The Employment Law Changes Coming in 2026 and 2027

Your Rights at Work:

The Employment Law Changes Coming in 2026 and 2027

Published April 2026  |  Free Employment Law

A wave of new employment law changes is underway in the UK. The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is the most significant overhaul of workers' rights in a generation. Some of these changes have already come into force. Others are on their way in 2027.

What Is the Employment Rights Act 2025?

The Employment Rights Act 2025 is the legal framework introduced by the Labour Government as part of its 'Plan to Make Work Pay'. It builds on existing employment law and introduces a range of new rights for workers across the UK.

The changes are being rolled out in stages rather than all at once. Some came in on 6 April 2026. Others are expected to follow in January 2027 and throughout 2027. This staged approach gives employers time to adapt, but it also means employees need to keep track of what applies to them right now and what is coming.

Timeline of Changes at a Glance

The table below sets out the key changes, when they take effect, and who they affect.

Changes Already in Force: April 2026

National Minimum Wage Increase

From 1 April 2026, the National Minimum Wage increased. The rates are now:

•         £12.21 per hour for workers aged 21 and over

•         £10.00 per hour for workers aged 18 to 20

•         £7.55 per hour for workers aged 16 to 17 and apprentices

Statutory Sick Pay From Day One

This is one of the most practical changes for employees. Before April 2026, if you were off sick, you had to wait three days before Statutory Sick Pay (SSP) kicked in. Those three waiting days have now gone.

From 6 April 2026, SSP is payable from the first day you are off sick. The weekly rate is now £123.25. Crucially, the lower earnings limit barrier has also been removed, which means lower-paid workers who were previously locked out of SSP are now entitled to it.

Day-One Rights for Paternity Leave and Parental Leave

Previously, to take paternity leave you needed 26 weeks of service with your employer. From 6 April 2026, paternity leave is a day-one right. You do not need to have worked for your employer for any minimum period before you can take it.

The same applies to unpaid parental leave. Previously this required one year of service. That requirement has been removed.

A new right has also been introduced for bereaved partners. If a mother or primary adopter dies, the surviving partner can take up to 52 weeks of unpaid leave. This right is contained in the Bereaved Partners Paternity Leave Regulations 2026.

Stronger Whistleblowing Protection for Sexual Harassment

From 6 April 2026, sexual harassment is now classed as a 'qualifying disclosure' under whistleblowing law. This means that if you report sexual harassment at work, you have legal protection against being treated badly or dismissed as a result.

This is a significant step forward. Previously, whistleblowing protection focused primarily on matters like fraud, health and safety, or legal breaches. Adding sexual harassment to the list means workers who speak out about it have a clear legal route to protection.

Collective Redundancy: Bigger Penalty for Employers Who Fail to Consult

If your employer makes 20 or more people redundant without following the correct collective consultation process, you may be entitled to a 'protective award'. From 6 April 2026, the maximum protective award has doubled from 90 days' pay to 180 days' pay.

This is a significant increase. If your employer did not consult properly before making redundancies, the Employment Tribunal can order them to pay you up to 180 days' gross pay on top of any other compensation you may be awarded.

The Fair Work Agency

From 7 April 2026, a new government body called the Fair Work Agency began operating. It has taken over enforcement powers in areas including the National Minimum Wage, holiday pay, and other statutory worker rights.

This matters because it means there is now a single, dedicated body to investigate complaints from workers. Previously, enforcement was spread across different government departments. The Fair Work Agency brings this together in one place.

What Is Coming in 2027

The Biggest Change: Unfair Dismissal After Six Months

This is the change that will affect the most people. Currently, you need to have worked for your employer for two years before you can bring an unfair dismissal claim at the Employment Tribunal. From 1 January 2027, that qualifying period will be cut to six months.

For many workers, this is transformative. Two years is a long time, and it has historically left new employees very vulnerable. Employers have been able to dismiss workers in their first two years without giving any reason, and without any legal consequences.

