Summary

The government were proposing that the current two year qualifying period for unfair dismissal be removed so employees had the right not to be unfairly dismissed from day one. This was one of the most controversial measures in the bill, and one which the House of Lords was resisting.

Subsequent amendments to the bill eventually passed through parliament, reducing the qualifying period for unfair dismissal from two years to six months (with the qualifying period only able to be varied by primary legislation in the future) and removing the cap on the compensatory award altogether (currently compensation for ordinary unfair dismissal is capped at a year’s salary or a statutory cap (currently £123,534), whichever is the lower).

Some changes will also be made in relation to the qualifying period for a claim for a failure to provide a written statement of reasons for dismissal and for unfair dismissal claims relating to spent convictions.

Commencement regulations have now been made bringing these provisions into force on 1 January 2027. The reduction of the qualifying period and removal of the cap will not be retrospective and apply in any case where the ‘effective date of termination’ falls on or after 1 January 2027.

Impact and practical steps employers can take to prepare

Moving away from day one unfair dismissal rights to a six month qualifying period is a significant concession by the government, and one that will be welcomed by employers. However, a change to the compensation award will be less welcomed by employers. Currently, there are only a limited number of circumstances where there is no cap on the compensatory award for unfair dismissal. On the one hand there is a view that many unfair dismissal claims don’t get close to the cap and that removal of the cap means there will be less incentive for employees to bring claims for discrimination and whistleblowing to try and access uncapped compensation. However, removal of the cap will mean more high value unfair dismissal claims from employees who may not otherwise have pursued such a claim in tribunal. It will also mean more complex claims involving high earnings and valuable benefits, and more arguments around career loss. Removal of the cap will also impact on settlement negotiations and the approach to senior executive exits.

In relation to a new six month qualifying period for unfair dismissal, it will be important for employers to prepare by ensuring that probationary periods and performance management processes are used effectively for new hires. Of course, it is already the case that employees may bring a limited number of claims for unfair dismissal from day one along with discrimination claims. As such, it is still important to have robust recruitment processes in place and that fair and reasonable procedures are followed in the early stages of employment so as to mitigate against the risk of those claims. Employers should also take care to apply notice provisions correctly, including statutory minimum notice periods, to avoid inadvertent unfair dismissal exposure.

Removal of the cap on the compensatory award for unfair dismissal means that employers will need to be particularly careful when dealing with terminations that could lead to a high value claim. However, employers will be aware that it is already the case that there is no cap on compensation for discrimination claims or whistleblowing claims.

Summary

The maximum protective award for a breach of the collective consultation requirements on redundancy has doubled from 90 days’ pay to 180 days’ pay. The government has said it will produce guidance to help employers understand their obligations around collective consultation ‘in due course’.

This change came into force on 6 April 2026. Note that there are transitional and saving provisions which provide that the new provision will not apply in relation to dismissals taking effect before 6 April 2026.

Impact and practical steps employers can take

This change will significantly increase the cost to employers of non-compliance with the obligation to consult collectively.

Employers should ensure they understand their obligations to avoid inadvertent breaches and track proposed dismissal numbers (noting that changes will also be made to the threshold to trigger collective consultation in 2027). Employers should also remember that failing to comply with the obligation to file a HR1 notice in respect of collective redundancies is already a criminal offence.

Summary

The existing threshold to trigger collective consultation requirements of 20 or more dismissals at one establishment over a 90 day period will remain in place. However, the government will introduce regulations to set an additional threshold where dismissals are to be at more than one establishment. The duty to notify the secretary of state of dismissals on an HR1 will be aligned with the new trigger.

The government launched a consultation on the additional threshold on 26 February 2026, which closed on 21 May 2026, see: GOV.UK. The government has said that its lead proposal is to have an organisation wide threshold based on a single fixed number in the range of 250 – 1,000 proposed redundancies, but it is seeking views on other options as well.

Regulations will be required to set the additional threshold following the outcome of the consultation.

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare

It is difficult to know exactly what the impact of this change will be pending confirmation of what the new threshold will be. However, aggregating dismissals across establishments could have a significant impact on large multi-site employers.

Given the accompanying increase to the protective award, it will be important that employers ensure they understand their obligations so as to avoid inadvertent breaches, and that sites do not operate in silos and proposed dismissals are tracked.

Summary

Dismissal for failing to agree to a “restricted variation” of contract will be automatically unfair, with a limited financial difficulties exception. Broadly speaking, restricted variations will concern pay, hours and time off (as well as the inclusion of a variation clause relating to these issues) with the Secretary of State able to add to these through regulations.

The financial difficulties exception will require an employer to show a proposed variation was to eliminate, prevent or significantly reduce or mitigate the effect of any financial difficulties, which at the time of dismissal, were effecting or were likely in the immediate future to effect, its ability to carry on business as a going concern (there are separate provisions for public sector and local authority employers). The employer will also need to demonstrate that it could not have reasonably avoided the need to make the variation. If the financial difficulties exception is satisfied a tribunal will go on to determine whether the dismissal was unfair, but in doing so will need to take into account a number of specified factors including the level of consultation and anything offered to the employee in return for agreeing the variation. If an employer dismisses in circumstances where there is a variation that is not restricted these factors will also need to be considered.

