Employment Law Changes 2026: What the New Employment Rights Act Means for Employers

The UK’s Employment Rights Act has now completed its passage through Parliament, having received Royal Assent in December 2025. For employers, this is not only a legal update; it’s a shift in how employment relationships are managed from day one. While many of the changes will be phased in through secondary legislation, now is the time for HR teams to start preparing.

A Stronger Focus on Day-one Employment Rights

A key aim of the Employment Rights Bill is to strengthen worker protections and address insecure work. This places greater responsibility on employers to ensure their HR foundations are solid from the very start of employment.

The bill introduces or strengthens several core employment rights, including:

• Day-one access to statutory sick pay and day-one notice rights for paternity leave
• Enhanced protections for pregnant employees and new mothers (due to be extended further from 2027)
• Expanded parental and bereavement leave
• Stronger whistleblowing protections, including sexual harassment becoming a qualifying disclosure
• New duties on employers to take “all reasonable steps” to prevent sexual harassment, alongside new third-party harassment protections. 

For businesses, this means policies, training and onboarding processes will need to be clear, up to date and consistently applied.

Zero-hours Contracts and Workforce Models

The legislation also includes measures to limit exploitative zero-hours contracts, including a future right for workers to request guaranteed hours. Employers that rely on flexible or casual working arrangements will need to review how work is offered and how contractual terms are structured.

This is less about removing flexibility altogether and more about ensuring working arrangements are fair, transparent and compliant. HR input will be critical in balancing operational needs with legal obligations.

Probation, Performance and Managing Risk 

One of the most talked-about elements of the act, unfair dismissal rights from day one, was ultimately removed. Instead, the qualifying period for ordinary unfair dismissal will reduce to six months (expected from 2027), after which employees can bring an unfair dismissal claim. 

From an HR perspective, this puts renewed focus on how probation and performance are managed. 

Employers should be thinking now about:

• Whether probation processes are clearly defined and consistently followed
• How performance issues are identified, documented and addressed early
• Whether line managers are confident in handling difficult conversations
• The quality of record-keeping and decision-making during early employment

Getting this wrong could significantly increase employee relations and tribunal risk.

Trade Union Rights and Consultation

The act also strengthens trade union rights, including improved access to workplaces and changes to union recognition rules. This signals a broader shift towards increased consultation and employee voice.

HR teams will need to ensure organisations understand their obligations, particularly in unionised or partially unionised environments, and have the right frameworks in place to support constructive engagement.

What Employers Should Be Doing Now

Although not all measures will take effect immediately, employers should be using this time to prepare. From an HR standpoint, key actions include:

• Reviewing employment contracts and workplace policies
• Assessing the current workforce and contract models
• Checking HR systems and data are fit for purpose
• Upskilling managers on probation, performance and employee relations
• Planning clear communication with employees as changes are introduced

A proactive approach will put organisations in a much stronger position as the new legislation comes into force.

Let us Help you Get Ready

Navigating these changes goes beyond simply keeping up with legal updates. It requires a strategic HR approach, tailored to your organisation’s structure, sector and workforce.

As HR professionals, we specialise in guiding employers through regulatory change. From policy reviews and contract audits to HRIS alignment, manager training and employee communication plans, we’re here to help you adapt confidently and compliantly.

If you’d like support preparing for the Employment Rights Bill and understanding what it means for your organisation, MAD-HR is here to help.