Under the new rules, an employee only needs six months of service before they can challenge a dismissal as unfair.

Fire and Rehire Will Become Automatically Unfair

'Fire and rehire' describes the practice where an employer dismisses a worker and then offers to re-engage them on worse terms and conditions. It has been used by some employers as a way of forcing through pay cuts or changes to working patterns.

From 1 January 2027, dismissing someone and rehiring them on worse terms will be automatically unfair dismissal in most cases. This means you will not need to prove your employer acted unreasonably. The dismissal will be automatically wrongful in law.

Zero-Hours Contracts: New Rights for Variable-Hours Workers

The government has stopped short of banning zero-hours contracts outright. Instead, from 2027, workers on zero-hours or low-hours contracts will gain a package of new rights:

•         The right to be offered guaranteed hours, based on the hours they have actually been working.

•         The right to reasonable notice before their shift starts.

•         The right to compensation if a shift is cancelled, moved, or cut short by the employer at short notice.

•         Protection from being dismissed or treated badly for exercising these rights.

Stronger Protections for Pregnant Workers and New Mothers

The Employment Rights Act 2025 will also strengthen protections against dismissal for workers who are pregnant and those who have recently returned from maternity leave. The exact details of how these protections will work in practice will be set out in regulations due in 2027.

What the law is moving towards is an extended period of protection during and after pregnancy, making it harder for employers to make pregnant workers redundant or treat them less favourably.

Five Practical Steps You Can Take Right Now

Employment law only protects you if you know your rights and act on them. Here is what we recommend doing now:

•         1. Check your payslips. Make sure your hourly rate reflects the new National Minimum Wage. If it does not, raise this with your employer in writing and keep a copy.

•         2. Know your sick pay entitlement. If you are off sick, SSP is now payable from day one. Do not accept a three-day wait without challenging it.

•         3. Keep records. Whether it is your hours worked, absences, or anything your employer says to you about your performance or conduct, write it down with dates. These records can be essential if you need to bring a claim.

•         4. Do not sign new contracts under pressure. If your employer is asking you to agree to worse terms, get independent legal advice before you sign anything.

•         5. Act quickly. Employment Tribunal time limits are strict. In most cases, you have three months minus one day from the date of the act you are complaining about. After that, your claim will usually be out of time. Do not delay in getting advice.

Frequently Asked Questions

Do these changes apply in Scotland, Wales, and Northern Ireland?

Employment law in Great Britain (England, Scotland, and Wales) is largely governed by the same legislation, including the Employment Rights Act 2025. Northern Ireland has its own devolved employment law, so some of these changes may differ there. If you are based in Northern Ireland, it is worth checking the specific position that applies to you.

I have worked for my employer for less than two years. Can I claim unfair dismissal yet?

Not yet. The change reducing the qualifying period from two years to six months does not take effect until 1 January 2027. Until then, the two-year rule still applies. However, there are some situations where you can claim unfair dismissal without any minimum service period at all, for example if you are dismissed because of pregnancy, whistleblowing, or for asserting a statutory right. If you have been dismissed recently, it is worth getting advice to understand whether any of these exceptions apply to you.

My employer has been taking three days off my sick pay. Can I get the money back?

The change to SSP only applies from 6 April 2026 onwards. If your employer was correctly applying the three-day waiting period before that date, they were following the law at the time. However, if they have continued to apply the waiting period after 6 April 2026, they may owe you the difference. Raise it with them in writing.

What happens if I am on a zero-hours contract and my employer refuses to give me a guaranteed hours offer in 2027?

Once the zero-hours provisions are in force, your employer will be legally required to offer you a contract that reflects your regular working hours if you want one. If they refuse, or if they try to dismiss or punish you for asking, you will have legal rights to challenge this. The details of exactly how these rights work in practice will become clearer when the government publishes the regulations later in 2026 and into 2027.