Important Changes to Employment Law in 2026 and 2027: What Employers and Employees Need to Know

Key Employment Law Changes Coming in 2026

1. Day-One Rights for Family Leave

From 2026, employees will benefit from enhanced family-related rights from the first day of employment. These changes include:

• Immediate eligibility for paternity leave
• Immediate eligibility for unpaid parental leave
• Greater support for working families

Previously, employees often needed a qualifying period of service before accessing these rights.

2. Statutory Sick Pay Reforms

The Government plans to expand access to Statutory Sick Pay (SSP), making it available to more workers.

Key changes include:

• SSP entitlement from the first day of sickness in qualifying cases
• Removal of certain lower earnings restrictions
• Improved financial protection for low-paid workers

This reform is intended to ensure workers are not forced to choose between their health and income.

3. Stronger Protection Against Workplace Harassment

Employers will face increased responsibilities to prevent workplace harassment.

Expected requirements include:

• Taking proactive steps to prevent harassment
• Implementing effective workplace policies
• Providing staff training
• Responding promptly to complaints

Failure to comply may expose employers to increased legal liability.

4. Restrictions on Fire and Rehire Practices

The controversial practice of dismissing employees and rehiring them on less favourable terms will become more heavily regulated.

Employers may need to demonstrate:

• Genuine business necessity
• Meaningful consultation with staff
• Exploration of alternative options before dismissal

5. Creation of the Fair Work Agency

A new Fair Work Agency will be established to strengthen enforcement of employment rights.

The agency is expected to oversee:

• National Minimum Wage compliance
• Holiday pay enforcement
• Sick pay rights
• Other workplace protections

This could result in increased investigations and penalties for non-compliant employers.

6. Longer Employment Tribunal Time Limits

The time limit for bringing many employment tribunal claims is expected to increase from three months to six months.

This change provides employees with additional time to:

• Seek legal advice
• Gather evidence
• Pursue workplace claims

Employers may therefore face a longer period of potential legal exposure.

Major Employment Law Changes Expected in 2027

1. Reduced Qualifying Period for Unfair Dismissal Claims

One of the most significant employment law changes is the reduction of the qualifying period for unfair dismissal protection.

Currently, most employees must complete two years of service before claiming unfair dismissal. Under the proposed reforms:

• Employees may gain protection after only six months of service
• Employers will need more robust probation procedures
• Dismissal decisions will face greater scrutiny

This change is likely to have a substantial impact on recruitment and performance management practices.

2. New Rights for Zero-Hours Contract Workers

Workers on zero-hours and low-hours contracts are expected to receive stronger protections.

Potential rights include:

• Guaranteed hours based on regular working patterns
• Compensation for cancelled shifts
• Greater predictability of working schedules

These reforms aim to improve job security for vulnerable workers.

3. Expanded Bereavement Leave Rights

The Government intends to introduce broader statutory bereavement leave rights.

This would provide employees with:

• Time off following the death of a loved one
• Enhanced workplace support during difficult circumstances
• Greater consistency across workplaces

4. Further Flexible Working Reforms

Flexible working is expected to become even more accessible.

Employers may be required to:

• Consider requests more carefully
• Provide stronger justification for refusals
• Encourage flexible workplace arrangements where possible

This reflects the growing demand for work-life balance and hybrid working options.

How Employers Should Prepare

To remain compliant with the upcoming employment law changes, employers should:

Review Employment Contracts

Ensure contracts reflect new statutory rights and obligations.

Update Workplace Policies

Review policies covering:

• Family leave
• Sick pay
• Harassment
• Flexible working
• Disciplinary procedures

Train Managers

Managers should understand the new legal requirements and how to apply them fairly and consistently.

Strengthen Probation Processes

With unfair dismissal rights potentially arising after six months, employers should implement effective probation reviews and performance management procedures.

Seek Legal Advice

Professional legal guidance can help businesses prepare for legislative changes and reduce the risk of employment disputes.

What These Changes Mean for Employees

Employees are likely to benefit from:

• Greater job security
• Enhanced family leave rights
• Improved sick pay protections
• Stronger safeguards against unfair treatment
• Better work-life balance opportunities

The reforms are designed to create fairer workplaces while encouraging responsible employment practices.

Conclusion

The employment law changes arriving in 2026 and 2027 represent some of the most significant workplace reforms in recent years. Employers should begin reviewing their policies, procedures, and contracts now to ensure compliance, while employees should familiarise themselves with their expanding rights.

As these reforms are implemented, staying informed will be essential for navigating the evolving UK employment law landscape successfully.