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The Employment Rights Act 2025:
What Employers Need to Know in 2026
The Employment Rights Act 2025 received Royal Assent on 18 December 2025, marking one of the most significant overhauls of UK employment law in years. For employers and HR professionals, the Act introduces a wide range of reforms — many of which will take effect across 2026 and beyond — requiring careful planning across HR, payroll, employee relations and compliance functions.
In this article we focus on the first tranche of changes impacting 2026, provide practical actions for employers, and signpost further developments later in the year. For an introduction to the measures and their implications, see our accompanying HM Sofa Sessions video.
What Has Happened Already
With Royal Assent in December 2025, the Act became law. While most provisions are yet to take effect, some key industrial relations rules changed immediately. Notably, minimum service level rules for strike action — introduced in previous law — were repealed.
Changes Taking Effect in Early 2026
Industrial Action and Trade Union Reform (from February 2026)
A core focus of the Act’s early implementation is on industrial relations:
The period for giving notice of industrial action reduces to 10 days (from 14) and strike mandates will now remain valid for 12 months (previously six).
A simple majority will suffice for trade union ballots.
Mandatory requirements for picket supervisors are removed.
Protections for employees participating in union action will extend beyond the current 12-week limit.
Certain restrictions on industrial action, including “minimum service levels”, have been removed.
These changes are likely to alter the dynamics of industrial disputes, potentially making coordinated action easier and extending legal protections for participating employees. Employers should review their industrial relations strategies and consider how engagement mechanisms such as staff forums, consultative structures and internal communications support workplace stability.
April 2026: Family Leave, Sick Pay and Enforcement
Statutory Sick Pay (SSP)
The Act abolishes the lower earnings limit and the waiting period for SSP, meaning most workers will qualify from the first day of absence, increasing eligibility and potentially short-term absence costs.
Family Leave Rights
Paternity leave and unpaid parental leave become rights from day one of employment.
Bereavement leave and expanded family rights, including protections for pregnancy loss and enhanced dismissal protections for pregnant employees and parents returning from leave, are included in the broader reform package.
Fair Work Agency (FWA)
The FWA will launch, consolidating enforcement of national minimum wage, holiday pay, SSP and other worker rights, and will have the authority to bring claims on behalf of workers and issue penalties for non-compliance.
Redundancy Consultation and Whistleblowing
The protective award for failure to properly consult in collective redundancy situations will double, increasing exposure for procedural missteps.
Complaints of sexual harassment will be explicitly protected as qualifying disclosures under whistleblowing law, and employers should update policies accordingly.
Why These 2026 Changes Matter
The raft of reforms coming into force in 2026 will have practical consequences for many workplaces:
Cost and administration: Wider SSP eligibility and enhanced family rights may increase employer costs and administration.
Compliance scrutiny: The FWA’s proactive enforcement posture means holiday pay, SSP calculations and other rights may face greater scrutiny.
Employee relations: Industrial action reforms and union recognition changes signal a shift in the employment relations framework.
Even if your organisation rarely deals with industrial action or family-friendly rights, these changes can arise suddenly — and without robust planning they can catch HR teams off guard. Early awareness and review of relevant HR policies and processes will reduce risk and improve readiness.
Looking Ahead: October 2026 Changes
A second tranche of significant reforms is scheduled for October 2026, including:
A ban on most fire and rehire practices, making them automatically unfair dismissals unless narrow exceptions apply.
A statutory duty for employers to take all reasonable steps to prevent sexual harassment, including from third parties, with updated definitions and standards.
Employment tribunal time limits will extend to six months for most claims.
Further trade union rights, including duties to inform workers of their rights, enhanced union access and reasonable facilities for representatives.
Changes to tipping laws, requiring consultation and periodic review of employer policies.
These and other measures — such as strengthened protections against detriment for industrial action and additional collective bargaining frameworks — will be the focus of future HM Sofa Sessions videos as implementation approaches. For now, employers should familiarise themselves with the timeline and begin planning for these later changes.
Practical Actions for Employers in 2026
To ready your organisation, consider:
Policy and handbook reviews — Update SSP, family leave, whistleblowing, harassment and redundancy consultation policies.
Payroll and HR alignment — Ensure SSP eligibility, holiday pay records and family leave tracking are compliant.
Manager and HR training — Equip key personnel with knowledge on the new rights and compliance obligations.
Industrial relations planning — Review engagement mechanisms, recognise evolving trade union rights and ballot processes.
Beyond these early steps, maintain awareness of secondary legislation, codes of practice and government consultations that will shape the detailed operation of many of these reforms.
The Employment Rights Act 2025 represents a major overhaul of UK employment law, with 2026 implementation steps introducing substantive new rights and enforcement mechanisms. Employers who act early — updating policies, aligning HR/payroll processes, and enhancing managerial awareness — will be better positioned to navigate the changing landscape. Further HM Matters articles and Sofa Sessions will continue to break down upcoming changes as key dates approach.
