Employment Law Update 2026

It’s been a little while since we shared an Employment Law Update, so here’s a quick heads-up on changes that could quietly affect your contracts, payroll and people processes if left unchecked.

The Employment Rights Act 2025 brings some of the most significant changes to UK employment law in years. While most reforms aren’t expected to take effect until April 2026, many businesses are already starting reviews to avoid last-minute changes and unnecessary risk later on.

What’s Changing? A Top-Line Overview

Here are the main areas employers should have on their radar:

1. Day-one Statutory Sick Pay (SSP)
Employees are expected to become entitled to SSP from their first day off sick.

2. Day-one family leave rights
Immediate access to paternity leave and unpaid parental leave, with no length-of-service requirement.

3. Longer tribunal claim deadlines
Most Employment Tribunal claim time limits are expected to increase from three months to six months.

4. Restrictions on “fire and rehire”
Proposals include a ban or significant limits on dismissing and rehiring employees on less favourable terms.

5. New protections for zero-hours and irregular workers
Likely changes include guaranteed minimum hours, reasonable notice of shifts, and compensation for cancelled shifts.

Does This Affect You?

This is particularly relevant if you:

– employ people on zero-hours or irregular contracts

– rely on short service periods in contracts or policies

– have managers dealing with sickness, family leave or contract changes

– haven’t reviewed your contracts or handbook in the last 18–24 months

If you’re nodding at any of the above, it’s worth a quick sense check.

What to Do Next

These changes will impact contracts, handbooks, payroll processes and how managers handle people issues day to day. Changes are expected to begin taking effect from April 2026, but preparation now will make things far simpler later.