What Employment Law updates are coming in 2026?

A number of important employment law changes are due to come into force, affecting areas such as employee rights, workplace policies, and employer obligations. For businesses without an HR presence, staying compliant can feel overwhelming, yet the consequences of getting it wrong - from employee disputes that lead to a loss of management time to financial penalties - can be costly.

We consulted Katie Ash, Director a & Head of Employment Law at Banner Jones Solicitors to bring an overview of what smaller businesses need to know. Katie has a wealth of experience in representing clients in Employment Tribunals, is a member of the Employment Lawyers Association, and her team has won Employment Team of the Year Award for the last 4 consecutive years.

Katie outlines the key upcoming changes employers need to be aware of, and why now is the right time to review how employment law compliance is managed within your organisation – whether you have HR or not.

April 2026

Unfair Dismissal, Paternity Leave & Parental Leave

• Statutory Sick Pay (SSP) becomes payable from day one, removing both the lower earnings limit and the three-day waiting period; SSP increases to £123.25 per week.
• New day-one rights introduced for paternity leave and unpaid parental leave.

Bereaved Partners’ Paternity Leave

• Will enable bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life. This is unpaid.  

Collective Redundancy

• Protective awards for failing to consult properly will double to 180 days’ pay (up from 90 days).

Fair Work Agency

• A new enforcement body will launch to oversee SSP, national minimum wage, holiday pay, zero-hours misuse, and more.

Salary & Pay Updates

• National Living Wage increases to £12.71/hour for over 21’s; SSP and statutory rates also rise.

Whistleblowing Protections

• Reports of sexual harassment will now be protected under whistleblowing regulations.

Other developments taking effect from August 2026 onwards

Trade Union Reforms & Industrial Action

• August 2026 - Electronic balloting will be introduced. October 2026 - the duty to inform workers of their right to join a trade union will be introduced and there will be a strengthening of trade unions’ right of access to the workplace and protection for participants.

Third-Party Harassment Protection

• October 2026 - New duty to take "all reasonable steps" to prevent third-party harassment to be re-introduced. This will apply to all protected characteristics.

Tribunal Time Limits Extended

• October 2026 - Time limits to bring tribunal claims extended from three to six months.

Tipping

• October 2026 - Employers must pass on 100% of tips.

Fire-and-Rehire Restrictions

• January 2027 - Dismissals for refusing contractual changes (like pay, hours, pensions) will be automatically unfair unless an employer can justify them.

Reduction of unfair dismissal qualifying period

• January 2027 – the qualifying period will be reduced to 6 months for dismissals from 1 January 2027, and the cap on compensatory awards will be removed.

Zero Hours Contracts

• 2027 - ending the exploitative use of zero hours contracts.

Employer Action Plan

With Employment Laws changing, Katie advises that it is imperative that businesses are prepared and aware of the changes. Here are some actions that employers can take to prepare for the Employment Law changes in 2026.

1. Update Policies & Contracts - Revise SSP waiting days, parental leave, redundancy, zero hours, tipping, whistleblowing, flexible working, harassment, and NDA agreements.
2. Train Leadership & HR Teams - Ensure clarity on probation, dismissal procedures, harassment prevention, union-process rules, flexible working, trade union protections, fire-and-rehire policies, and predictable scheduling.
3. Audit HR & Operational Practices -Track redundancies across multiple sites, review zero hours shift patterns, and ready your team for Fair Work Agency audits.
4. Proactively Manage Disputes - Leverage ACAS’ expanded 12-week conciliation window. Encourage early settlement—documenting all correspondence and dispute-handling steps.
5. Monitor Legislative Rollout - Stay informed of phased implementation via ACAS, GOV.UK, and legal alerts. Adjust HR manuals and communication timelines as updates emerge.

Final Thoughts from Katie

“The Employment Rights Act rollout represents the most comprehensive employment law update in generations. Employers in 2026 must become agile - updating policies, thoroughly training staff, engaging in proactive dispute resolution, and readying themselves for intensified scrutiny by the Fair Work Agency. Early planning is key: a robust HR and legal framework can help ensure compliance, foster a positive workplace culture, and reduce risk during this period of transformation.”

To speak to Katie about employment law or to speak to Lucy about recruitment plans please click here.