How the 2026 Employment Rights Act Will Change UK Workplaces and What HR Teams Should Do

How the 2026 Employment Rights Act Will Change UK Workplaces and What HR Teams Should Do Now

If you’re an employer, or work in HR, you’ve probably seen headlines about the Employment Rights Act and possibly thought it was something to address closer to the time.

The reality is that the changes coming into force from 2026 are already shaping how employers should be thinking about absence, leave, redundancy, and employee protections. This is not a minor update to existing rules. It is one of the most significant shifts in UK employment law in decades and many employers will be more affected than they realise.

Why this Act is different

The Employment Rights Act 2025, passed by Parliament at the end of last year, introduces a package of reforms that expand day-one rights, strengthen enforcement, and increase financial risk where employers get things wrong.

What makes this Act particularly important is not just the number of changes, but how they interact with everyday HR processes. Payroll, onboarding, line manager training, and record keeping will all need attention.

Below are some of the key 2026 employment law changes taking effect from 2026, and what they mean in practice. (source)

Statutory Sick Pay will apply from day one

From April 2026, statutory sick pay will be payable from the first day of sickness absence. The current waiting days will be removed, and the lower earnings limit will no longer apply.

Many organisations still operate on the assumption that short absences are informal or unpaid. From 2026, that assumption becomes a compliance risk.

What this means for employers:

• Absence reporting processes need to be accurate from day one
• Payroll systems must be able to calculate SSP immediately
• Managers need to understand when SSP applies and how to explain it to employees

This change is likely to increase administrative workload, particularly for employers with higher levels of short-term absence.

Paternity and Parental Leave will be day-one rights

Another change that may catch employers out is the removal of service requirements for paternity leave and unpaid parental leave. Eligible employees will be able to take these types of leave from their first day of employment.

In practice, this changes how employers think about onboarding. Family leave is no longer something that only affects long-serving employees, it can apply during probation, early employment, and even shortly after hiring.

Employers should be asking:

• Do our policies clearly explain eligibility and notice requirements?
• Are managers confident handling these requests?
• Are we applying the rules consistently across the business?

Outdated policies are one of the most common issues we see in this area.

Redundancy mistakes will be more expensive

The maximum protective award for failing to properly consult in collective redundancy situations will double to 180 days’ pay.

This is a significant increase in potential liability. Even employers acting in good faith can be caught out if consultation processes are rushed, poorly documented, or misunderstood.

This change puts even more emphasis on:

• Clear consultation timelines
• Accurate record keeping
• Early HR involvement in restructuring decisions.

For organisations that have not reviewed their redundancy procedures recently, this is a real risk area.

Whistleblowing protections are being expanded

Sexual harassment disclosures will now be explicitly covered by whistleblowing legislation. This means employees who raise these concerns are legally protected from detriment or dismissal.

This change reinforces the importance of having:

• Clear reporting channels
• Up-to-date whistleblowing and harassment policies
• Managers who understand how to respond appropriately

It also highlights the need for employers to take a proactive approach to preventing harassments, not just reacting to complaints, a great way to prevent this would be to ensure training is available at all levels within the company from induction onwards.

Unions

The Act introduces major reforms to strengthen trade union rights, including repealing minimum service levels for strikes, making dismissal for taking part in industrial action automatically unfair, and simplifying industrial action processes by reducing notice periods, removing the requirement for picket supervisors, and streamlining ballot and action notices.

It also extends industrial action mandates from six to twelve months, removes previous turnout and support thresholds, and paves the way for electronic balloting.

Additionally, employers must inform workers of their right to join a union, and the overall recognition process is being simplified, with further protections for union members and representatives introduced through 2026.

Enforcement will become more visible

A new fair work agency is being established to bring together enforcement of key employment rights, including sick pay and holiday pay.

For employers, this signals a shift towards more active enforcement rather than reliance on individuals bringing claims. Accurate records, compliant processes, and clear policies will matter more than ever.

Why these changes feel bigger in practice

Individually, each of these changes are manageable. Taken together, they represent a significant operational shift.

The challenge of many organisations is not just the awareness of the law, but the practical reality of implementing it across policies, payroll systems, and day-to-day management.

This is especially true when

• Policies have not been reviewed recently
• Payroll systems are configured around older rules
• There is uncertainty on updated rights amongst teams

How an HR Audit supports preparation

A HR Audit provides a structured way to assess readiness ahead of legislative change.

Typically, this includes reviewing:

• Contracts and employee handbooks
• Absence and sick pay processes
• Family leave policies
• Redundancy and consultation procedures
• Whistleblowing and harassment reporting
• Payroll and record keeping systems

The aim is to identify gaps, prioritise actions, and support HR teams in operating confidently in 2026.

The Employment Rights Act reflects a clear shift towards stronger worker protections and increased employer responsibility. For HR teams, it creates an opportunity to refresh policies, improve consistency, and reduce risk.

If your documents, systems, or processes have not been reviewed recently, now is a sensible time to start that conversation.

To arrange a HR audit with one of our experienced HR advisors please reach out to hr@blackmountainhr.com to arrange a call, alternatively you can reach out via webform here.