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The UK Employment Rights Act: A New Era for Workers and Employers (2026 and Beyond)

12 January 2026

Change is coming to workplaces across the UK, and it’s bigger than many businesses and employees realise.

The Employment Rights Bill has now passed through Parliament and become the Employment Rights Act 2025, setting in motion what is widely being described as the most wide ranging overhaul of UK employment law in decades.

But what does that really mean? And how will life at work actually change from 2026 onwards? Let’s break it down in a way that’s clear, compelling and practical.

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A New Foundation for UK Workplace Rights

At its core, the Employment Rights Act (ERA) is about rebalancing workplace relationships, making work fairer for employees while giving employers time to prepare for change. The reforms cover:

  • protections against unfair dismissal
  • new family-friendly leave rules
  • clearer rights for trade union activity
  • improved pay and sick leave standards
  • stronger safeguards against harassment
  • changes to zero-hours and casual work contracts.

These changes are being introduced on a phased basis across 2026 and 2027, rather than all at once. That’s good news, no employer is expected to adapt overnight.

The Timeline: What’s Happening When

Here’s a roadmap to the key stages of reform, and why each matters.

Late 2025: Wrapping Up Parliamentary Debate

Before reforms can take effect, the Bill had to be finalised in Parliament. In December 2025, negotiations over key points — like how long someone must work before they can sue for unfair dismissal — dominated the political spotlight. Lawmakers settled on a six-month qualifying period (down from two years, but not quite “day one” as once proposed).

Early 2026: A Fresh Start for Rights at Work

From April 2026, a number of immediate changes are planned to kick in:

✔ Strengthened Sick Pay

Statutory sick pay (SSP) will become more inclusive and quicker:

  • No 3-day waiting period before payments start
  • Lower-paid workers (including those earning under £123/week) will be entitled to SSP at 80% of their weekly wage.

This is a major win for many low-income workers, who previously struggled to access statutory sick pay at all.

✔ Day-One Family Leave

Two important entitlements will no longer depend on tenure:

  • Paternity leave
  • Unpaid parental leave

From the moment someone starts a new job, they’ll be able to take these forms of family leave.

✔ The Fair Work Agency Launches

Also in April 2026, the government will formally launch a new enforcement body, the Fair Work Agency — aimed at strengthening compliance and helping workers understand and assert their rights.

October 2026: A Bigger Shift in Workplace Protection

As we move further into the year:

✔ Tribunal Time Limits Extended

Employees will have up to six months (twice as long as now) to bring many claims to an employment tribunal. This aims to give claimants more time to prepare their cases.

✔ Restrictions on Fire & Rehire

Changes will limit aggressive ‘fire and rehire’ tactics by employers, especially when redeploying employees onto different contracts.

✔ Protection from Being Replaced by Non-Employees

It will become automatically unfair dismissal if an employee is dismissed and replaced by someone who isn’t an employee, but does the same job.

2027 and Beyond: The Final Pieces

Some of the most transformative reforms happen later:

🕐Unfair Dismissal Rights at Six Months

From January 2027, employees will be able to bring unfair dismissal claims after just six months of service — a huge change from the current two year requirement.

This doesn’t just change the legal threshold, it reshapes how employers manage probation, performance and retention from day one.

🏢Flexible Working Rights

Requests for flexible working will be even harder for employers to refuse, as only specific statutory grounds and reasonableness tests will apply.

❤️‍🩹Bereavement & Compassionate Leave

New protections for bereavement — including loss before 24 weeks of pregnancy — will also roll out after consultations conclude.

Why This Matters

Many reforms in the Employment Rights Act are not just legal tweaks, they reflect a broader social shift in how work, family life and wellbeing are valued.

✔ Workers will have earlier access to rights
✔ Low-paid employees get support previously unavailable
✔ Employers get clearer rules on union engagement
✔ Serious workplace issues like harassment get harder legal standards

For employers, the message is clear: start preparing now. Review contracts, policies and HR practices to align with the new framework before the staged roll outs begin.

In Summary

The Employment Rights Act is more than legislation, it’s a workplace revolution in slow motion, unfolding from 2026 into 2027 and beyond. While the phased timeline gives organisations breathing space, the breadth of change means HR teams, business owners and employees all need to stay informed and proactive.

Whether you’re an employer planning ahead, or a worker wondering how your rights will strengthen these reforms are set to reshape the world of work in the UK for years to come.

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