It should be noted that it appears that any valid variation clause already in place will continue to be valid, and there is nothing to prevent employers hiring new employees with variation clauses in their contracts.

There are similar provisions in relation to re-hiring or replacing employees and there also separate provisions in relation to replacing employees with non-employees, for example agency workers.

The government has said it will be updating the statutory code of practice on dismissal and re-engagement to reflect the changes.

The government launched a consultation on two types of restricted variations relating to fire and rehire, asking for feedback as to which expenses, benefits and payments in kind, and shift patterns should be covered by the protections: GOV.UK. This consultation closed on 1 April 2026.

This change is expected to come into force in January 2027.

Impact and practical steps employers can take to prepare

These provisions will make it much harder for employers to implement changes to terms and conditions which employees do not agree to. It appears that the intention is for the financial difficulties exception to apply only in very limited circumstances, and it will likely involve presentation of specific supporting evidence by the employer and real scrutiny of business decisions. Further, even where changes do not fall within the ‘restricted’ category and therefore attract automatic unfair dismissal protection, a tribunal will still have to take into account factors such as level of consultation and anything offered in return for the variation when looking at whether a dismissal is fair.

Employers will want to audit contracts of employment ahead of the changes to understand what terms may be affected by the new rules and also review use of variation clauses in existing and future contracts (whilst noting the limitations to their use). These restrictions on ‘fire and rehire’ mean that good dialogue with employees and representative bodies will be key to making contractual changes. Employers should also note the related changes in the ERA to collective redundancy consultation obligations. Namely, the increase in the protective award and future introduction of an additional threshold to trigger collective consultation where dismissals are to be at more than one establishment.

Summary

There will be a new duty to offer guaranteed hours to zero-hours (and low-hours) workers if they have worked a certain number of hours over a defined reference period (likely to be 12 weeks). The duty will be an ongoing one at the end of each reference period until the worker is no longer a ‘qualifying worker’.  The duty may be disapplied by collective agreement. The protection will extend to agency workers (with responsibility for offering the guaranteed hours falling on the end-hirer as opposed to the agency). There will also be a duty to provide reasonable notice of shifts (and to cancel or change shifts) and entitlement to compensation for shifts cancelled, moved or curtailed at short notice. The proposals also include related protection against dismissal and detriment.

Many key details are yet to be confirmed and will need to be set out in regulations.  For example: the reference period; low hours threshold; conditions for reference period hours; the content, form and duration of the offer; and the definition of reasonable and short notice.

The government have now launched a consultation  on the detail of these measures, see:  GOV.UK. Consultation will close on 25 August 2026 and subsequent regulations will then be required to set out key detail. The consultation seeks views on issues including threshold hours (noting the government’s preference is stated to be to set this within a range of 8-20 hours); the reference period; regularity requirements; seasonal work and temporary need; the guaranteed hours offer calculation; reasonable and short notice; calculation of the short notice payment; and exemptions/exclusions. It also seeks views on the FWA being able to enforce the right to short notice payments and impose penalties of 50% of arrears owed.

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare

This is one of the most controversial aspects of the ERA and the provisions are complex with many areas still to be clarified by regulation. In practice the provisions may result in a reduction in the use of zero hours and low hours contracts and even use of agency workers. The proposals present a particularly significant concern for some employers, for example those with seasonal fluctuations.

There is concern about the administrative burden associated with the ongoing duty. Additionally, the default position is that any offer of guaranteed hours will need to involve a permanent change to terms and conditions, albeit there are some circumstances where it will be possible for a contract to be fixed term. However, there is much uncertainty about how this exception will operate in practice.

There are steps that employers can look at taking now to prepare for change including:

• Auditing current practices to understand the potential impact of the changes.
• Reviewing the use of fixed term contracts.
• Making sure technology and processes are in place to track hours worked over reference periods, monitor when guaranteed hours obligations trigger, and manage shift allocation and cancellations.

It will also be important to monitor developments as much of the key detail is yet to be confirmed.

Summary

Paternity leave (but not paternity pay) is now a day one right for eligible employees and the restriction on taking paternity leave and receiving statutory paternity pay following a period of shared parental leave and shared parental pay has been removed. Unpaid parental leave is now also a day one right for eligible employees.

These changes came into force on 6 April 2026. However, there are some transitional provisions.

Impact and practical steps employers can take

The changes are intended to align these entitlements with other family leave entitlements and provide more flexibility for employees to take advantage of the different types of leave available.

Employers will need to ensure they have reviewed and updated relevant policies in light of the changes.

[Separately, employers should also be aware of new provisions relating to bereaved partner’s paternity leave which came into force on 6 April 2026.]

Summary

Further protections from dismissal for pregnant women and new mothers will be introduced by regulations prohibiting dismissal up to six months after their return to work, except in specific circumstances. Protection is therefore being extended beyond the existing provisions around redundancy. It is unclear whether the government will pass regulations in respect of other types of family leave.

The government launched a consultation on the detail of the provisions on 23 October 2025, which closed on 15 January 2026. This covered when dismissal would be allowed, when the protection should start and end and whether other parents should be protected. See: GOV.UK. Subsequent regulations will be required.

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare.

Whilst further detail is awaited, it is clear that the focus is on creating more family-friendly workplaces and retaining women in the workplace. As well as other family friendly measures in the ERA, the government is already conducting a separate 18-month review of the parental leave system which could result in wider changes. By understanding and preparing for these proposed changes, employers can ensure compliance and position themselves as supportive, family friendly organisations.

