Given how much has been written about the Employment Rights Act, it's almost hard to believe it was a little over a year ago that it was introduced into Parliament on 10 October 2024. With Royal Assent having been received, the Bill is now an Act, and we are entering the next phase of the biggest overhaul of employment rights in a generation.
What happens now?
In fact, most of the headline-grabbing changes are still in their infancy in terms of finally hitting the statute books and impacting day-to-day HR practice. There is still a considerable amount of consultation that needs to take place on both legislation and, in some cases, supporting Codes of Practice. Although the reduction to qualifying service for unfair dismissal is expected to take effect on 1 January 2027, changes to flexible working and provisions relating to ending exploitative zero hours contracts are still at least 15 months away.
Immediate changes
The first provisions to come into force, either already on Royal Assent or within the next couple of months, are trade union-related. The Strikes (Minimum Service Levels) Act 2023 has been repealed. That will be followed by the repeal of most provisions under the Trade Union Act 2016. The overall effect of this is to reinstate the position on trade union legislation as it was pre-2016. The changes will make organising and taking industrial action simpler and more accessible. New protections against dismissal for taking industrial action also come into force.
Changes taking effect in 2026
It will not be until April 2026 that the impact of the Act will be felt more widely. There are more trade union-related changes scheduled to happen during the course of 2026. These relate to balloting, simplification of trade union recognition and the extension of protections against detriment for taking industrial action.
In the first half of the year, we will see provisions that will directly impact all employers. These include paternity leave and parental leave becoming a day one right, and the removal of the lower earnings limit and waiting days for statutory sick pay. Employers, unionised or otherwise, who find themselves in the position of triggering collective consultation obligations need to be aware of the doubling of the maximum protective award from 90 to 180 days' pay per employee.
The latter half of the year should see the extension of the duty to prevent sexual harassment to take "all" reasonable steps, and the introduction of protection from third-party harassment. Employment tribunal time limits for lodging claims will extend from three to six months. All employers, including those who may not consider their workplace as likely to be affected by trade unions, need to be aware of the duty to inform workers of their right to join a trade union and the strengthening of a union's right of access to workplaces.
This does not cover all of the planned changes but gives a taste of what to expect in 2026. The next couple of years are going to be busy for everyone involved in people management and it is essential that employers are fully prepared.
