New Year, New Employment Rights Act
The start of a new year is an ideal opportunity for employers to review their current workforce practices and ensure their business is legally compliant. With employment law continuing to evolve at pace, many employers are understandably focused on what legislative changes lie ahead and how these may impact their organisation.
Employment law changes frequently, and keeping up to date with new legislation and Employment Tribunal decisions is essential for employers seeking to minimise risk and avoid costly disputes. However, 2026 will mark a particularly significant year for employers, following the introduction of the long-awaited Employment Rights Act 2025, which came into force shortly before Christmas.
The new Act introduces a series of substantial changes that will be phased in over the coming years. The first of these reforms will take effect from April 2026, with further changes following in October 2026.
Key Employment Law Changes from April 2026
From April 2026, employers will need to prepare for the following obligations:
- Employees will qualify for Statutory Sick Pay from day one of sickness absence
- Paternity leave and unpaid parental leave will be available from the first day of employment
- Employers will face increased liability of up to 180 days’ pay per employee for failure to consult in collective redundancy situations (double the current maximum award)
- Employees raising sexual harassment disclosures will receive protection under whistleblowing legislation
Further Changes from October 2026
Additional employer responsibilities will come into force later in the year, including:
- Enhanced duties on employers to prevent sexual harassment in the workplace
- A new obligation to prevent third-party harassment, including by customers or clients
- A ban on dismissal and re-engagement practices (commonly known as “fire and rehire”)
- Extended Employment Tribunal time limits, increasing from three months to six months
- Strengthened trade union rights
Further reforms are expected in 2027, making it vital for employers to act now. Reviewing existing employment contracts, workplace policies, redundancy procedures, and HR processes will be key to ensuring ongoing compliance with the new legislation.
Employment Law Support for Employers
We regularly advise employers on reviewing and updating their employment documentation to ensure it remains legally compliant and fit for purpose. This includes drafting new policies and contracts where documentation is outdated or missing altogether.
However, with the Employment Rights Act 2025 significantly increasing employer obligations, proactive legal advice is more important than ever for businesses.
Workplace practices have already undergone major changes in recent years. With the introduction of enhanced employee rights and stricter employer duties, businesses that stay ahead of employment law developments will be best placed to avoid disputes, Tribunal claims and financial penalties.
Careful planning, forward-thinking HR strategies and access to expert employment law advice for employers are essential. Our employment law team is here to support businesses through these changes and help manage any employment challenges that arise.
