The Employment Rights Bill has completed its parliamentary passage and been enacted as the Employment Rights Act 2025, representing one of the most substantial reforms to UK employment law in recent decades.
With the legislation now travelling into the implementation phase, 2026 marks a pivotal year for employers, HR professionals and workers across Britain.
Legislative Milestones & Changes So Far
First published in October 2024, The Employment Rights Bill received Royal Assent in December 2025. The Act was widely promoted as a package of reforms designed to modernise employment law and rebalance rights and responsibilities within the labour market. Major trade unions and legal commentators acknowledged this parliamentary breakthrough as significant for workers, highlighting expanded protections and stronger workplace standards.
Several provisions of the Act are operational as of today, establishing an early wave of reforms. For instance, industrial action and trade union measures came into force on in February 2026, including:
- Protection against dismissal for participating in industrial action became automatically unfair, removing the previous 12-week limit;
- Simplified notice requirements for industrial action ballots;
- Removal of the requirement for picket supervisors;
- The abolition of certain trade union voting support thresholds for ballots beginning after that date.
In addition, from December 2025, the Act repealed minimum service level requirements for strikes introduced by earlier legislation.
Implementation Roadmap for 2026
The UK Government has published an official implementation roadmap for delivering the Act’s remaining provisions. Broadly, changes will continue to be rolled out in stages throughout 2026 and 2027. April 2026 marks the next major phase of implementation, impacting workforce planning, payroll and HR policy. Some key changes expected at this stage include:
- Establishment of the Fair Work Agency, consolidating enforcement of employment rights and providing compliance guidance;
- Expanded rights such as day-one parental and paternity leave;
- Removal of the lower earnings limit and waiting period for statutory sick pay for many workers.
These measures will impact workforce planning, payroll and HR policy.
Core Reform Areas
Below are the principal themes of the Act, many of which will have staged entry into force across 2026 and 2027.
- Day One Rights and Unfair Dismissal: The Act establishes the principle that various statutory rights, such as parental, paternity and bereavement leave, apply from the start of employment. While the existing two-year qualifying period for unfair dismissal remains in place for now, the Act provides a framework for future reform.
- Zero-Hours Contracts and Guaranteed Hours: The Act includes measures designed to reduce insecure work by requiring employers to offer guaranteed hours contracts to workers who regularly work predictable hours. Compensation for short notice shift cancellations will also be introduced under future regulations.
- Flexible Working: Reforms will make flexible working standard practice where reasonable, with employers only able to refuse requests on defined grounds.
- Fire and Rehire: The Act will prevent dismissals primarily aimed at imposing less favourable terms, rendering such “fire and rehire” tactics automatically unfair.
- Harassment and Whistleblowing Protections: Employer obligations to prevent harassment are being strengthened, alongside enhanced whistleblowing protections for individuals who report harassment-related concerns.
Implications for Employers and Practitioners
As 2026 marks the first significant phase of implementation, employers should be reviewing policies and preparing for compliance, by:
- Updating employee handbooks for day-one rights and flexible working policies;
- Reviewing changes to Statutory Sick Pay and payroll processes;
- Reviewing harassment prevention and reporting procedures;
- Assessing how trade union and industrial action protections affect workplace relationships.
Northern Ireland: Separate but Influenced
Employment law in Northern Ireland remains a devolved matter. The Northern Ireland Department for the Economy has conducted consultations on similar proposals to those in the Employment Rights Act, including guaranteed hours and expanded written terms rights.
Although legislative timelines differ in Northern Ireland, developments in Britain are likely to influence policy decisions. Employers with operations in both jurisdictions should monitor legislative progress closely, stay informed and be ready to adapt to the forthcoming changes.
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
McCay Legal are on hand for all of your Employment Law needs, Tel; 02871 370705
Written By Grainne McKenna
