Employment Rights Bill – 2026 Update

Happy New Year!  The end of 2025, saw the Employment Rights Bill receive Royal Assent on 18 December, when the King formally agreed to make the Bill into an Act of Parliament (Employment Rights Act 2025) which means it has become law.

The Act will introduce additions and amendments to existing legislation, including the Employment Rights Act 1996, over a period of 2 years from 2026.

The majority of the changes have not happened yet, however are due to happen as soon as February 2026.

What’s changed so far?

Minimum service level rules for strikes were removed on 18 December 2025.

What’s changing in February 2026?

Increased dismissal protection for industrial action

Dismissal for taking part in industrial action will become ‘automatically unfair’. This will remove the current 12-week limit for claiming unfair dismissal.

Trade union activity

• the time needed to give notice of industrial action will reduce to 10 days, instead of 14 days
• unions will need a simple majority to vote for industrial action
• picket supervisors will no longer be required
• industrial action mandates will last for 12 months, instead of 6 months
• industrial action and ballot notices will be simplified
• political fund rules will change

What’s changing in April 2026?

Paternity leave and unpaid parental leave

• paternity leave will become a ‘day one right’, allowing someone to give notice of leave from the first day of employment – currently someone must have worked for their employer for 26 weeks
• ordinary parental leave will also become a day one right
• the restriction on taking paternity leave after shared parental leave will be removed

Sick pay

• statutory sick pay (SSP) will be paid from the first day of illness
• the lower earnings limit will be removed

Collective redundancy protective award

The maximum ‘protective award’ for failure to consult in collective redundancy will double from 90 days’ pay to 180 days’ pay.

Whistleblowing protections for sexual harassment

Sexual harassment will become a ‘qualifying disclosure’ under whistleblowing law. This will mean protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.

Gender pay gap and menopause action plans

Employers will need to create action plans around menopause and gender pay gaps. These will be voluntary from April 2026. 

More trade union changes

• simplifying how a trade union can gain recognition in a workplace
• allowing trade union members to vote electronically

Fair Work Agency

The Fair Work Agency will be established in April 2026, to:

• bring together existing enforcement bodies
• take on enforcement of other employment rights, such as holiday pay and statutory sick pay

What’s changing in October 2026?

In most cases, how these changes will be implemented is subject to government consultations.

Dismissal and rehire

Dismissing someone then rehiring them on worse terms and conditions will become an automatically unfair dismissal in most cases.

Harassment

• employers will be liable for harassment from third parties, for example customers or clients, unless they have taken all reasonable steps to prevent it happening
• employers will need to take ‘all reasonable steps’ to prevent sexual harassment – current law says ‘reasonable steps’

A change to the law around non-disclosure agreements (NDAs) is also expected. This will void clauses that would prevent workers from alleging or disclosing work-related harassment or discrimination. The date of this change is not known yet.

Tipping

Employers will need to:

• consult with workers or their representatives before creating a tipping policy
• update their tipping policy every 3 years

Employment tribunal time limits

Time limits for making a claim to an employment tribunal will increase from 3 to 6 months for all claims.

More changes to trade union rules

• a new duty for employers to inform workers of their right to join a trade union
• updated rules on a trade union’s right of access to the workplace
• a new right to reasonable accommodation and facilities for trade union representatives carrying out their duties
• a new right to time off for union equality representatives to carry out their duties

Increased protection against detriment for industrial action

Workers taking part in industrial action will be protected against detriment, in addition to unfair dismissal.

Public sector outsourcing ‘two-tier code’

There will be new measures for public sector outsourcing. This is to avoid having different terms and conditions for ex-public sector employees and private sector employees.

New Adult Social Care Negotiating Body

There will be a new negotiating body for adult social care.

What’s changing in December 2026?

One change will happen in December 2026, which is specific to the seafarer industry.  There will be a new mandatory charter for seafarers, with higher standards around health and safety, pay, job security and rest breaks.

Changes in 2027

The government has not announced when in 2027 most of these changes will happen and, in most cases, how the changes are implemented is subject to government consultation, but the changes include:

• Unfair dismissal rights, after 6 months service.
• Increased pregnancy and maternity rights.
• Statutory Bereavement Leave.
• Zero-hours contracts right to guaranteed hours.
• Compensation for cancelled shifts.
• Flexible Working good practice is to become a legal requirement.
• Sexual harassment – law to specify “reasonable steps.”
• Mandatory gender pay gap and menopause action plans.
• Collective redundancy changes.  
• Trade Union changes.
• Regulation of umbrella companies.
• A new duty for employers to inform workers of their right to join a trade union.

We will continue to keep you updated as and when these changes become effective and for Spectra clients, we will be updating your Employee Handbooks and Contracts accordingly. If you have any questions, please do not hesitate to contact us.