Employment Law Changes for Employers: Key Updates for 2025 and What’s Coming in 2026

Employers in England and Wales witnessed a wave of legal reforms in 2025 and there are more sweeping changes to come in 2026 as a result of the Employment Rights Bill.

Katie Ash, Head of Employment Law at Banner Jones Solicitors, explains that employers should familiarise themselves with these Employment Law changes—and preparing accordingly— for sound employment law and HR compliance.

In this article, Katie outlines some of the key changes for 2025/26 and explains some of the actions that employers should take.

 

What Employment Law changes happened in 2025?

1. Neonatal Care Leave

From 6 April 2025, eligible employees became entitled to one week of additional leave—paid at statutory rates—for each week their newborn is in neonatal care, up to a maximum of 12 weeks.

2. ACAS Early Conciliation Extension

From 1 December 2025, the early conciliation window before employment tribunal claims doubled from 6 to 12 weeks. This extends the pause on the limitation period for bringing a claim, meaning disputes may linger for at least nine months before proceeding.

 

What Employment Law updates are coming in 2026?

April 2026

• Unfair Dismissal, Paternity Leave & Parental Leave
• Statutory Sick Pay (SSP) becomes payable from day one, removing both the lower earnings limit and the three-day waiting period; SSP increases to £123.25 per week.
• New day-one rights introduced for paternity leave and unpaid parental leave.
• Collective Redundancy
• Protective awards for failing to consult properly will double to 180 days’ pay (up from 90 days).
• Fair Work Agency
• A new enforcement body will launch to oversee SSP, minimum wage, holiday pay, zero-hours misuse, and more.
• Trade Union Reforms & Industrial Action
• Electronic balloting introduced.
• Salary & Pay Updates
• National Living Wage increases to £12.71/hour for over 21’s; SSP and statutory rates also rise.
• Whistleblowing Protections
• Reports of sexual harassment are now protected under whistleblowing regulations.

Other Developments: October 2026 Onwards

• Fire-and-Rehire Restrictions
• Dismissals for refusing restricted contractual changes (like pay, hours, pensions) will be automatically unfair unless an employer can justify them.
• Third-Party Harassment Protections
• New duty to take "all reasonable steps" to prevent third-party sexual harassment to be introduced.
• Tribunal Time Limits Extended
• Time limits to bring tribunal claims extended from three to six months.
• Further Industrial Action Changes
• Collective redundancy threshold to be changed, additional reforms around right to a statement of trade union rights, facilities for, and time off for, trade union representatives and protected status for participants.

• Ban on NDAs in Harassment/Discrimination Cases
  NDAs that prevent disclosure of harassment or discrimination will be unenforceable unless requested by the victim—with carve-outs for medical/legal disclosures.
• Zero‑Hours & Predictable Work
  New rights for those regularly working set hours mean that they must be offered guaranteed hours (including agency workers) —and compensation for short‑notice shift cancellations.
• Tipping
  Employers must pass on 100% of tips.

Employer Action Plan

With Employment Laws changing, it is imperative that businesses are prepared and aware of the changes. Here are some actions that employers can take to prepare for the Employment Law changes in 2026.

1. Update Policies & Contracts
   Revise SSP waiting days, parental leave, redundancy, zero‑hours, tipping, whistleblowing, flexible working, harassment, and NDA agreements.
2. Train Leadership & HR Teams
   Ensure clarity on probation, dismissal procedures, harassment prevention, union-process rules, flexible working, trade union protections, fire-and-rehire policies, and predictable scheduling.
3. Audit HR & Operational Practices
   Track redundancies across multiple sites, review zero‑hours shift patterns, and ready your team for Fair Work Agency audits.
4. Proactively Manage Disputes
   Leverage ACAS’s expanded 12-week conciliation window. Encourage early settlement—documenting all correspondence and dispute-handling steps.
5. Monitor Legislative Rollout
   Stay informed of phased implementation via ACAS, GOV.UK, and legal alerts. Adjust HR manuals and communication timelines as updates emerge.

 

Final Thoughts

The Employment Rights Act rollout represents the most comprehensive employment law update in generations. Employers in 2026 must become agile—updating policies, thoroughly training staff, engaging in proactive dispute resolution, and readying themselves for intensified scrutiny by ACAS and the Fair Work Agency. Early planning is key: a robust HR and legal framework can help ensure compliance, foster a positive workplace culture, and reduce risk during this period of transformation.

 

We’re Here to Help at Banner Jones

At Banner Jones Solicitors, we combine decades of experience with practical, business-focused solutions. Our Employment Law experts in Sheffield, Chesterfield and Mansfield provide tailored advice to help you stay compliant, protect your reputation, and avoid costly Employment Law claims. Whether you need policies reviewing, training, or immediate legal support, we’re here to help.

Contact our Employment Law specialists at employment@bannerjones.co.uk