Workplace changes are coming – are you ready?

2026 is shaping up to be a big year for employment law. A wide range of reforms are on the horizon, and while some have been discussed for years, others are moving forward more quickly than many employers expect.

If you are responsible for people management, HR, or compliance, understanding what is coming now will help you plan effectively and avoid unnecessary pressure later.

April 2026: the first set of changes

Higher penalties for collective redundancy mistakes

If you’re planning a restructure that affects 20 or more employees in a 90-day period, the collective consultation rules already apply. From April, the maximum protective award is expected to double. That means the cost of getting consultation wrong could be significant.

What this means for you:

• You will need a clear and well-structured project plan for any proposed restructure
• Line managers should understand when collective consultation is triggered
• Accurate records and documentation will be more important than ever

Day-one rights for paternity leave and unpaid parental leave

Paternity leave and unpaid parental leave will no longer require a minimum period of service. Employees will qualify for these rights from their first day of employment.

What this means for you:

• Expect more leave requests early in employment.
• Contracts, policies and onboarding materials will need updating.
• Smaller teams may want to plan additional cover options.

Statutory Sick Pay becomes payable from day one

The government intends to remove both the Lower Earnings Limit and the three waiting days for Statutory Sick Pay. That means SSP will apply from the first day of sickness and to more workers.

What this means for you:

• Short-term absence will become more expensive.
• You may need to update your internal sick pay rules and policies.
• Absence-reporting and monitoring processes should be reviewed.

 Stronger whistleblowing protections

The scope of who is protected and what qualifies as a protected disclosure is expected to widen. This is intended to encourage individuals to raise concerns without fear of retaliation.

What this means for you:

• Update policies and reporting routes.
• Train managers so disclosures are handled consistently.
• Make sure employees feel able to raise concerns early.

A new Fair Work Agency

A centralised enforcement body will be introduced to oversee areas such as pay, working time, holiday entitlement and Statutory Sick Pay.

What this means for you:

• Expect more coordinated enforcement.
• Better HR and payroll record-keeping will be essential.

Simpler trade union recognition and electronic balloting

Union recognition processes are set to become more straightforward. Electronic and workplace ballots will also be permitted.

What this means for you:

• Recognition could become quicker.
• Manager training on lawful communication will be essential.
• Understanding where union interest might arise will help you prepare.

October 2026: the second wave of reforms

Controls on ‘fire and rehire’

The government plans to restrict the use of dismissal and re-engagement as a tool for contractual change.

What this means for you:

• Consultation will need to be more robust.
• You’ll need a clear business rationale for any proposed change.
• Planning and documentation will become more important.

New anti-harassment duties, including third-party harassment

Employers take on a proactive duty to prevent harassment, including harassment by customers, clients or other third parties.

What this means for you:

• You’ll need a harassment risk assessment.
• Training and updated procedures will be essential.
• Clear routes for reporting customer/client issues will be required.

Tipping rules tightened

If you operate in hospitality or leisure, expect more detailed rules on how tips are distributed and recorded.

What this means for you:

• Review any current tronc or tipping arrangements.
• Update payroll processes if needed.
• Provide staff with a clear written policy.

 Duty to inform workers about their right to join a trade union

You will need to inform workers of their legal right to join a union. Unions will also have improved access rights.

What this means for you:

• Update your induction and onboarding materials.
• Provide neutral, accurate information.
• Support managers so they respond appropriately to questions.

Greater protection for union reps and those taking industrial action

Expect enhanced rights for representatives and expanded protection against detriment for anyone taking part in industrial action.

What this means for you:

• Review your approach to performance management and promotions.
• Train managers so decisions don’t unintentionally disadvantage union reps.
• Ensure your policies reflect the new protections.

Possible extensions to tribunal time limits to submit claims

Some types of claims may soon be allowed to be submitted outside the current time limits.  It’s likely the current limitation period of three months will be extended to six months

What this means for you:

• You may need to keep records for longer.
• Factor longer limitation periods into settlement discussions.
• Ensure decisions and investigations are well-documented.

Other 2026 developments to be aware of

• From January 2026, companies with a premium listing on the London Stock Exchange will be subject to strengthened internal control and governance requirements. These are designed to improve accountability, risk management and confidence in financial reporting. They will mainly affect larger listed employers, particularly at board and senior leadership level.
• The Data (Use and Access) Act introduces changes to the UK data-protection framework, phasing in by mid-2026. These reforms affect how organisations handle personal data, automated decision-making and subject access requests, with the aim of modernising data rules while reducing unnecessary complexity. Employers should review privacy notices, HR systems and data-handling processes in advance.
• UK employers with staff in EU countries will need to comply with the EU Pay Transparency Directive once it is implemented by member states in June 2026. This includes requirements to provide pay information to job applicants, greater transparency around pay progression and, for larger employers, gender pay reporting obligations. Even non-EU businesses can be caught if they employ staff within the EU.

 What’s not coming until 2027

Some headline changes will arrive later than many expect. These are likely to include changes to zero-hours contract reform, menopause and gender pay action plans, and future flexible-working updates. They’re on the horizon, but they won’t affect you in 2026.

How your business can prepare now

To stay ahead of the changes, consider:

• Reviewing contracts, policies and handbooks.
• Budgeting for increased statutory pay costs.
• Training managers on sickness, leave, union rights and harassment.
• Strengthening your approach to consultation and employee engagement.

If you’d like help reviewing your documents or creating a tailored compliance plan for 2026, our employment law solicitors can guide you through the changes and help you put everything in place with confidence.