Key steps that employers can take now to prepare for the change include:

• Reviewing current practices to ensure current legal requirements are being met.
• Staying informed about developments under the ERA and be prepared to update policies and train managers to ensure decisions are made in line with the new legal position.
• Continuing to ensure that any dismissal decisions are properly documented and supported by clear evidence and records kept.

Summary

Parents who lose a child are already entitled to two weeks paid time off as statutory parental bereavement leave. Bereavement leave is to be extended under the bill to certain relationships beyond parent and child and extended to include pre-24 weeks pregnancy loss. There will be a day one right to at least one week of leave.

The government launched a consultation on the detail of these provisions on 23 October 2025 which closed on 15 January 2026. Views were sought on eligibility criteria; types of pregnancy loss in scope; when and how bereavement leave can be taken; and notice and evidence requirements. See: GOV.UK. Subsequent regulations will provide further detail.

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare

There is no suggestion that the new rights will be paid, which may affect uptake. Many employers also already provide bereavement leave in these wider circumstances such that these changes may not have a material impact. However, a clear minimum requirement will be set.

Employers should stay informed about the developments and be prepared to update policies in line with the new legal position.

Summary

Flexible working rights are to be extended so that, in addition to needing to rely on one or more of the eight statutory grounds to refuse a flexible working request, it must also be reasonable for the employer to refuse the application on that ground/grounds.

There is power to set out in regulations what is reasonable and the steps required for consultation with an employee about a request.

The government launched a consultation on flexible working on 5 January 2026. They sought views on the new process for employers to follow when handing flexible working requests (and the consultation document incudes a suggested process), views on other ways to improve access to flexible working and what training, resources and support can help businesses navigate flexible working requests. Consultation closed on 30 April 2026. See: GOV.UK

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare

There is already a day one right to request flexible working and the introduction of this test of reasonableness relating to the substantive reason for refusal will make it more difficult for an employer to refuse a request. The change may lead to more claims for a breach of the statutory right, and although the sanctions for non-compliance are limited to eight weeks pay, it should be remembered that a refusal of a flexible working request can also give grounds for a discrimination claim in some circumstances which presents a potentially more significant issue for an employer.

Employers should make sure they have a clear policy on dealing with requests for flexible working and monitor developments so they can amend that as necessary to reflect the changes.

Summary

The definition of a ‘qualifying’ disclosure is amended to include a report that sexual harassment has occurred, is occurring or likely to occur.

This change will came into force on 6 April 2026.

Impact and practical steps employers can take

This is arguably already covered within the definition of a qualifying disclosure, but the ERA sets this out expressly.

Employers will need to ensure they have reviewed relevant policies in light of the change. They will also need to ensure that appropriate protection is in place for workers who report sexual harassment, so they are not subjected to any detriment or dismissal as a result. Particular care will need to be taken when dealing with a grievance or disciplinary matter in relation to an employee who has previously raised a complaint about sexual harassment in case a connection is made. Disclosures about sexual harassment should also be excluded from the scope of any confidentiality provisions, for example in a settlement agreement.

Summary

The current duty on employers to take “reasonable steps” to prevent sexual harassment of their employees will be extended to take “all” reasonable steps. The remedy for non-compliance is not changing, and a breach of the duty is something that will be taken into account in the event that a complaint of sexual harassment is successful and compensation awarded (in these circumstances compensation may be uplifted by up to 25%).

A new obligation on employers in relation to harassment of their employees by third parties will also be introduced (in relation to all protected characteristics). Employers must not permit a third party to harass their employees, and will have done so if the third party harasses the employee in the course of their employment with the employer and the employer failed to take all reasonable steps to prevent that. A breach of the duty will enable an employee to bring a standalone claim.

The government has said it intends to consult on what will amount to reasonable steps in relation to sexual harassment and there is a power to make regulations specifying such steps, but they are not expected to come into force until 2027. In the meantime, the ERA provides that they will cover: carrying out assessments of a specified description; publishing plans or plans of a specified description; steps relating to the reporting of sexual harassment and steps relating to the handling of complaints.

These changes are expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

These changes will raise the bar for employers in relation to harassment. Until any regulations specifying the steps regarded as reasonable in relation to the duty to prevent sexual harassment come into force, there may be some uncertainty as to what is required. As for the new third party harassment provisions, these go further than those which were repealed back in 2013, and will be particularly difficult for employers whose staff frequently come into contact with third parties.

Employers should be exploring further steps they can take to meet the new duties now. For example:

• Carrying out comprehensive risk assessments and staff surveys to help inform steps to take.
• Reviewing commercial terms with third party contractors to ensure anti-harassment provisions are embedded.
• Considering installing visible signs in areas where third parties interact with employees which set out that harassment will not be tolerated and detailing where such conduct can be reported.
• Providing adequate opportunities and means for employees to raise concerns or complaints and ensure those are effectively communicated.
• Putting in place a specific protocol of action managers should take once a report of harassment has been made.
• Monitoring policy compliance and ensuring effective action is taken in relation to incidents of harassment.
• Reviewing and updating polices to account for the new duties.
• Putting in place a regular anti-harassment training programme, tailored according to levels within the organisation.
• Reviewing the current EHRC guidance which can be found here: Sexual harassment and harassment at work: technical guidance | EHRC, noting that it is yet to be updated to reflect these upcoming changes to the law. The EHRC have also recently published a report summarising research it commissioned on workplace harassment, which includes a number of practical insights relevant to the design of policies and practices to tackle harassment in the workplace.

