The Employment Rights Act 2025 is now in force and will bring significant changes for UK employers across 2026 and into 2027. To help you get ahead of these reforms, Bhayani Law has identified ten essential actions employers should consider adding to their 2026 HR compliance checklist.
1. Update Statutory Sick Pay (SSP) Policies
From April 2026, SSP will become a day-one entitlement and more employees will qualify, including those on lower earnings. Employers should work with payroll and HR teams to estimate additional costs, update SSP processes, and revise attendance and sickness absence policies accordingly.
2. Review Family Leave and Flexible Working
Statutory paternity leave and unpaid parental leave are expected to become day-one rights. Flexible working changes will also take effect. Ensure your family leave and flexible working policies are updated, and provide guidance to managers on correctly applying the new rules.
3. Plan for Unfair Dismissal Reform
From 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years to six months and the statutory cap on compensation is expected to be removed. Now is the time to revisit recruitment, probation processes, and documentation to mitigate future risk.
4. Prepare for Trade Union and Industrial Action Changes
Various reforms will affect how employers interact with trade unions, including simplified recognition processes and strengthened rights for union representatives. Training managers and HR on effective engagement and conflict management is crucial.
5. Strengthen Redundancy Consultation Compliance
From April 2026, the protective award for non-compliance with collective redundancy consultation requirements is expected to double. Review your redundancy procedures and ensure robust systems are in place to meet statutory obligations.
6. Restrict “Fire and Rehire” Practices
Significant limits on using “fire and rehire” to implement contractual changes are expected later in 2026. Employers should review contract flexibility clauses and change management strategies to ensure compliance.
7. Enhance Harassment Prevention and Policies
Harassment protections will be strengthened in stages throughout 2026. Now is the time to update your harassment policies, conduct training, and review how complaints are handled to ensure compliance with the new framework.
8. Prepare for the Fair Work Agency
The introduction of the Fair Work Agency (FWA) in 2026 will increase scrutiny of compliance in key employment areas such as minimum wage, sick pay, and holiday rights. Employers should tighten record-keeping and proactively review relevant policies and practices.
9. Review Zero-Hours and Variable Hours Contracts
Upcoming reforms related to zero-hours and similar flexible contracts (including guaranteed hours and notice requirements for shift changes) will affect how employers manage variable workforces. Map out roles using these contracts now and plan necessary adjustments.
10. Consider Equality Action Planning
If your organisation will have 250+ employees by 2027, you will need to develop and publish an equality action plan covering issues such as gender pay and menopause support. Even smaller employers may benefit from considering these strategic actions as good practice.
To be clear, the actions outlined above do not cover every reform introduced under the Employment Rights Act, and the timing of some steps will depend on when the final details of the legislation is confirmed and when specific provisions take effect.
What is certain is the scale of change ahead. With wide-ranging reforms expected, including those affecting trade unions and industrial action, “fire and rehire” practices, and collective redundancies, it will be increasingly important for employers to listen to their workforce, involve employees in discussions, and respond proactively to concerns.
One practical step to consider is undertaking a workplace survey to better understand the issues affecting your employees. This may highlight challenges such as working conditions, pay concerns, or low morale, allowing you to take informed and targeted action. Investing time now in reviewing employee relations and improving engagement, including, where appropriate, exploring the use of works councils or other consultation mechanisms, can deliver significant long-term benefits for your organisation.
Planning should begin now. Our Employment Rights Act 2025 Planner and Audit and Impact Assessment is designed to help employers assess their current position, identify gaps, and prioritise actions ahead of the reforms coming into force. Combined with our practical guidance and tailored HR and legal support, we can help you navigate the changes with confidence and ensure your organisation is fully prepared for what lies ahead. Contact our expert team today on 0333 888 1360 or email [email protected].
