Employment Rights Act
Things are set to kick off with changes to trade union-related laws on, or within two months of, the Act coming into force. Taken together, these changes will make it easier for unions to organise industrial action, as well as making it more likely that ballots in favour of industrial action will be successful.
We will see a significant amount of consultation throughout 2026, with the UK Government having indicated that we can expect to see 26 consultations published on various measures contained in the Act.
April and October 2026 will see a number of new measures being introduced and existing employment rights strengthened. More details of these, including timings, are available on our Employment Law Reform Timeline. Of note amongst these are as follows:
- Paternity leave and unpaid parental leave becoming day one rights
- Removal of the lower earnings limit and waiting period for statutory sick pay
- Tightening of harassment laws, including the requirement to take all reasonable steps to prevent sexual harassment and the introduction of employer liability for third-party harassment
- The extension of time limits to bring employment tribunal claims from three to six months
- Restrictions on "fire and rehire"
- Doubling the maximum collective redundancy protective award
- The introduction of an employer’s duty to inform workers of their right to join a trade union (irrespective of whether an employer is currently unionised)
- Increased rights for trade unions to access workplaces (irrespective of whether an employer is currently unionised)
- Simplifying the trade union recognition process
One welcome development is the establishment of the Fair Work Agency, which is intended to provide employees with a "one-stop shop" relating to basic employment rights such as the National Minimum Wage and paid holidays. This is scheduled for April and, whilst it is expected to have wide enforcement powers, it is likely to take some time to become fully operational.
Although the above is by no means a complete list of the measures to be brought into force via the Employment Rights Act, it gives a flavour of what is to come. This is, of course, only the first year of the implementation of what Angela Rayner described as "a once in a generation chance to reshape the world of work", with more to follow in 2027.
This is now expected to include the reduction in the unfair dismissal qualifying service period from two years to six months, with effect from 1 January 2027. In addition, in a late and unexpected twist during the parliamentary ping-pong between the House of Commons and the House of Lords, the cap on the level of compensation that can be awarded in a successful unfair dismissal claim is also, as things stand today, set to be removed, most likely in 2027. This is highly significant and will lead to some very high-value claims in certain circumstances.
Case law update
A number of judgments are set to be handed down in 2026 for cases heard in 2025. This includes Miller v University of Bristol, which may become a landmark case in relation to what counts as a philosophical belief under the Equality Act 2010.
Meanwhile, another case with potential landmark status is the Supreme Court hearing in Augustine v Data Cars Ltd, which should be the final word on whether part-time workers are protected when their part-time status is only an effective cause, and not the sole cause, of their less favourable treatment.
Equality and Human Rights Employment Code of Practice
Following the Supreme Court judgment in For Women Scotland Ltd v The Scottish Ministers, guidance is needed in relation to how to balance the rights of transgender workers. It is hoped that this will be forthcoming in the form of an updated Equality and Human Rights Employment Code of Practice. It is possible that we may see this at some point in 2026.
More detail on what to expect in 2026 will be available at our upcoming webinar, What to expect in employment law in 2026, on 15 January. Follow the link to sign up or, if you cannot make it on the day, to have the recording sent to you.
