Following the Employment Rights Act 2025, a number of significant employment law changes are being phased in between now and 2027.
These changes will affect how small and medium-sized businesses hire, manage and exit employees as well as impacting overall people costs, contracts and day-to-day HR processes.
While the changes are being introduced gradually, employers should begin preparing now to ensure they remain compliant and avoid unnecessary risk.
Below is a brief overview of some of the key areas to be aware of and what will be changing:
| When | New Provision | What's Changing |
|---|---|---|
|
Apr 2026 |
From 1 April 2026, the national minimum hourly pay rates will increase to:
|
Previously (from 1 April 2025), these rates were:
|
|
Apr 2026 |
Statutory sick pay (SSP) to be paid to all workers from first day of absence at a rate of either 80% of weekly earnings or the flat rate, whichever is lower. |
Previously, SSP was only payable after a waiting period and only to employees earning above the lower earnings limit. |
|
Ongoing from Apr 2026 |
Many family-related rights are being strengthened and made available from day one of employment, including entitlement to paternity leave, parental leave and bereavement leave. |
Most of these rights have traditionally required a qualifying length of service. |
|
Oct 2026 |
The new legislation calls for a stronger, proactive duty for employers to take all reasonable steps to prevent harassment and is introducing employer liability for third-party harassment. |
Employers have long been expected to address harassment but they have not generally been automatically liable if an employee is harassed by a third party such as a customer, client or contractor. |
|
Jan 2027 |
Under the new reforms, employees will qualify for unfair dismissal protection from six months of employment. |
Currently, employees need two years’ service to gain protection from unfair dismissal. |
|
2027 |
New measures aim to give those on zero-hours contracts the right to a guaranteed-hours contract to reflect regular hours worked over a defined period. |
Historically, workers on zero-hours or highly variable contracts have had limited certainty around hours and income. |
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Understand the full timeline and when each new provision is being introduced.
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Review and update your policies, contracts and employee handbooks to ensure they reflect the new legislation.
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Consider and plan for the impact of these changes including staff training, increased people costs, probation changes and careful workforce planning.
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Communicate these new rights clearly to your employees.
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