Summary

There will be new requirements for employers with at least 250 employees to create and publish gender equality action plans under the ERA. Further detail will need to be set out in regulations, but the action plans will need to include steps to address the gender pay gap and support employees experiencing the menopause. Employers will be required to publish their action plans on the gender pay gap reporting portal.

On 4 March 2026 the government published some guidance for employers on the new requirements. The published guidance constitutes (i) an overview guidance document for employers and (ii) a collection of webpages setting out lists of recommended, evidence-based actions which an employer can include in their action plan. See: GOV.UK. On 7 April 2026 the government published further, more detailed, guidance on creating gender equality action plans which sets out six steps for employers to take: GOV.UK.

This change is expected to come into force in April 2027, although it was introduced on a voluntary basis on 6 April 2026.

Impact and practical steps employers can take to prepare

Many employers will already be required to publish gender pay gap information, but do not voluntarily publish an associated action plan, so the introduction of the mandatory requirement will represent a step up in obligation.

Employers will want to consider what further steps they may take to address the gender pay gap and support employees going through the menopause in good time for the new obligation to publish action plans coming into force.

Separately, employers will want to keep an eye out for further developments in relation to mandatory ethnicity and disability pay gap reporting which the government has confirmed it intends to introduce for employers with 250 or more employees under a future Equality (Race and Disability) Bill. The government has published a response to consultation on this: Equality (Race and Disability) Bill: mandatory ethnicity and disability pay gap reporting – GOV.UK. No timeline for introduction has been provided so far. The government has said it intends to provide guidance and practical tools to support employers in due course.

Summary

There will be new obligations on the provision of equality information relating to outsourced workers. Private and voluntary sector employers with 250 or more employees in Great Britain will be required to publish information about service providers they contract with for outsourced services. English public authorities and cross border public authorities will also be required to publish such information.

The government will need to make regulations dealing with the detail of what must be reported.

The timing of the introduction of this measure is expected to be dependent on timelines of broader changes to pay gap reporting.

Impact and practical steps employers can take to prepare

The government have indicated that these measures will mean   organisations can be held accountable for pay gaps that exist in companies they outsource from and motivate them to support efforts to improve equality in organisations they are linked to.

It will be even more important for service providers to seek to take action to tackle the gender pay gap in light of the proposed requirement for related information to be published.

Summary

There will be new rules relating to non-disclosure agreements (NDAs) that prevent workers from making allegations or disclosures relating to discrimination or harassment. Such NDAs will effectively be banned, with regulations to set out the circumstances in which they can be used.

Provisions in the ERA will introduce a new measure to void any provision in an agreement between a worker and their employer in so far as it prevents a worker from speaking out about: relevant harassment or discrimination; or their employer’s response to the relevant harassment or discrimination, or the making of an allegation of relevant harassment and discrimination. The ERA sets out what ‘relevant harassment or discrimination’ is and further regulations will set out details around ‘excepted agreements’.

On 15 April 2026 the government published a consultation on the misuse of NDAs: GOV.UK. The consultation will close on 8 July 2026. It seeks views on proposals regarding the conditions which need to be met for NDAs to still be validly entered into (excepted agreements) and the individuals or bodies who workers covered by an excepted agreement can speak to about the harassment and discrimination, irrespective of what their NDA says. It also seeks views on whether the provisions should be expanded to cover a broader group of individuals in the future.

This change is expected to come into force in 2027.

Impact and practical steps employers can take to prepare

There has been long standing concern about the abuse of NDAs, particularly where they prevent disclosure about sexual harassment. NDAs preventing disclosures by victims of criminal conduct have already been the subject of recent regulation along with NDAs in higher education, and it was expected that there would be further regulation in this area.

Employers should be reviewing their use of NDAs, in light of current rules but also in preparation for this change.

Summary The ‘lower earnings limit’ for Statutory Sick Pay (SSP) eligibility has been removed and the weekly rate of SSP is the lower of the prescribed weekly rate and 80% of normal weekly earnings. The three-day waiting period for SSP is also removed so SSP is a day one right.

This change came into force on 6 April 2026. However, there are some transitional provisions. HMRC have published some guidance on the changes and sickness absences which start before and end on or after 6 April 2026: Sickness absences that start before and end on or after 6 April 2026 – GOV.UK

Impact and practical steps employers can take

These changes will mean that employers will face increased liability for SSP.

As well as ensuring internal systems, relevant policies and procedures are updated, employers will want to explore steps they can take to support employees to reduce levels of sickness absence, including ways of supporting the mental wellbeing of employees.

Summary

Workforce consultation between employers and trade union or workers’ representatives, or directly with workers, will be required in relation to a business’s written policy on the distribution of tips (which seeks to ensure fairer allocation). There will be a requirement to further consult and review policies at least every three years. Employers will be required to make available to workers an anonymised summary of the views expressed in the consultation.

