Employment Law Changes in 2026 and 2027

Employment Law Changes in 2026 and 2027: A Brief Overview for Employers

Significant employment law reforms are being introduced in stages during 2026 and 2027. Although some details and commencement dates remain subject to regulations and statutory guidance, employers should begin preparing now.

Principal Changes in 2026

The main reforms taking effect or expected during 2026 include:

• Statutory Sick Pay: entitlement from the first qualifying day of sickness, with the lower earnings threshold removed.
• Family leave: paternity leave and unpaid parental leave becoming day-one rights, subject to applicable eligibility and notice requirements.
• Collective redundancy: an increase in the maximum protective award for failure to comply with collective consultation obligations.
• Workplace harassment: stronger duties to prevent sexual harassment, including potential liability for harassment by third parties.
• Fire and rehire: tighter restrictions on dismissing employees who refuse changes to specified contractual terms, with limited exceptions.
• Employment Tribunal claims: longer time limits for bringing many types of claim.
• Trade unions and enforcement: enhanced trade union rights and the establishment of the Fair Work Agency to enforce certain workplace rights.

Principal Changes Expected in 2027

Further major reforms expected during 2027 include:

• Unfair dismissal: a substantial reduction in the qualifying period with proposals to make this a day one right, increasing protection for employees with shorter service.
• Zero-hours and low-hours workers: rights to guaranteed hours based on regular working patterns.
• Shift arrangements: reasonable notice of shifts and compensation for certain short-notice cancellations or changes.
• Flexible working: a requirement for employers to act reasonably when refusing requests.
• Pregnancy and family leave: stronger protection against dismissal during pregnancy and following a return from family leave.
• Bereavement leave: a wider statutory right to bereavement leave.
• Equality reporting: additional obligations for larger employers concerning gender pay disparities and menopause support.
• Umbrella companies: increased regulation and enforcement within the contingent labour market.

Steps Employers Should Take

Employers should:

1. review employment contracts, policies and staff handbooks;
2. audit zero-hours, low-hours, casual and agency arrangements;
3. strengthen sickness, probation, dismissal and redundancy procedures;
4. update anti-harassment measures and provide manager training;
5. improve records relating to pay, hours, shifts and consultation; and
6. monitor regulations and guidance confirming commencement dates and transitional arrangements.

Should you need expert legal advice regarding any of the above or indeed any other employment law matters, please contact Kelly Ngan at kelly.ngan@fieldingsporter.co.uk or telephone 01204 540 900.