Employment Law in 2026

Jan 8

2 min read

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The year 2025 was a milestone for employment law in the United Kingdom. The most significant event was the passing of the Employment Rights Act 2025 (ERA 2025), which received Royal Assent on 18 December 2025.

The new provisions will be implemented in stages over two years, with key changes coming into effect in 2026.

What reforms await employees and employers?

Key changes introduced by ERA 2025

ERA 2025 brings major changes to employment law. The most important provisions concern unfair dismissal, zero-hours contracts, and other critical areas.

Unfair Dismissal

• The qualifying period for bringing an unfair dismissal claim has been reduced from 2 years to 6 months – a significant change from previous rules.
• A new category of automatically unfair dismissal has been introduced – protecting employees from dismissal for refusing to agree to contractual changes unless the employer can prove the changes were necessary due to serious financial difficulties.

Planned implementation date: January 2027.

Zero-Hours Contracts

The Act aims to tackle so-called “one-sided flexibility.” Eligible workers will have the right to be offered guaranteed hours that reflect their actual working patterns.They will also gain the right to reasonable notice of shift changes and compensation for shifts cancelled or shortened at short notice. These provisions will also apply to agency workers.

Planned implementation date: 2026.

Other Important Changes

• Strengthening the right to flexible working (2027)

Employees will be able to request flexible working arrangements from day one of employment, without a qualifying period. Employers will be required to provide a clear justification for any refusal, increasing transparency and fairness.
• Sick pay entitlement from the first day of absence (April 2026)

Statutory Sick Pay (SSP) will be payable from the first day of illness, removing the previous waiting period.
• Expanded bereavement leave for close family members (2026–2027)

Bereavement leave will now cover a wider circle of close relatives, not just parents. This ensures employees can take time to grieve and manage family matters without fear of losing income or employment.
• Improved protection for pregnant employees and maternity rights (2027)

The Act strengthens safeguards against dismissal during pregnancy and after maternity leave. Employers will face stricter obligations to accommodate maternity-related needs, promoting equality and job security.
• New day-one rights to parental and paternity leave (April 2026)

Employees will no longer need to meet a minimum service requirement to qualify for parental or paternity leave. These rights will apply from the first day of employment, supporting family life and work-life balance.