps and menopause support. These become mandatory in 2027. Getting ahead of this now — particularly the menopause provisions — signals strong governance and reduces risk as mandation approaches.
National Minimum Wage Increase
From 1 April 2026, the National Minimum Wage for workers aged 21 and over rises to £12.71 per hour. All employment contracts and payroll arrangements must reflect this change from that date.
Looking Ahead: What’s Coming in 2027
The most significant change — the reduction of the qualifying period for unfair dismissal from two years to six months — is currently expected in January 2027. This will effectively give employees full unfair dismissal protection within their first six months of employment, and the compensatory cap on unfair dismissal awards is also expected to be removed at the same time. These changes will have a profound impact on how employers manage performance, probation, and dismissal.
Employers should begin preparing now. Any employee hired after June 2026 will qualify for unfair dismissal protection from January 2027, regardless of their length of service. Reviewing your probationary review processes and ensuring robust documentation is in place from the outset is essential.
What Employers Should Do Right Now
- Audit your existing employment contracts and policies against the April 2026 changes
- Update your absence management policy to remove the three-day SSP waiting period
- Review your redundancy consultation process and update documentation templates
- Ensure all managers are trained on the new family leave day one rights
- Begin developing your gender pay gap and menopause action plans ahead of mandation in 2027
- Review your whistleblowing policy to include sexual harassment as a protected disclosure
- Start reviewing your disciplinary and performance management processes in preparation for the January 2027 unfair dismissal changes
The Risk of Doing Nothing
With the new Fair Work Agency beginning operations on 7 April 2026, compliance enforcement will be more active than before. The Agency will oversee compliance with minimum wage, sick pay, and holiday pay requirements, with real powers to investigate and penalise non-compliant employers.
Beyond regulatory risk, tribunal claim volumes are already rising sharply — up 33% in Q2 2025/26 compared to the previous year. Employers who do not update their documentation and policies ahead of the April changes face a significantly elevated risk of claims that, in many cases, they will struggle to defend.
How Clear Path Solutions Can Help
Keeping up with the pace of employment law change is one of the biggest challenges facing UK business owners today. Clear Path Solutions provides CIPD-qualified HR support tailored to your business, covering contract reviews, policy updates, manager training, and ongoing compliance advice. We work as an extension of your team — so you always have expert guidance when you need it.
Don’t wait for a problem to happen. Contact Clear Path Solutions today to review your compliance ahead of April 2026: sales@clearpathuk.co.uk
