Clear, practical updates—what’s in force now, what’s coming next, and how to stay compliant with confidence.
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2027
What is next in 2027?
From 1 January 2027, major ERA 2025 reforms will come into force. These changes significantly increase the dismissal risks, strengthen worker protections, and expand employer consultation duties.
Unfair Dismissal Changes – From 1 January 2027
• Unfair dismissal qualifying period reduces to six months
• Compensation cap for unfair dismissal is removed
• Employers’ ability to use “fire and rehire” becomes heavily restricted
Industrial Relations and Union Framework
• New measures introduced to address blacklisting
• A new industrial relations framework is implemented
• Electronic and workplace balloting permitted for recognition and derecognition ballots
Redundancy and Consultation Reforms
New consultation duties apply where either:
• 20 or more redundancies are proposed at one establishment, or
• a specific number or percentage of the overall workforce is affected
These changes expand when employers must carry out collective consultation.
Zero Hours and Low Hours Worker Rights
• Right to a guaranteed hours contract reflecting normal working patterns
• Right to reasonable notice of shift changes
• Right to compensation when shifts are cancelled or shortened at short notice
Flexible Working
• Flexible working becomes a default day one right, except where not reasonably feasible
Mandatory Reporting for Employers with 250+ Employees
• Gender equality action plans become mandatory
• Menopause action plans also become mandatory (moving beyond voluntary reporting)
Pregnancy, Maternity and Bereavement Rights
• Stronger protection from dismissal during pregnancy and maternity leave
• New day one right to at least one week of bereavement leave
• Bereavement leave extended to include miscarriage before 24 weeks
Key Actions
• Redesign probation and onboarding processes to manage increased dismissal risk
• Update dismissal procedures to reflect the removal of the compensation cap
• Review redundancy modelling and consultation triggers
• Audit shift-based roles for notice and cancellation compensation requirements
• Update flexible working procedures to reflect day one rights
• Refresh pregnancy, miscarriage, maternity and bereavement leave policies
• Review change management processes to comply with fire and rehire restrictions.
2026
What is changing?
January 2026
Enhanced DBS Checks for Contractors
Employers can request Enhanced DBS certificates directly from self-employed contractors.
April 2026
Statutory Sick Pay Reform
SSP becomes payable from day one of sickness.
The Lower Earnings Limit is removed, meaning more workers qualify.
National Minimum Wage and Statutory Rate Updates
Annual increases to NMW and statutory payments take effect.
Day One Paternity Leave
Paternity leave becomes a day one right.
Day One Unpaid Parental Leave
Unpaid parental leave becomes available from day one of employment.
Collective Redundancy, Trade Union and Whistleblowing Changes
ERA 2025 introduces:
• Reforms to collective redundancy thresholds
• Stronger trade union rights and access
• New industrial action rules
• Clearer whistleblowing protection for disclosures about sexual harassment
Fair Work Agency Launch
The Fair Work Agency (FWA) begins operating as the new labour enforcement body.
August–October 2026 (Earliest dates)
• Unions permitted to use electronic, workplace and hybrid ballots for industrial action
• Stronger union access rights and protections for reps
• Employers must take all reasonable steps to prevent sexual harassment
• Duty not to permit third-party harassment
• Tribunal time limits may be extended from 3 to 6 months
• Tipping policy reforms: consultation required and mandatory 3 year reviews
Key Actions
• Update sickness policies for SSP day one eligibility
• Update paternity and parental leave policies to reflect day one rights
• Review redundancy, union recognition and industrial action procedures
• Strengthen whistleblowing and anti harassment frameworks
• Update safeguarding processes for contractor DBS checks
• Monitor annual statutory rate and NMW changes
• Review zero hours arrangements in anticipation of 2027 reforms.
2025 Employment Law Changes
What has changed?
18 December 2025 – Employment Rights Act 2025
The ERA 2025 becomes law, setting the foundation for major reforms across 2026–2027. (Legally enforceable)
16 December 2025 – Immigration Skills Charge Increase
The Immigration Skills Charge increases by 32%. (Legally enforceable)
2 December 2025 – Extension of Right‑to‑Work Checks
Right‑to‑work checks will expand to cover agency workers, sub‑contractors, gig‑economy workers, and zero‑hours arrangements once commencement regulations are confirmed. (Upcoming law)
1 December 2025 – ACAS Early Conciliation Extended
Early conciliation period doubles from 6 to 12 weeks. (Legally enforceable)
1 December 2025 – Redundancy Notifications Go Digital
Employers must submit notifications for 20+ redundancies digitally only. (Legally enforceable)
5 November 2025 – Economic Inactivity Review
Publication of the Keep Britain Working report. (Update)
14 October 2025 – Fair Work Agency Chair Appointed
New labour market enforcement body leadership confirmed. (Update)
1 October 2025 – New Rights for Victims of Crime
New statutory rights for victims of crime take effect. (Legally enforceable)
4 September 2025 – EHRC Code of Practice
Updated Code submitted to the government for review.
1 September 2025 – Failure to Prevent Fraud Offence
New corporate criminal offence for failing to prevent fraud. (Legally enforceable)
21 August 2025 – EHRC Agreement with Lidl GB
Public equality and harassment compliance agreement published.
2 August 2025 – Ban on Using AI Outputs in EU Markets
Restrictions extend to the commercial use of AI‑generated outputs within EU markets. (Legally enforceable)
5 June 2025 – Supreme Court Ruling: Religious Expression Case
Key judgment on freedom of religious expression in the workplace.
28 April 2025 – NI Employment Rights Bill Measures
Planned reforms under Northern Ireland’s employment rights programme. (Debate)
16 April 2025 – Supreme Court Ruling: For Women Scotland
Important decision affecting gender definitions and policy interpretation.
6 April 2025 – Neonatal Care Leave & Pay
New statutory right to up to 12 weeks neonatal leave and pay. (Legally enforceable)
2 February 2025 – EU AI Output Use Restrictions
UK businesses banned from using certain AI‑generated outputs in EU markets. (Legally enforceable)
20 January 2025 – 25% Increase in Protective Awards
Protective awards increase where employers breach the new fire and rehire statutory code. (Legally enforceable)
6 January 2025 – Employment Tribunal Reforms
New tribunal processes come into effect. (Legally enforceable)
1 January 2025 – eVisas Replace BRP Cards
Online eVisas replace Biometric Residence Permits for proof of immigration status. (Legally enforceable)Foundation HR Support
Key Actions
Update family‑leave policies to include the new statutory Neonatal Care Leave and Pay (from April 2025).
Prepare for expanded right‑to‑work checks that will soon apply not only to employees but also contractors, agency workers and gig/zero‑hours staff.
Adjust HR processes for ACAS conciliation, moving to 12 weeks and digital redundancy notifications.
Review anti‑fraud, EDI, sexual‑harassment, and victim‑of‑crime policies due to multiple new legal and guidance changes.
Plan for increased sponsorship costs if recruiting via the Skilled Worker route.
Begin an ERA 2025 readiness review, as major reforms land from 2026.
