Employment Law Update

The Employment Rights Act 2025, which received Royal Assent in December 2025, brings the biggest shake-up to UK employment law in a decade, with major changes phased in during 2026 and 2027. Key updates include “day one” rights for paternity/sick pay in April 2026, a new six-month qualifying period for unfair dismissal (expected Jan 2027), restrictions on “fire and rehire,” and the creation of the Fair Work Agency.
Key 2026 Employment Law Changes (April 2026 Focus)
  • Statutory Sick Pay (SSP): Becomes a “day one” right, removing the lower earnings limit.
  • Paternity Leave: Becomes a “day one” right, removing the qualifying period.
  • Parental Leave: Unpaid parental leave will be available from day one of employment.
  • Fair Work Agency: Launch of a new body to enforce holiday pay, sick pay, and other rights.
  • Collective Redundancy: The protective award for failing to consult on collective redundancies doubles from 90 to 180 days’ pay.
  • Sexual Harassment: Employers have a strengthened legal duty to take proactive steps to prevent workplace harassment. 
Upcoming Changes (2026-2027)
  • Unfair Dismissal (Expected Jan 2027): The qualifying period for unfair dismissal will change from two years to a new six-month rule.
  • “Fire and Rehire” Restrictions: New, strict limitations on firing employees and rehiring them on worse terms, allowed only in limited financial circumstances.
  • Zero-Hours Contracts: Measures to end exploitative zero-hours contracts, including requirements for guaranteed hours. 
Other Recent Developments

 

  • Carer’s Leave: A new right to up to five days’ unpaid leave per year for carers.
  • Redundancy Protection: Expanded protection against redundancy for pregnant employees and new parents.
  • NDAs: Statutory limits on the enforceability of Non-Disclosure Agreements (NDAs) came into force on October 1, 2025.