Employment Law Changes Coming in 2026–2027: What you need to Know

What’s Already Changed: 

 

 

If you previously relied on these minimum levels to maintain operations during industrial action, now is the time to review your contingency planning. 

 

 

 

1. Increased dismissal protection for employees involved in industrial action 

Employees participating in industrial action will have stronger legal protections. Expect a higher bar for employers considering disciplinary action or dismissal. 

 

2. Changes relating to trade union activity 

More rules are introduced to safeguard workers engaging in union activities. Employers should reinforce manager training on lawful handling of union matters. 

 

 

1. Statutory Sick Pay (SSP) reforms 

SSP becomes payable from day 1 (no more three waiting days). 

Removal of the lower earnings limit — all employees become eligible. 

Those earning under the current threshold will receive 80% of weekly earnings. 

 

What this means for you: 

Review your absence tracking processes and ensure payroll systems are updated. Contractual sick pay schemes may also need revisiting, especially for new starters. 

 

2. Paternity & Parental Leave 

Eligibility from day one of employment. 

Make sure policies and onboarding documents reflect this. 

Note: this is for leave element only, the Statutory Paternity Pay still requires service, and notice requirements are not changing. 

 

There will be some transitional changes to consider for those that are either newly eligible, for those with an EWC between 5 April and 25 July 2026, and for those already eligible - speak to us for clarity on how this may impact your employees individual circumstances. 

 

3. Introduction of Bereaved partners paternity leave (A new law, with a day one right). 

 

4. Whistleblowing protections expand to include sexual harassment 

Sexual harassment becomes a seventh protected disclosure area. 

Employees will be protected from detriment or dismissal when reporting it. 

 

Action for employers: 

Update your whistleblowing and harassment policies and clearly communicate the changes to your team/staff members. 

 

5. Gender Pay Gap & Menopause Action Plans (Voluntary from 2026, mandatory in 2027) 

 

From 2027 large employers may be expected to publish menopause and gender pay action plans — but SMEs are strongly encouraged to act early. 

Being proactive here supports wellbeing and reduces the risk of discrimination claims. 

 

6. Additional Trade Union Changes & Creation of the Fair Work Agency 

More detail on both is expected, but employers should anticipate greater regulatory scrutiny around worker treatment and fairness. 

 

7. National Living Wage Increase 

The National Living Wage is due to increase with effect from 1 April 2026 to £12.71 per hour (from £12.21). This is applicable to all workers over the age of 21.  

It is therefore a good time to ensure all your staff are in line, or above this threshold. 

 

Have you also considered accreditation to the 'Real Living Wage'?  

The new rate for the RLW is £13.45 per hour. Gaining this accreditation can really support employee retention and attract new prospective employees. 

 

 

1. Third-Party Harassment 

Employers will now be liable for harassment committed by customers, suppliers or visitors unless they can show all reasonable steps were taken to prevent it. 

 

Policies, Risk Assessments and staff training are essential. 

 

2. Preventative Duty for Sexual Harassment 

Employers will be required to take all reasonable steps (a higher legal standard than “reasonable steps”) to prevent sexual harassment in the workplace. 

 

This may involve: 

Updated policies 

Mandatory training 

Risk assessments 

 

3. Employment Tribunal Time Limits 

The time limit for bringing most tribunal claims increases from 3 months to 6 months (plus Acas Early Conciliation extensions). 

 

4. Tipping Policy 

The obligation to create a tipping policy is expanded to state that employee/ TU representatives (or employees if no reps are in place) should be consulted on review of the policy and that the policy must be reviewed every 3 years. 

 

 

Mandatory Seafarers’ Charter — relevant only to maritime businesses or those employing seafarers. 

 

 

1. Fire & Rehire – Major changes 

Fire and rehire will become automatically unfair dismissal in most cases if the employee does not agree to contractual changes. 

This is a significant shift. 

 

Key exception: 

Where variations are essential to prevent serious financial difficulty. 

 

Practical steps: 

Review how you manage contract variations. 

Strengthen consultation processes. 

Ensure business reasons for contractual changes are well-evidenced. 

 

2. Guaranteed Hours for Zero-Hours Workers 

Employers will need to offer guaranteed hours based on actual working patterns over a reference period (likely 12 weeks). 

High impact for sectors that rely on flexible or seasonal labour. 

 

3. Unfair Dismissal Rights from 6 Months 

Employees will gain unfair dismissal rights after six months, not two years. 

 

This is one of the biggest changes coming. 

 

Employers should: 

Strengthen induction and probation processes 

Use clear performance and conduct procedures early 

Keep thorough documentation 

 

4. Enhanced Pregnancy & Maternity Rights 

More detail is expected, but protections will increase. 

 

5. Bereavement Leave Extended 

Employees will be entitled to at least one week of paid bereavement leave for the loss of a close loved one, not just a child. 

 

6. Flexible Working 

Rejections of flexible working requests must be not only based on statutory grounds but also reasonable. 

 

7. Menopause Action Plans (Mandatory for Large Employers) 

 

While mandatory only for larger employers, SMEs can benefit from early adoption of supportive policies. 

 

 

Review and update all HR policies 

Especially: 

 

 

Strengthen manager training 

Most changes increase employer obligations, particularly around behaviour, process, and documentation so ensure your Managers understand these changes and the impacts for employees. 

 

Audit employment contracts 

Ensure they’re compliant and ready for changes in dismissal rights, guaranteed hours, and new protections. 

 

Communicate changes clearly 

 

Employees value transparency — and engagement reduces risk. 

 

At Ashfield HR, we can support you to implement these changes to ensure you are not only compliant, but are able to support your employees and promote best practice. 

 

If you’d like to talk through, get in touch with our team.