The government launched a consultation on these new requirements on 5 January 2026, which closed on 1 April 2026. The government published a response to the consultation and laid a revised code of practice before parliament on 29 June 2026:  GOV.UK. However, the revised code has been withdrawn and it is anticipated that a replacement will be issued in due course. Once approved, commencement regulations will follow to bring the new measures and updated code into effect. The government have said that further guidance will follow.

This change is expected to come into force by the end of 2026.

Impact and practical steps employers can take to prepare

This change will build on recent changes to the law in relation to tipping and increase fairness by giving workers more of a voice about the distribution of tips. However, for multi-site employers in particular, consultation may not always be straightforward. Employers in affected sectors will need to review the revised code of practice and further guidance when they are published. Auditing existing tipping arrangements and policies and starting to think now about how and when to consult with workers will help employers get prepared for the change.

Summary

Adult Social Care Negotiating Bodies will be established by regulations with the intention of creating a fair pay agreement for adult social care workers. Such a body would consist of employer and trade union representatives.

On 30 September 2025 the government announced a consultation on how the fair pay agreement process in England will work. Consultation closed on 16 January 2026. See: GOV.UK. The Scottish and Welsh governments will engage on the proposal separately.

Separately the ERA will also establish a School Support Staff Negotiating Body (SSSNB) for school support staff in state-funded schools in England.

Summary

The Procurement Act 2023 will be amended to protect transferring workers on outsourcing contracts and those working alongside them. The intention is to effectively reintroduce and strengthen the “Two Tier Workforce Code” and avoid a situation where ex-public sector and private sector employees are employed on different terms and conditions.

The government are expected to introduce regulations and a new statutory code of practice.

This change is expected to come into force in October 2026.

Impact and practical steps employers can take to prepare

Employers who acquire public sector employees will need to ensure that they comply with the new provisions, and the changes may also have cost implications that will need to be taken into account in the procurement process.

Summary

The Fair Work Agency (FWA) was established on 7 April 2026 and consolidates the labour market enforcement functions of various existing state agencies.

The FWA will police compliance with laws relating to issues such as national minimum wage, modern slavery and agency workers (and over time it is expected to take on the enforcement of a range of other employment rights including holiday pay and SSP).

The FWA has now taken over the existing enforcement functions of the Employment Agency Standards Inspectorate (EASI) in relation to agency workers and the Gangmasters and Labour Abuse Authority (GLAA) in relation to gangmaster licensing and labour exploitation. It is understood that NMW enforcement will continue to be delivered by HMRC under a contracting arrangement with the FWA, with full transfer of NMW functions to the FWA expected in April 2027. Responsibility for other rights, including enforcement in relation to holiday pay and SSP is to follow in due course. Some FWA powers are already in place, whilst others will be granted in due course.

A policy paper setting out government expectations for the FWA in the transitional year 2026/2027 was published on 7 April 2026: GOV.UK. On 7 April 2026 the FWA published an enforcement policy statement: GOV.UK and a Code of Practice on Fair Work Agency Labour Market Enforcement Undertakings and Orders: GOV.UK.

See below for further information about FWA enforcement of holiday pay.

Impact and practical steps employers can take

Many of the powers of the FWA reflect those already exercised by other bodies. However, the creation of the body is an indication of the intention to take more action to tackle systemic non-compliance.

Employers should be auditing their practices to ensure compliance with the relevant statutory frameworks and taking all necessary steps to ensure compliance.

Summary

The limitation period to bring most claims in the Employment Tribunal will increase from three to six months under the ERA. Certain types of claim were not included in the ERA provisions, but regulations have now been made separately to deal with those.

Although commencement regulations and transitional provisions are awaited for the claims dealt with under the ERA, based on the regulations referred to above, the change is now expected to come into force on 1 October 2026 and it is also likely that the change will not be retrospective. ( The updated implementation timeline says that the change for breach of contract claims for Scotland will take effect from 9 November 2026).

Impact and practical steps employers can take to prepare

Employers will have longer to seek to resolve a dispute as a result of this change. However, the longer limitation period will also create a longer period of uncertainty as to whether a claim may land, and also likely mean it takes longer for cases to get to hearing which can impact negatively on witness evidence.

Note that separately the government extended the ACAS early conciliation period from six weeks to twelve weeks with effect from 1 December 2025.

Employers should ensure processes are in place for preserving documents and taking contemporaneous statements from witnesses, rather than waiting until tribunal-imposed deadlines. More employers may decide to seek out certainty through increased use of settlement agreements.

Summary

Umbrella companies will be brought within the definition of employment business to enable regulation. This is an effort to crack down on perceived non-compliance resulting from loopholes in the existing law.

The government launched a consultation on modernising the agency work regulatory framework on 6 February 2026 : GOV.UK. The consultation sought views on how the regulatory framework should be adapted to account for the activities of umbrella companies and what broader changes should be considered in order to modernise the rules. The consultation  closed on 1 May 2026.The new definition of employment business and amended regulations are both expected to come into force in 2027.

Impact and practical steps employers can take to prepare

Umbrella companies and other parties in the supply chain will need to take advice to ensure their arrangements are compliant.

Summary

There are new obligations on employers to keep records which are adequate to demonstrate compliance with obligations regarding entitlement to annual leave and pay for annual leave under the working time regulations. Records must be kept for 6 years from the date they were made. Failure to comply with the obligation will constitute an offence. Enforcement will fall within the remit of the new FWA in 2027.

