A Clear Guide for Business Owners and HR Leaders
2026 brings significant employment law changes in the UK. The Employment Rights Act 2025 continues a phased implementation across 2026 and into 2027. The direction is consistent:
- Stronger worker protections
- Expanded trade union rights
- Increased employer accountability
- Higher financial exposure where processes are weak
For business owners and HR leaders, this is not just about compliance. It is about governance, cost control and managerial discipline.
Below is a clear summary of what is changing and what it means in practice.
1. Trade Union and Industrial Action Reform
The framework governing trade unions and industrial action changes materially in 2026.
Already in force
- Repeal of the Strikes (Minimum Service Levels) Act 2023
https://www.acas.org.uk/employment-rights-act-2025
From 6 January 2026
- Repeal of the Workers (Predictable Terms and Conditions) Act 2023
From 18 February 2026
- Industrial action notice period reduced from 14 days to 10 days
- Simplified ballot and industrial action notice requirements
- Industrial action mandates extended from 6 to 12 months
- Stronger protection from dismissal for official and lawful industrial action
- Removal of the previous 12-week limitation on unfair dismissal protection in certain circumstances
- Changes to political fund requirements
ACAS overview:
https://www.acas.org.uk/employment-rights-act-2025
Government implementation timeline:
https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update
From April 2026
- Simplified trade union recognition process
From August 2026
- Electronic and workplace balloting permitted, subject to statutory safeguards
From October 2026
- Employers must inform workers of their right to join a trade union
- Stronger union access rights
- Extended protection against detriment for industrial action
- Enhanced protections for union representatives
Government timeline:
https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update
What this means for business
- Less notice before industrial action
- Longer mandates once action is approved
- Stronger dismissal protection
- Greater procedural scrutiny
If your industrial relations strategy is informal or reactive, it needs review.
2. Day 1 Family Leave Rights
From 6 April 2026:
- Paternity leave becomes a Day 1 right
- Unpaid parental leave becomes a Day 1 right
- Extended paternity leave available in certain bereavement circumstances
ACAS guidance:
https://www.acas.org.uk/employment-rights-act-2025
Government timeline:
https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update
What this means for business
Eligibility thresholds reduce.
Statutory rights apply from the first day of employment.
Manager understanding and onboarding documentation must be updated accordingly.
3. Statutory Sick Pay Reform
From 6 April 2026:
- Statutory Sick Pay becomes payable from Day 1 of absence
- The Lower Earnings Limit is removed for eligibility
Government timeline:
https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update
Statutory rates 2026 to 2027:
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
What this means for business
- Increased payroll exposure
- Wider eligibility
- Potential shift in absence cost modelling
Absence management processes and payroll systems should be reviewed before April 2026.
4. Redundancy Risk Increases
From 6 April 2026:
- The maximum protective award for failure to comply with collective consultation requirements increases from 90 to 180 days’ pay
ACAS summary:
https://www.acas.org.uk/employment-rights-act-2025
What this means for business
Financial exposure doubles where consultation processes are flawed.
This makes:
- Timetables
- Documentation
- Legal checkpoints
- Leadership discipline
even more critical in any restructure.
5. Sexual Harassment and Third-Party Duties
From October 2026:
- Employers will be under a strengthened statutory duty to take all reasonable steps to prevent sexual harassment
- Obligations extend to risks involving third parties such as customers or service users
Government timeline:
https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update
What this means for business
This is about evidence.
Policies alone are unlikely to be sufficient.
Training, risk assessments, reporting routes, preventative measures and documented oversight will matter.
6. Tribunal Time Limits Extended
From October 2026:
- Most employment tribunal time limits extend from three months to six months
ACAS overview:
https://www.acas.org.uk/employment-rights-act-2025
What this means for business
The window for claims lengthens.
Record-keeping discipline becomes more important.
7. National Minimum Wage and Statutory Rates
From 1 April 2026:
- National Living Wage and other minimum wage rates increase
Government confirmation:
https://www.gov.uk/government/publications/minimum-wage-rates-for-2026
Statutory payment rates:
https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
What this means for business
Budget forecasting and reward frameworks should reflect updated statutory floors.
A Practical 2026 Readiness Plan
Focus on five areas.
1. Industrial Relations
Clarify your position on union engagement.
Ensure leadership understands shorter notice periods and extended mandates.
2. Redundancy Process
Review your collective consultation framework.
Confirm ownership, timelines and documentation standards.
3. Manager Capability
Update guidance on Day 1 rights and SSP changes.
Brief managers before April 2026.
4. Payroll and Cost Planning
Model SSP changes and minimum wage increases.
Verify payroll systems are updated.
5. Harassment Prevention
Audit training completion.
Review reporting routes.
Document preventative steps clearly.
Final Thoughts
2026 does not require alarm but it requires preparation.
Most of these changes are manageable if addressed early and methodically. The real risk lies in outdated assumptions and informal processes.
Clear governance. Disciplined documentation. Informed managers.
That is what will make the difference.
