Julianna Forsyth
Senior Engagement Lead - Risk Consulting
UK employers are facing a significant wave of employment law reform over the next two years. The government’s employment changes programme is designed to strengthen worker protections, modernise workplace rights, and improve enforcement. For employers, the key message is simple: review policies early, plan for phased implementation, and make sure managers understand what is changing and when.
The main changes at a glance
A number of reforms are already in force or beginning to take effect, with more due to follow through 2026 and 2027. The changes touch several core areas of employment practice, including:
- statutory sick pay;
- family leave;
- unfair dismissal;
- harassment;
- trade union rights;
- tribunal deadlines;
- and zero-hours arrangements.
One of the most immediate shifts is in statutory sick pay (SSP). SSP is now available from the first day of absence, and the lower earnings limit has been removed, which means more workers qualify. Employers should check payroll systems and absence policies to ensure they reflect the new rules.
Family-related rights have also expanded. Paternity leave and unpaid parental leave are now day-one rights, removing the previous qualifying periods. There is also a new bereaved partner leave entitlement for employees dealing with the death of a child’s mother or primary adopter. These changes mean handbooks, line manager guidance, and leave request processes may all need updating.
Employment protection is also being strengthened. New measures include increased whistleblowing protection, enhanced redundancy-related compensation in some cases, and broader obligations on employers to retain holiday pay records for six years. Employers should ensure that internal reporting channels, redundancy processes, and recordkeeping practices are robust.
Key dates employers should track
The reforms are being introduced in stages, so timing matters.
By 31 August 2026
- Electronic and workplace balloting for statutory trade union ballots is due to be available.
From 1 October 2026
- The time limit for bringing most employment tribunal claims is expected to increase from three months to six months. That gives employees more time to raise claims and means employers may need to retain relevant records for longer.
From 30 October 2026
- The duty on employers to prevent sexual harassment is set to become stronger. Instead of taking “reasonable steps,” employers will be required to take “all reasonable steps” to prevent sexual harassment in the workplace. Employers are also expected to face liability where workers are harassed by third parties. This makes risk assessments, training, reporting mechanisms, and prompt investigation procedures even more important.
- Around the same date, trade union reforms are also due to take effect. This includes a new right for unions to access workplaces and a duty on employers to inform workers of their right to join a union.
From 1 January 2027
- Major reforms are expected to come into force, including changes to unfair dismissal protection and fire-and-rehire practices. The government has signalled that unfair dismissal protection will apply after six months’ service rather than the current two years. Fire and rehire, where employees are dismissed and re-engaged on revised terms, is also expected to be tightly restricted and treated as automatically unfair except in limited circumstances. In addition, the cap on compensatory awards in unfair dismissal cases is due to be removed.
What employers should do now
Employers should not wait until the last minute. A sensible next step is to review employment contracts, policies, and handbooks, especially documents last updated before late 2024. Particular attention should be paid to:
- harassment policies;
- family leave rules;
- recordkeeping;
- grievance processes;
- and manager training.
It is also worth identifying any areas where operational practice may need to change, such as absence management, use of zero-hours contracts, or handling consultation and redundancy exercises. Even where reforms are still months away, early preparation will reduce compliance risk and help avoid rushed changes later.
Bottom line, stay informed
The employment rights agenda represents one of the biggest shifts in UK workplace regulation in years. For employers, the priority is to stay informed, map the timeline, and prepare policies and people before each change takes effect. Those who act early will be best placed to stay compliant and manage the transition smoothly.
The information contained herein is based on sources we believe reliable and should be understood to be general insurance and risk management information only. The information is not intended to be taken as advice and cannot be relied upon as such. Statements concerning legal, tax or accounting matters should be understood to be general observations based solely on our experience as insurance brokers and risk consultants and should not be relied upon as legal, tax or accounting advice, which we are not authorised to provide.
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