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Employment Rights Act - summary. August 2026

The table below provides a summary of the changes that will become law from April 2026 and a reminder of changes that are due later in the year.


Please note that as more detail is available this table will be updated. 

 

For a full list of changes that have been implemented up to 31 July 2026 refer to: Make Work Pay timeline.

Area of Law/

the Bill

Date of change, or proposed date of change

Summary of the change

Policy or document that is likely to need amending and updating.

 

Areas for the employer to consider

Trade Union reforms

25 August 2026

Electronic and hybrid voting will become available for industrial action ballots, political fund/resolution ballots, union elections, and union merger ballots. Workplace voting will also be available for industrial action ballots by 31 August 2026 

 

No change to current legal framework – this provides different voting methods

Employment Tribunal time limits

 

1 October 2026.

 

Time limits for making a claim to an employment tribunal are expected to increase to 6 months for all claims. The current time limit for most claims is 3 months.

n/a

Employers to be aware and ensure that records and documents are retained for longer periods of time.

Harassment

30 October 2026

The Bill will increase employers’ duties in this area in two ways by:

  • Requiring employers to take all reasonable steps to prevent sexual harassment.

  • Employers will be liable for acts of harassment committed by third parties unless the employer took all reasonable steps to prevent such acts. This liability will cover all forms of harassment: age, disability, race, sexual orientation, religion or belief, sex and gender re-assignment and sexual harassment (including conduct of a sexual nature and less favourable treatment for submitting to or rejecting unwanted conduct of a sexual nature).

Policies that cover how the employer addresses Harassment (and Bullying) issues.

 

This could be specific policies or the Grievance policy.

 

Training materials

Ensure the Anti-Harassment policy covers  harassment by third parties.

 

Be clear that harassment of any kind will not be tolerated.

 

Ensure that managers are trained on how to handle complaints.

 

Ensure that all employees can recognise harassment and know where to report issues to.

 

Keep training records to show you took ‘all reasonable steps.’

Trade Union reforms

30 October 2026

  • the duty to inform workers of their right to join a trade union

  • strengthening trade unions’ right of access

  • implementing reforms to access and unfair practices during the recognition and derecognition process, and all remaining trade union recognition measures, including freezing the bargaining unit when an application is received

  • new rights and protections for trade union representatives

  • extending protections against detriments for taking industrial action

Main statement of terms and conditions of employment needs

the required statement that “you have

a right to join a trade union”.

 

Employers need to be aware these reforms impact all businesses with 20+ employees.  There does not need to be a recognition agreement in place.

 

Employers need to be aware of the new protections for trade union representatives and the protections against detrimental treatment for those involved in taking industrial action.

Day-one right to unfair dismissal claims

 

1 January 2027

Employees will gain the right to claim unfair dismissal if they have six months service.  

 

(Discrimination claims can be made from day one of employment – this won’t change).

Contract of employment

 

Probation policy and arrangements

 

Disciplinary, capability and sickness absence management procedures e.g. if the policy states that a shortened procedure could be applied during probation.

‘Short service’ dismissals, in the first 24 months of employment won’t be possible.

 

Managers will need training in managing the first few months of employment effectively.

 

Training to ensure there is more emphasis on recruitment and induction, probation reviews, dismissal procedures. 

 

Uncapped compensatory awards

1 January 2027

Uncapped compensation for ordinary unfair dismissal becomes law. Tribunals will award full financial loss without statutory ceilings.

n/a

When calculating potential Tribunal costs this is no longer capped and can include future earnings and pension benefits.  This is likely to will impact higher earners.  

‘Fire and Rehire’ changes

 

(Some Other Substantial Reason dismissals)

January 2027

Very, very limited situations where the employer can dismiss the employee who won’t accept proposed contractual changes and then offer to re-engage them on different terms.

 

The only circumstance where this will be permitted is the employer can demonstrate financial difficulties.

 

Dismissals for refusing contractual changes to pay, pension, hours and holiday will be automatically unfair.

 

Employers will be able to change some minor terms of employment.

Contract of employment variation clauses

Ensure that contracts of employment have robust variation clauses.  (Although this would not give the right to make unilateral changes).

 

Plan for the change by reviewing current staffing arrangements – do changes need to be made ahead of the new legislation?

 

If an employer is planning to make changes to pay, hours of work or other benefits, consultation should start as soon as possible.

 

 

Zero-hours contracts and guaranteed hours

 

Exp. in early 2027 (TBC)

After 12 weeks’ continuous work, employers must offer a guaranteed hours contract, based on hours worked.  This is after every period of 12 weeks work.  

 

Zero-hours contracts can still exist, but one-sided flexibility will be curbed. 

 

Workers will also gain rights to reasonable notice of shifts

 

Workers will be entitled to compensation for cancelled or curtailed shifts.

Contracts of  employment for casual/zero hours/sessional or Bank staff.

 

 

Consider how the legislation can be administered:

 

–      How will the employer ensure they offer a contract after 12 weeks’ work.?

–      How will the employer plan shifts to ensure that any compensation for changed shifts is limited?

 

Consider staff planning and the use of zero hours contracts.

 

 

Increased pregnancy and maternity rights

Expected in 2027.

Becomes unlawful to dismiss a woman, while pregnant, on maternity leave and within six months of returning to work (with some exceptions).

Family leave policies

Consider training programmes, ensuring managers know dismissal protocols in relation to protected periods.

Flexible Working Requests

Expected in 2027.

An employer will not be able to refuse a flexible working request unless they:

  • state the reasons

  • explain why they believe their refusal is reasonable

 

Any refusal must not just fit into one of the prescribed business reasons but also be reasonable in the circumstances.

Flexible Working Policy

 

Training Materials

A more detailed explanation will have to be provided to the employee and managers may require training to deliver these messages.

 

Look at creative ways to accommodate the request, or ways to agree a compromise with the employee.

 

Start to provide more detailed reasons for refusing a request so that this practice becomes embedded.


 
 
 

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