Employment Rights Act implementation: looking back and looking forward

Whilst much attention has understandably focused on the reforms still to come, employers should take this opportunity to ensure that changes already implemented have been effectively embedded within their organisation. Equally, organisations should now be preparing for the next phase of reforms, several of which will require a reassessment of existing policies, procedures and management practices.

This article looks at the key reforms implemented to date and the practical steps employers should be taking in anticipation of further changes expected between now and April 2027.

18 February 2026: Trade Union and Industrial Relations Reforms

A number of trade union reforms came into force on 18 February 2026, including the repeal of much of the Trade Union Act 2016, the simplification of certain industrial action requirements and enhanced protections against dismissal for employees participating in industrial action.

By now, employers should have considered the impact of these reforms on their employee relations strategies. In particular, organisations should:

• review internal guidance relating to industrial action
• ensure HR teams understand the revised legal framework
• assess the effectiveness of existing communication channels with employee representatives
• keep developments under review in light of further trade union reforms expected

For employers with recognised trade unions, maintaining constructive employee relations and early engagement will remain particularly important.

6 April 2026: Statutory Sick Pay Reforms

From 6 April 2026, Statutory Sick Pay became payable from the first day of sickness absence and the Lower Earnings Limit was removed, extending eligibility to workers who were previously unable to qualify.

Employers should now have:

• updated payroll systems to reflect the revised entitlement rules
• reviewed sickness absence procedures and reporting requirements
• considered the impact of the changes on absence management processes
• provided managers with appropriate training regarding attendance management and employee wellbeing

Particular consideration should be given to whether current absence management procedures remain appropriate in light of the wider entitlement to SSP.

6 April 2026: Day One Paternity Leave and Unpaid Parental Leave

Eligible employees are now entitled to paternity leave and unpaid parental leave from the first day of employment.

Employers should ensure that:

• family-friendly policies accurately reflect the new position
• HR processes and template correspondence have been updated
• managers understand the practical implications of employees becoming eligible for these rights immediately upon commencement of employment

6 April 2026: Enhanced Whistleblowing Protections

The whistleblowing framework has been expanded to strengthen protections for workers raising concerns relating to sexual harassment.

Employers should use this as an opportunity to review whether existing speak-up arrangements remain effective. In particular, organisations should:

• review whistleblowing policies and reporting channels
• ensure employees understand how concerns may be raised
• provide refresher training to managers on victimisation risks
• ensure concerns are investigated promptly and appropriately

As workplace culture continues to receive increased regulatory attention, employers should focus not only on having appropriate policies in place but also on ensuring employees have confidence in using them.

6 April 2026: Increased Collective Redundancy Awards

The maximum protective award for failures to comply with collective redundancy consultation requirements doubled from 90 days’ pay to 180 days’ pay.

This reform significantly increases the financial consequences of non-compliance. Employers should therefore:

• review redundancy and restructuring procedures
• ensure managers understand when collective consultation obligations arise
• maintain comprehensive consultation records
• seek HR and legal input at an early stage of any workforce restructuring exercise

Ensuring procedural compliance throughout any collective consultation process is now more important than ever.

1 October 2026: Employment Tribunal Time Limits

Employment Tribunal limitation periods have now increased from three months to six months for many claims.

Employers should prepare for a longer period of potential litigation risk by:

• reviewing document retention procedures
• ensuring disciplinary, grievance and investigation records are retained appropriately
• maintaining comprehensive records of employment decisions
• ensuring key documentation can be readily accessed if a claim is brought several months after employment has ended

October 2026: Enhanced Duties to Prevent Sexual Harassment

Further reforms are expected to strengthen employers’ obligations to prevent workplace sexual harassment, including more proactive preventative duties and changes relating to liability for third-party harassment in certain circumstances.

Employers should now be considering whether existing arrangements would withstand scrutiny. Practical steps include:

• reviewing dignity at work and anti-harassment policies
• refreshing employee and manager training
• undertaking workplace risk assessments
• considering risks arising from customers, clients and contractors
• ensuring reporting and investigation procedures remain robust.

The direction of travel is clear: employers will increasingly be expected to demonstrate the preventative measures they have taken rather than simply respond once issues arise.

Our worker protection compliance toolkit can help you prepare. For more information, register your interest here:

Late 2026 and Early 2027: Further Trade Union Reforms

The Government’s wider programme of trade union reform is expected to continue, including measures relating to electronic balloting, workplace balloting, rights of trade union access to workplaces and reforms to statutory recognition procedures.

Ahead of implementation, employers should:

• review arrangements for engagement with trade unions and employee representatives
• consider how workplace access requests will be managed
• assess employee relations strategies
• ensure managers understand the evolving industrial relations framework

January 2027: Unfair Dismissal Reform

The current two-year qualifying period for ordinary unfair dismissal claims is expected to reduce to six months. This is likely to represent one of the most significant reforms for employers.

In anticipation of these changes, employers should:

• review recruitment and selection processes
• ensure probationary periods are clearly defined and documented
• introduce structured probation review meetings
• address conduct and performance concerns at an early stage
• improve management record keeping and documentation.

Although employers are expected to retain a degree of flexibility during probationary periods, reliance on the current two-year qualifying period will no longer be possible.

March 2027: Fire and Rehire Restrictions

New restrictions are expected to significantly limit the circumstances in which employers may dismiss and re-engage employees for the purpose of imposing certain contractual changes.

Employers should begin reviewing:

• contractual flexibility and variation clauses
• existing approaches to contractual change
• consultation processes for organisational change projects
• alternative methods of securing agreement to changes in terms and conditions

Organisations contemplating significant workforce change programmes during 2027 should consider these reforms at an early stage.

Up to April 2027: Zero-Hours and Workforce Planning Reforms

Consultation continues on reforms affecting zero-hours and low-hours workers, including guaranteed hours, reasonable notice of shifts and compensation for cancelled, moved or curtailed shifts. The Fair Work Agency is also expected to assume an enhanced enforcement role.

Employers should begin assessing:

• the extent of their reliance on casual, bank and zero-hours workers
• workforce scheduling and rostering arrangements
• potential costs associated with shift cancellations
• whether existing labour models are likely to remain sustainable under the proposed framework

Looking ahead

Viewed collectively, the Employment Rights Act reforms represent a significant shift towards greater worker protection, enhanced procedural obligations and increased scrutiny of employer decision-making.

For employers, the challenge is no longer simply understanding the reforms. The focus must now be on implementation: ensuring that policies, procedures and management practices have been updated to reflect changes already in force whilst preparing for the more significant reforms due in 2027.

Those organisations that invest time now in manager training, probation processes, workforce planning and employee relations are likely to be best placed to navigate the next phase of implementation and minimise the legal and operational risks arising from these changes.