2025 – 2027 Employment Law Changes: What’s Already Changed & What You Must Action This Year

The UK employment law landscape is undergoing one of the most significant reform periods in recent years. With the Employment Rights Act 2025 now in force and further changes scheduled through 2026 and 2027, it is vital that employers prepare early to ensure compliance and reduce risk.

Below is a summary of the key changes and what they mean for your organisation.

Already in Force

Flexible Working (April 2024)

Employees can now request flexible working from day one of employment and may make two requests per year.

Neonatal Care Leave & Pay (6 April 2025)

Eligible parents are entitled to up to 12 weeks’ paid neonatal care leave as a day-one right where qualifying criteria are met.

Employment Rights Act 2025 (Royal Assent: 18 December 2025)

The Act officially became law, triggering a phased programme of reforms.

Key Changes in 2026

From 18 February 2026

  • Stronger protections for employees participating in lawful industrial action (automatic unfair dismissal protection extended).
  • Simplified trade union ballot and notice rules.
  • Earlier notice period for paternity and parental leave in line with April updates.

From 6 April 2026 – Major Reform Date

Family Leave
  • Paternity leave becomes a day-one right.
  • Unpaid parental leave becomes a day-one right.
  • Updated paternity leave support for bereaved partners.
Statutory Sick Pay (SSP)
  • SSP payable from day one of absence (removal of three waiting days).
  • Lower earnings limit removed for eligibility.
Collective Redundancy
  • Maximum protective award doubles from 90 days to 180 days’ pay.
Whistleblowing & Harassment
  • Sexual harassment disclosures qualify for whistleblowing protection.
Enforcement

Launch of the Fair Work Agency to strengthen employment rights enforcement.

  • A new Fair Work Agency is being introduced to strengthen enforcement of employment rights and ensure greater compliance.
  • Government is setting up a new enforcement body (Fair Work Agency) to better oversee and enforce workplace rights.

Simplified trade union recognition processes begin.

  • The process for trade union recognition is being simplified.
  • New streamlined rules for trade union recognition come into effect.
  • Trade union recognition procedures are being made easier and more straightforward.

August 2026 (no earlier than)

  • Electronic trade union ballots introduced.
  • Removal of minimum turnout requirements for ballots.

October 2026 (subject to commencement orders)

  • Employment Tribunal time limits extend from 3 months to 6 months, for an employee to apply to a Tribunal.
  • Employers in the hospitality industry must formally review and consult on tipping policies every three years.
  • Increased employer liability for third-party harassment (unless reasonable preventative steps taken). Ensure your policies and training has been put in place.
  • Expanded trade union rights, including facility time and workplace access.

From 1 January 2027

  • The unfair dismissal qualifying period will reduce from two years to six months’ service, and new probationary and management processes will be put in place to support this change.
  • “Fire and rehire” practices become automatically unfair in most circumstances.

During 2027 (dates TBC)

Further reforms expected to include:

  • Rights to guaranteed hours for zero/low-hours workers.
  • Compensation for cancelled shifts and reasonable shift notice.
  • Enhanced pregnancy and maternity protections.
  • Introduction of statutory bereavement leave.
  • Stronger requirements around flexible working refusals.
  • Mandatory gender pay gap and menopause action plans.
  • Expanded collective redundancy thresholds.
  • Additional trade union and industrial relations reforms.

Annual Statutory Rate Updates

As usual, statutory payments (National Minimum Wage, SSP, family leave pay and redundancy limits) continue to increase each April.

What This Means for Employers

These reforms significantly increase employee protections and employer obligations. Areas that require early review include:

  • Contracts of employment
  • Probation procedures updated and changed
  • Family leave policies
  • Sick pay procedures
  • Redundancy consultation processes
  • Harassment prevention measures
  • Trade union engagement practices
  • Workforce planning and dismissal risk management

With tribunal time limits doubling and unfair dismissal protection expanding, proactive compliance is more important than ever.

At Spectrum HR Solutions, we are working closely with clients to:

  • Review and update employment contracts and policies
  • Conduct compliance audits
  • Deliver management training on upcoming reforms
  • Support workforce restructuring and redundancy planning
  • Provide ongoing HR advisory support

If you would like to discuss how these changes may impact your organisation, please contact our team.

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