Employment Rights Act reforms

The Employment Rights Act was passed on 18 December 2025 and the UK Government has now published its implementation roadmap for the Employment Rights Act reforms, setting out a phased programme of significant changes to employment law expected to be introduced between 2026 and 2027.

For employers, the direction of travel is clear: greater protection for workers, stronger enforcement powers and additional responsibilities for businesses. While the reforms will be introduced gradually, many employers will need to review employment contracts, workplace policies and HR processes well in advance of the changes coming into force.

Early reforms from April 2026

These measures focus largely on expanding worker protections and strengthening enforcement.

• Day one rights to paternity leave and unpaid parental leave, removing the current service requirements for these entitlements.

• Changes to statutory sick pay, including the removal of the lower earnings limit and the waiting period so that statutory sick pay becomes payable from the first day of sickness absence rather than the fourth.

• Enhanced whistleblowing protections, extending safeguards for individuals who raise concerns about wrongdoing in the workplace.

• The creation of a new Fair Work Agency, which will bring together enforcement powers currently spread across multiple regulators and will oversee compliance with a range of employment rights, including minimum wage and holiday pay.

• Reforms to trade union recognition and balloting processes, including the potential introduction of electronic balloting and strengthened protections for employees participating in trade union activity.

Employer responsibilities increasing from late 2026

Later phases of the reforms are expected to place greater obligations on employers themselves.

These include:

• A strengthened duty on employers to take reasonable steps to prevent sexual harassment, including harassment by third parties such as customers or clients.

• Restrictions on the use of “fire and rehire” practices, meaning employers will only be able to dismiss and re-engage staff on new terms in limited and tightly defined circumstances.

• New legal rules governing fair tipping practices, aimed at ensuring tips and service charges are distributed fairly among workers.

• Changes to employment tribunal time limits, with most claims expected to have a six-month limitation period rather than the current three months.

Significant structural changes expected from 2027

Some of the most significant reforms are expected to follow in later phases of the roadmap.

On 1st January 2027 standard protection from unfair dismissal will become a right after 6 months in a job, rather than the current 2 years.

The reforms will also introduce stronger protections for workers on zero-hours or low-hours contracts. Workers who regularly work consistent hours may gain the right to request a contract reflecting their normal working pattern.

In addition, the government has indicated that flexible working rights will be strengthened, with employers facing stricter requirements when refusing requests for flexible working arrangements.

Other reforms under consideration include greater regulation of umbrella companies and agency worker arrangements, reflecting growing scrutiny of employment practices in these areas.

The government is consulting on some of these issues until 1st April 2026.

What this means for employers

Although the implementation timetable provides businesses with time to adapt, the scale of the reforms means employers should begin preparing now.

Many employment contracts, policies and staff handbooks will need to be reviewed and updated. In particular, employers should start considering how these changes may affect areas such as sickness absence policies, flexible working procedures, disciplinary processes and workforce planning.

The creation of the Fair Work Agency also signals a shift towards stronger enforcement of employment rights, increasing the importance of ensuring internal policies and procedures remain compliant.

For many businesses, particularly SMEs without in-house HR teams, taking advice early will help ensure the transition to the new regime is managed smoothly.

If you would like support reviewing your employment documentation or preparing your business for the upcoming reforms, the employment team at Gullands Solicitors can help guide you through the changes.