Changes to UK Employment Law
13 May 2026
Published in: Member News
New UK employment laws in 2026, primarily under the Employment Rights Act
Changes to UK Employment Law:
New UK employment laws in 2026, primarily under the Employment Rights Act, bringing significant changes effective from April 6, 2026, including “day-one” rights for paternity and parental leave, removal of the Statutory Sick Pay (SSP) earnings threshold, and strengthened whistleblowing protections. Unfair dismissal protection eligibility will shrink to a 6-month probation from 1 January 2027.
From the UK Government:
Over 15 million people across the UK benefit from new worker protections, including those on the lowest pay and in the most insecure jobs. New rights confirmed including day one paternity leave and parental leave, statutory sick pay, protections for pregnant workers, increased protection from unfair dismissal, an end to exploitative zero hours contracts, and a new right to bereavement leave.
Government to continue work with business and workers on how reforms are implemented, with changes introduced gradually over a two-year period. Over 15 million workers across the UK will benefit from a modern framework for workers’ rights that helps more people stay in work, supports productivity, and boosts living standards – as the Employment Rights Act has become law today.
New day one rights will now allow 32,000 more dads and partners each year to take paternity leave and 1.5m more parents to take unpaid parental leave. This will support working families to juggle the modern demands of work with raising children. New statutory sick pay reforms mean up to 1.3m low paid employees will now be able to take time off when they are sick without worrying about not being paid. Employees who are going through the toughest personal circumstances will also be afforded dignity at work, with up to 2.7m employees a year to gain the right to the new bereavement leave entitlement.
The number of workers on zero hours contracts has risen over the past decade to over 1 million. These workers, who are often the lowest paid in society, will now benefit from new protections against exploitative contracts – ranging from the right to a contract that reflects the hours they work, to compensation if their shifts are cancelled at short notice. And while people used to have to wait two years before being protected from unfair dismissal, they will now be entitled to this right six months after starting a new job.
The full list of reforms to be introduced can be found here.
Key changes:
Statutory Sick Pay (SPP) will be payable from the first day of illness, removing the three-day waiting period and earnings threshold.
Family Leave Rights paternity leave and unpaid parental leave become “day-one” rights.
Bereaved Partners Paternity Leave, this is a new right to time off for parents following the death of a child’s mother/primary adopter. This is a “day one” right, applicable immediately upon employment without needing a minimum service period, allowing for extended care of the child.
The Fair Work Agency is a new UK Executive Agency, sponsored by the Department for Business and Trade, created in April 2026 to function as a single enforcement body for employment rights.
Main purpose is to enforce statutory entitlements such has minimum wage, holiday, and sick pay.
Sexual harassment has stronger protections for workers reporting sexual harassment, with whistleblowing protections applying to such disclosures.
Holiday pay records employers must maintain records for 6 years to prove compliance.
Gender Pay Gap and Menopause Employers with 250+ employees’ staff are encouraged to publish action plans for these areas.
Minimum Wage, the national living wage increases, with the rate for those 21+ rising to £12.71 per hour.
Reflection time:
Do you feel that the potential increased costs to businesses could see some business facing insolvency or having to make redundancies?
What do feel are the most important benefits to employers?
What do you feel are the most important benefits to employees?
How do you think some business might be impacted by the changes to employment law and rights?
Alignment with British Values:
This legislation directly reflects British values in the workplace:
Fairness & Individual Liberty: By ending “one-sided flexibility” in zero-hours contracts and providing stable hours, workers gain greater freedom and financial stability.
Rule of Law: The Act provides clearer, legally enforced rights that reduce the reliance on precarious employment contracts.
Mutual Respect: Strengthening collective bargaining rights and improving protection against harassment ensures a more respectful and safe working environment.
Equality: The new rules aim to protect vulnerable workers, particularly women and those in low-paid, insecure roles.
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