As we look ahead to 2026, HR professionals and business leaders across the UK must brace for one of the most ambitious overhauls of employment legislation in decades. Many of the reforms are embedded in the Employment Rights Bill (and the associated “Make Work Pay” plan) and roll out in stages across 2026 and beyond. Understanding what’s coming, and preparing now, could be the difference between being reactive and being ready.

Below is a guide to the major changes to watch — and six practical steps your HR team should be taking now.

April 2026 –

• Statutory Sick Pay (SSP) becomes a day‑one right, and the lower earnings threshold is removed.
• Paternity leave and ordinary parental leave become day‑one rights (no length‑of-service requirement).
• Collective redundancy protective awards double (from 90 days to 180 days’ pay).
• Sexual harassment is added as a protected disclosure for whistleblowing purpose.
• Simplification of trade union recognition, plus electronic and workplace balloting rights.
• Establishment of the Fair Work Agency to unify enforcement functions (e.g. holiday pay, SSP, employment rights).

These shifts will carry significant cost and compliance implications:

• SSP from day one increases liability for short-term sickness

• HR policies and leave‑management systems will need updating

• Budgeting for increased redundancy awards

• Revised whistleblowing and grievance procedures

• New enforcement landscape via the Fair Work Agency

In addition to these sweeping reforms, don’t forget the annual April 2026 “rate changes” that always come: National Minimum Wage / National Living Wage adjustments, New rates for Statutory Maternity / Paternity / Parental Pay, revisions of the statutory cap on a week’s pay (used in redundancy and unfair dismissal calculations)

October 2026 –

• “Fire-and-rehire” practice becomes (in many cases) automatically unfair dismissal unless strict conditions are met
• Employers will have a duty to take “all reasonable steps” to prevent sexual harassment, including by third parties.
• Time limits for bringing most employment tribunal claims extended from 3 to 6 months.
• A “duty to inform” workers of their right to join a trade union; enhanced union access rights.
• Tightened tipping legislation: employers will need to consult workers on tip policies, review policies periodically.
• Two‑tier workforce rules in public‑sector outsourcing (to prevent disparate terms for former public vs private sector staff).

October changes demand careful tactical planning:

• Reassessment of contractual variation practices.

• Training for managers on harassment prevention.

• Ensuring union / worker communication channels.

• Adjusting tipping and service charge policies.

• Revising procurement/outsourcing practices to avoid two-tier issues.

Why 2026 Matters More Than Ever

• Significant liability spikes: Whether via SSP from day one, double redundancy protective awards, or new tribunal time limits, many changes will increase financial exposure.
• Contractual change becomes higher risk: With “fire-and-rehire” reforms and stricter rules around contract variations, HR teams must tread carefully.
• Culture, not just compliance, will be tested: Harassment prevention rules and whistleblowing expansions demand genuine shifts in behaviour, not just updated policies.
• New enforcement architecture: With the arrival of the Fair Work Agency, centralised enforcement could lead to more scrutiny and claims.
• Lead time is short: Because many changes roll out in stages, HR planning must start now, not when the law is live.

6 Practical Steps HR Should Take Now to Prepare

1. Audit and gap‑assess current policies and contracts
   Review your SSP, leave, variation, redundancy, harassment, whistleblowing, and union engagement policies. Map how they will need to change post‑2026.
2. Scenario‑plan cost impact and financial modelling
   Estimate the additional cost of SSP from day one, increased protective awards, and potential tribunal exposure. Build contingencies into your budgeting.
3. Train managers and leaders early
   Equip them around handling disagreements, harassment, contract changes, union engagement, and investigatory processes. Behavioural shift is as important as legal shift.
4. Communicate proactively with employees / unions
   Where change is coming, start educating your workforce early. Be transparent about new rights, processes, and expectations.
5. Update systems, workflows and HR tech
   Leave and sickness trackers, payroll systems, contract templates, onboarding — ensure your tech can handle new entitlements, accruals, and reporting.
6. Stay plugged into forthcoming regulations and consultations
   The Employment Rights Bill leaves many details to secondary legislation and codes of practice. Stay agile and monitor government consultations and drafts.

Bonus: consider engaging external support – As a full service HR Consultancy we are perfectly placed to guide you through the variety of changes on the horizon.

2026 is shaping up to be a watershed year for employment rights in the UK. Much of what once required service, or seniority will shift to day-one rights. What were once optional employer practices will become legal obligations. The cost and compliance stakes are rising.

But with foresight, planning, and a proactive HR strategy, you have the opportunity to guide your organisation through these changes—not just to survive them, but to thrive amidst them.