This obligation came into force on 6 April 2026.

Impact and practical steps employers can take

Employers should ensure the required records are kept and that they can demonstrate compliance.

Summary

The government have confirmed that the FWA is expected to commence holiday pay compliance and enforcement from 2027.

The government launched a consultation on holiday pay compliance and enforcement by the FWA on 30 June 2026: Make Work Pay: holiday pay compliance and enforcement – GOV.UK. The consultation closes on 22 September 2026.

The consultation says that FWA compliance and enforcement activities will include: raising awareness and offering guidance and support to employers on how to comply with the law; promoting compliance with ‘nudge’ activity; investigating claims of non-compliance and carrying out proactive inspections; and issuing notices of underpayment for arrears and a civil penalty.

The consultation seeks views on a range of issues including:

• How far back the FWA could look when investigating a holiday pay claim – the government is proposing up to six years (but says that holiday pay claims will not be enforceable by the FWA if they occurred before Royal Assent of the ERA).
• Civil penalty settings – the proposal is that this will be a penalty of 200% of arrears owed to workers with a maximum penalty of £20,000 per worker and minimum of £100.
• Whether businesses should be named and shamed for holiday underpayment in the future.
• How the FWA can target compliance and enforcement interventions to best support lower paid workers and those in more vulnerable and precarious employment – possible mechanisms mentioned for this are capping the maximum arrears a worker can receive from the FWA; triaging holiday pay complaints; and targeting geographical areas.
• Current practices around rolled up holiday pay to help build an evidence base on how, and to what extent, rolled up holiday pay is being used in practice.

Impact and practical steps employers can take to prepare

The introduction of state enforcement of statutory holiday pay through the FWA emphasises the need for employers to act now to audit their practices and take any necessary steps to ensure they are compliant. Employers should also ensure they are complying with the new statutory holiday pay record keeping requirements already in place under the ERA.

Employers should also note that the FWA will be able to carry out investigations into both holiday pay and NMW compliance.

Summary

The Strikes (Minimum Service Levels) Act 2023 was repealed on Royal Assent. This enabled the Secretary of State to set minimum service levels for strikes in a number of relevant services in health, transport, education, fire and rescue, border control, nuclear decommissioning and radioactive waste management services.

Impact

Although secondary legislation has been introduced in a number of service areas, the government have indicated that employers have not been issuing work notices requiring minimum service levels in practice and so repeal is unlikely to have any real practical impact on employers.

Summary

The great majority of the Trade Union Act 2016 (TU Act) has been repealed. This includes repeal of: changes to public sector check off; changes to facility time; and the requirement for union supervision of picketing. See also ‘changes to rules for industrial action ballots and industrial action’ below.  There are a number of other changes relating to the repeal of the TU Act concerning devolved Welsh authorities, a union’s political funds, annual returns to the Certification Officer and Certification Officer powers.

These changes came into force on 18 February 2026. It should be noted that there are some related transitional and saving provisions. The government have published some guidance on those provisions: GOV.UK.

[A further change related to the repeal of the TU Act is that the power requiring trade union and employer associations to pay a levy to the Certification Officer is removed, this came into effect on 1 April 2026.]

Impact and practical steps employers can take

These are the first of a number of changes designed to strengthen the rights and influence of trade unions in the workplace.

For employers, removal of the requirement for union supervision of picketing under S220A of the TU Act may make it harder to plan for and manage picketing activity, increasing risks around site security, business continuity and compliance monitoring. The Code of Practice on Picketing has been revised to reflect the changes: GOV.UK. Overall, this change may shift the balance of control during industrial action, giving unions greater flexibility and reducing employers’ ability to mitigate disruption. Employers are likely to face greater uncertainty about how picketing will be conducted and how quickly they can resolve issues on the picket line.

Looking ahead at the full suite of changes in relation to trade unions and industrial relations, it remains to be seen how significant a shift there will be in the industrial relations landscape, but the changes, including repeal of the majority of the TU Act, do mean that employers should act early and review their employee and industrial relations strategy, including contingency plans.

Summary

Industrial action ballot and notice requirements have been simplified with less prescriptive content requirements – less information is required to be included by unions in the notice of industrial action ballot they send to employers, on an industrial action ballot voting paper and in notice to employers of industrial action.

The notice of  industrial action a union is required to give to an employer is reduced from fourteen days to ten days.

A valid ballot will give a mandate for industrial action for twelve months (instead of six).

The 40% support threshold for industrial action for workers engaged in important public services is repealed.

The government have published a revised code of practice on industrial action ballots and notice to employers: GOV.UK.

These changes came into force on 18 February 2026. It should be noted that there are some related transitional and saving provisions. The government have published some guidance on those provisions: GOV.UK.

[Note that the requirement for a turnout of at least 50% of those entitled to vote for industrial action is also due to be removed (so a ballot will simply need a majority of those voting). This will require separate regulations, it is not known when this change will be introduced although it was expected to be linked to the introduction of e-balloting in August 2026.]

Impact and practical steps employers can take

The amendments will make it ‘easier’ to strike (or conduct other industrial action) with action able to be taken at shorter notice, without clear descriptions of who will be involved, and with the threat of action for a whole year once validly balloted. This may lead to a shift in bargaining dynamics – prolonged leverage, greater operational and financial pressure, and potential for concessions – resulting in greater disruption to a business under threat of and/or in the event of a trade dispute.

