Employment Law: What Is Coming in 2026?

2026 brings significant changes to employment law in the UK, impacting both employers and employees. This article by Howell Jones outlines the key legal updates and financial changes set to take effect in 2026 and beyond.

Key Takeaways

• Employment Rights Bill 2025: Introduces major changes, including earlier unfair dismissal claims, expanded family leave, and day-one sick pay.

• Stronger employee protections: Sexual harassment is now a qualifying disclosure, and employers have new duties on harassment prevention, industrial action, and tipping policies.

• Howell Jones Solicitors: Our Surrey employment solicitors can help your business prepare for and comply with the upcoming changes in 2026.

The Employment Rights Act 2025

The Employment Rights Bill received Royal Assent in December 2025, and therefore, the following is set to occur in 2026:

• 18^th February 2026: When it comes to industrial action, ballots and notice requirements are to be simplified.
• April 2026:
  • Statutory sick pay (SSP) – Employees will have an entitlement to sick pay from the first qualifying day of absence. Removal of the Lower Earnings Limit, all employees will qualify for SSP regardless of the level of their earnings.
  • Collective redundancies – If there is a failure to inform and consult, then the protective award will be doubled.
  • Industrial relations – If you work or own a company in an industry with a trade union, the recognition process will be simplified, and e-balloting is to be introduced.
  • Family leave expansion – paternity leave and unpaid parental leave will become day one rights.
  • Fair Work Agency – a separate, enforcement body will be established.
  • Sexual harassment will become a “qualifying disclosure” under the whistleblowing law.
• 1^st July 2026: From 1^st January 2027, employees will be able to bring a claim for unfair dismissal after six months instead of two years. Employees employed from 1^st July 2026 onwards will have these rights retrospectively and therefore will be able to bring a claim for unfair dismissal from 1 January 2027.
• October 2026:
  • Employment Tribunals – The time limit for claims will be extended to six months.
  • Harassment protections – In addition to the new duties on employers that came into force in October 2024, an employer will now be required to take all reasonable steps to prevent sexual harassment. In addition, employers will be liable for harassment from third parties, unless they take all reasonable steps to prevent all types of harassment.
  • Fire and rehire – If an employee refuses a restricted variation in their employment terms, they will have significant new protections.
  • Industrial action – If you work or own a company in an industry with a trade union, from now on the union will have the right to access workplaces, and you will have a duty to inform employees/workers that they have a right to join a union.
  • Tipping law – Employers will need to consult before creating a policy in respect of tips and update their policy every three years.

2027 and Beyond

There will be a number of changes that will happen in 2027, but we await further information with respect to the roadmap for these changes.

As above, from January 2027, employees will have a right to bring a claim for unfair dismissal after six months instead of two years.

Financial Changes

From April 2026, the following will change:

• National Living Wage (age 21 and over) – £12.71
• National Minimum Wage (18-20 year old rate) – £10.85
• National Minimum Wage (16-17 year old rate) – £8.00
• Apprentice rate – £8.00
• Statutory Sick Pay – Increase to 80% of normal pay or £118.75 per week, whichever is lower

ACAS Early Conciliation

Towards the end of 2025, ACAS increased their conciliation period to 12-weeks due to the severe pressure on it and the Employment Tribunal system. Whilst we are only six weeks into the change, considering the number of employment tribunal claims is likely to increase due to employees being able to bring claims for unfair dismissal after six months’ service, it will be interesting to see if the changes to Acas Early Conciliation will help or if further changes will follow in 2026 and beyond.

If you are unsure about any of these changes, Howell Jones Surrey solicitors is here to help. For more details on the above and to ensure your company is compliant, please contact our employment solicitors in Surrey today.