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Employment law changes in 2026 and beyond: why employers can’t afford to ignore them
January 6, 2026
By Fflur Jones
2026 will be another big year for employers as the changes from the recently-passed Employment Rights Act 2025 start to come into force.
Our employment law expert, Fflur, highlights the key legal developments expected this year and what employers can do to prepare.
The Employment Rights Act 2025 (ERA) finally became law on 18th December 2025, after being passed at the last minute by the UK Parliament on 16th December following months of debate.
The ERA contains a huge number of changes to employment law and is arguably the biggest piece of employment legislation since the Equality Act 2010. It introduces changes in areas ranging from unfair dismissal rights to paternity leave, and much more in between.
Employers can’t afford to ignore the ERA – it will start to affect all businesses straight away.
Several changes are coming into force as soon as April 2026, with many others due in October. There are also several consultation processes happening on the final details of other changes expected in 2027. The currently-expected timeline of key changes is as follows:
| April 2026 |
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| October 2026 |
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| 1st January 2027 |
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The changes don’t stop there – in 2027 we expect to see a further raft of changes, including reforms to zero-hour contract workers’ rights, non-compete clauses in contracts of employment, flexible working, and a new right to statutory bereavement leave.
The ERA 2025 isn’t the only piece of new employment law expected this year. We’re also waiting for a new bill which will introduce rights on equal pay and pay gap reporting in relation to race and disability. This bill may also may make other reforms to discrimination law.
The Equality and Human Rights Commission’s Code of Practice on single-sex spaces is still waiting to be finalised following the Supreme Court’s decision on the definition of “sex” under the Equality Act 2010.
We’re also expecting some key decisions in case law from the higher courts in areas including holiday pay, philosophical beliefs, and equal pay.
The most crucial step employers need to take now is to audit their policies, procedures and contracts of employment.
Policies on paternity and parental leave, sickness absence, whistleblowing, discrimination and harassment will all need to be updated – several of these will need to be ready by April 2026. Contracts will also need to be updated, especially in relation to the requirement to tell employees about their trade union rights from October.
Before the major changes to unfair dismissal law on 1st January 2027, employers also need to review their disciplinary, capability and redundancy processes to make sure they’re compliant, and may need to train managers on carrying out these processes.
Our employment law and HR experts can advise you on what you need to do to stay compliant with the law, and can review and update your policies and contracts for you. We also regularly deliver training to employers in all these areas. Get in touch with Fflur Jones using our contact form, or via 02920 829117 today to see how we can help you.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