Employers will therefore want to start to strengthen relationships with trade unions and ensure well defined processes for negotiation are included in collective agreements.

Summary

The rules around dismissal for participating in industrial action are complex, but protection is enhanced by removing the protected period (broadly the first 12 weeks of industrial action) for automatic protection for employees from unfair  dismissal for taking part in protected industrial action. This means that this protection applies irrespective of the length of industrial action.

This change came into force on 18 February 2026. It should be noted that there are some related transitional provisions. The government have published some guidance on those provisions: GOV.UK.

Impact and practical steps employers can take

Whilst some protection was already in place, employers will need to take extra care if dismissal of an employee who is/has been involved in industrial action is being considered

Summary

The statutory procedure for trade union recognition has been simplified. This includes the ability for the government to lower the required percentage of trade union members in the bargaining unit for the CAC to accept a trade union application, and at other stages of the recognition scheme, to a figure between 2% and 10% (it is currently 10%). It also includes removing the requirement for the union to demonstrate that there is likely to be majority support for trade union recognition. It also includes removing the 40% support threshold from recognition ballots.

Changes related to simplifying the trade union recognition process came into force on 6 April 2026. There are some transitional and saving provisions.

[Note that there are a number of other measures concerning recognition which relate to provision of information about workers in the bargaining unit by the employer, access agreements and unfair practices. These are expected to come into force in October 2026.]

Impact and practical steps employers can take

These measures may make securing trade union recognition easier to achieve and employers may find that they face more recognition applications, particularly when combined with other union friendly measures such as the new right of trade union access to the workplace.

Employers who have not previously had to deal with unions should be ready for the possibility of recognition applications and the need to work with trade unions in the future. Proactive employee relations strategies will become even more important so that employees are engaged and feel their concerns are addressed.

Summary

Statutory trade union ballots conducted under TULRCA 1992 (including for industrial action) must be held by post currently. The government plans to modernise voting methods by introducing: electronic voting; hybrid voting (material distributed by post with votes returned by post or electronically); and workplace balloting.

The government launched a consultation on a draft code of practice to ensure the new voting methods are applied fairly, legally and securely which closed on 28 January 2026. The government published a response to that consultation on 23 June 2026 and a revised code of practice has now been laid before parliament along with secondary legislation to permit electronic and workplace balloting: GOV.UK. The changes relating to electronic and workplace balloting for statutory trade union ballots are expected to come into force by 31 August 2026.

[Note that recognition and derecognition ballots can currently be carried out using postal or workplace ballots, the government plans to introduce electronic balloting for such ballots, this is expected to be in 2027 (see below).]

Impact and practical steps employers can take to prepare

The government believes that this change should bring balloting in line with modern voting practices that political parties and listed companies already use, and that allowing these additional methods could increase participation and increase democratic mandates.

Whilst the focus is on trade union processes and responsibilities, employers should ensure they have an understanding of what is expected. The code of practice notes workplace balloting will require the employer’s consent and an access agreement. It says that employers should consider requests with an open mind, and if rejecting the request clearly explain the reasons for doing so to the union. It goes on to set out a number of provisions which an access agreement should include at a minimum regarding the employer.

Summary

A new duty to inform workers of their right to join a trade union will be introduced, this will be at the same time as a S1 statement and at other prescribed times.

Consultation on how this new duty should work in practice was launched on 23 October 2025 and closed on 18 December 2025: GOV.UK . Further substantive regulations will be required in relation to the detail around the duty, including the form and content of the statement and the manner in which it must be given.

This change is expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

This may lead to greater trade union visibility in the workplace which, when combined with the improved right of access, could lead to greater union membership and presence in the workplace.

Employers will need to watch out for the outcome of the consultation and further regulation, so they are ready to comply with the new duty when it comes into force.

More generally, it will be important for employers to consider their industrial and employee relations strategy given the shifting emphasis on equal bargaining power between individuals and businesses.

Summary

Trade union right of access to the workplace will be strengthened. There will be a new statutory right of access for trade unions to engage with workers (including in person or digitally) for the purposes of representation, support, recruitment, organisation and facilitating collective bargaining (but not to organise industrial action). The scope of the new right covers physical entry to the workplace as well as communication (directly and indirectly). The right of access will be facilitated through Access Agreements between trade unions and employers, with the CAC determining access applications if agreement cannot be reached.

Consultation on this change was launched on 23 October 2025 and closed on 18 December 2025. The government published a response to that consultation and launched a new consultation on a draft statutory code of practice which closed on 20 May 2026. A response to that consultation has now been published and an updated code of practice and regulations setting out further details as to how the new right will operate have been laid before parliament: GOV.UK. The code of practice and regulations deal with how access requests will be made and handled, the CAC’s approach to deciding whether access should take place and on what terms, the enforcement framework and how access arrangements might work in practice (the code of practice setting out detail in relation to location and timing, privacy, third parties, non-typical working patterns and digital access).

This change is expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

The new access regime represents a significant shift for UK industrial relations. Significantly, there is a presumption towards access and that trade unions should be able to physically enter a workplace or communicate with workers (or both) under the new framework, in a manner that does not unreasonably interfere with the employer’s business. The new right may lead to greater trade union visibility in the workplace which, when combined with the statement of rights, could lead to greater union membership and presence and, ultimately, potentially more recognition requests.

Employers need to be proactive and ready to deal with access requests. Key issues that employers should be considering now in preparation for the changes include:

• How likely is it to receive an access request?
• Is there a clear internal process in place for handling any access requests which are made?
• Is training needed for managers who will deal with requests and handle union engagement?
• What is the strategy if there is a request – is it better to reach agreement on voluntary terms rather than have an agreement imposed by CAC?
• What forms of physical and digital access would be reasonable in the context of the organisation?
• How can existing systems be used to facilitate digital access?
• What measures are needed to manage privacy, confidentiality and data protection issues?
• What standards of conduct will be expected?

Summary

Better rights and protections for trade union representatives will be introduced, including:

• Strengthening the existing right to reasonable paid time off for union representatives to carry out their duties, by establishing a requirement that the employer be able to show that the time off proposed was not a reasonable amount of time in the event of a tribunal claim;
• A right for trade union equality representatives to reasonable paid time off to carry out specified equality representative purposes and undertake related training; and
• A requirement for employers, where reasonable, to provide union representatives with access to accommodation and other facilities to enable them to carry out their duties and purposes.

ACAS launched a consultation on a revised code of practice in relation to this which closed on 17 March 2026. An updated code of practice has now been presented to parliament which gives practical guidance on these rights, including factors relevant to reasonableness: Acas.

This change is expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

Employers should ensure they are familiar with the new rights and guidance. This is another measure which may strengthen union presence in the workplace, and in light of this and other changes employers will want to look more widely at their industrial and employee relations strategy.

Summary

The ERA includes provisions to provide protection for workers against detriment on grounds of protected industrial action. Although the relevant provision in the ERA came into force on 18 February 2026, regulations to prescribe matters to constitute detriments are still required.

The government launched a consultation on the type of detriment which should be prohibited, and this closed on 23 April 2026. The government have now published a response to that consultation, see: GOV.UK. It has confirmed that it has decided to prohibit all detriments, rather than create a prescribed list. It will also allow compensation awards in detriment claims to be increased or decreased by 25% following a failure to follow the ACAS Code of Practice on Disciplinary and Grievance Procedures. Draft regulations have now been put before parliament and if approved are expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

This change follows the Supreme Court decision in Mercer and closes an existing legislative loophole.

Employers will need to ensure that extra care is taken when dealing with individuals to ensure they are not subjected to any detriment to prevent or deter them from taking part in industrial action, or to penalise them for doing so.

Summary

The ERA includes measures to strengthen union access and provisions concerning unfair practices in the trade union recognition/derecognition process.

The measures will include extending the application of legislation and the CAC Code of Practice on access and unfair practices to the entire recognition process from the point the CAC accepts the union’s application.

There are also measures which provide that within five working days of being notified of an application for recognition, an employer must provide certain information to the CAC about the workers in the bargaining unit. This is intended to prevent disputes about which workers should count for the purposes of the recognition process. There are also measures setting out a timetable for the parties to agree terms on which the union can access workers in the proposed bargaining unit.

The government launched a consultation on an updated code of practice on access and unfair practices during the statutory trade union recognition and derecognition process, which closed on 1 April 2026. A response has now been published and the revised code of practice laid before parliament: GOV.UK. The revised code of practice reflects the changes under the ERA and provides practical guidance on compliance. It has also been updated to reflect modern working practices, including digital access and increased the suggested frequency and duration of access meetings.

These measures are expected to come into force on 30 October 2026.

Impact and practical steps employers can take to prepare

These changes, along with those relating to simplification of the trade union recognition process flagged above may make securing trade union recognition easier to achieve, and employers may find that they face more recognition applications, particularly when combined with other union friendly measures such as the new right of access to the workplace.

Employers who have not previously had to deal with unions should be ready for the possibility of recognition applications and the need to work with trade unions in the future. Proactive employee relations strategies will become even more important so that employees are engaged and feel their concerns are addressed. Employers will need to be ready to comply with the new measures if they become involved in any recognition/derecognition process.

Summary

The rules relating to the blacklisting of trade union members will be strengthened.

Some amendments to the Employment Relations Act 1999 will be made following Royal Assent, and subsequent regulations will then be made to strengthen the rules. The government had said it would consult on the detail in winter 2025/early 2026.

This change is expected to come into force in 2027.

Summary

Currently, statutory recognition/derecognition ballots may be carried out using postal or workplace balloting. The government plans to modernise voting methods and allow for electronic voting and hybrid voting.

The government launched a consultation on proposals relating to unfair practices in electronic ballots on 4 February 2026: GOV.UK. This consultation closed on 1 April 2026.

The change relating to balloting for recognition and derecognition ballots is not expected to come into force until 2027. [Note separately, that change relating to electronic and workplace balloting for statutory trade union ballots is expected to come into force by 31 August 2026 – see above].

Impact and practical steps employers can take to prepare

The government believes that this change should bring balloting in line with modern voting practices that political parties and listed companies already use, and that allowing these additional methods could increase participation and increase democratic mandates.

Although the responsibility of employers in relation to any changes to balloting will be limited, they will need to monitor developments to ensure they have an understanding of what is expected.