Employment law changes from April 2026: what employers need to know

For employers, this is not simply legislative background noise. It alters dismissal risk, sickness absence cost exposure, redundancy liability and workforce planning. Businesses that prepare early will manage compliance and financial risk more effectively. Those who delay may find themselves exposed to avoidable tribunal claims.

Our employment solicitors are advising employers across a range of sectors on what is coming from April 2026 and how to prepare for the next phase of reform.

April 2026 employment law changes

From 6 April 2026, several substantive reforms take effect. The Government has published an implementation timetable on GOV.UK, but the practical impact on employers goes beyond headline summaries and requires careful legal analysis.

Day-one rights to paternity and parental leave

Employees will gain entitlement to:

• Paternity leave from the first day of employment.
• Unpaid parental leave from day one.

Contracts, policies and payroll systems must be updated accordingly.

Employers with high staff turnover or project-based workforces may feel the operational impact more immediately.

Statutory Sick Pay reform

Statutory Sick Pay will now:

• Be payable from the first day of sickness absence.
• Apply with no lower earnings limit.

The removal of waiting days and the extension of eligibility will increase cost exposure, particularly in businesses with part-time or lower-paid staff.

ACAS has published updated guidance on Statutory Sick Pay, but employers should also consider whether enhanced contractual sick pay schemes require review and whether absence management triggers remain proportionate.

This is not simply an administrative change. It may materially affect payroll forecasting and strategy for dealing with absence.

Stronger whistleblowing protection

Workers who “blow the whistle” on sexual harassment will, from 6 April 2026, benefit from protection against adverse treatment and unfair dismissal.

Employers should review:

• Internal reporting channels.
• Investigation procedures.
• Documentation standards.
• Management training.

Tribunals scrutinise whistleblowing claims closely. Expanded protection increases exposure where reporting systems are unclear or inconsistently applied.

Increased collective redundancy penalties

The maximum protective award for failing to comply with collective consultation obligations will increase from 90 to 180 days’ pay per affected employee.

For employers undertaking restructures and redundancy exercises, this materially increases financial risk. Any business proposing 20 or more redundancies within a 90-day period should take early legal advice. The cost of getting it wrong has effectively doubled.

Trade union recognition reforms

The statutory recognition process is being simplified, making it easier for unions to secure formal recognition. This will give trade unions greater freedom to organise, represent and negotiate on behalf of workers.

Employers should assess workforce sentiment and ensure leadership teams understand how recognition requests are handled under the revised regime.

Even organisations without an existing union presence should understand the evolving legal framework.

Key employment law changes in October 2026

Further significant reforms are scheduled for October 2026, extending employer exposure and increasing access to tribunal claims.

Employment tribunal time limits

The current time limit for making a claim to an employment tribunal for most claims is three months. In October 2026, however, the time limit will increase to six months. This longer time frame may result in an increase in the overall number of claims submitted.

Harassment

Employers will become liable for harassment by third parties, such as customers, unless they have taken “all reasonable steps” to prevent it. A restaurant or pub owner could therefore be liable for harassment of staff by customers.

This will place a significant onus on employers to consider the policies and training that should be in place in this regard.

Key employment law changes in 2027

Further structural reforms are expected in 2027, significantly expanding employee protections and reshaping early-employment risk for businesses.

Unfair dismissal

From 1 January 2027, the qualifying period for unfair dismissal claims is expected to be reduced from two years to six months. This is a significant change for both employers and employees.

If implemented as anticipated, this will:

• Increase the number of people able to bring tribunal claims.
• Reduce employer flexibility to dismiss during early employment.
• Require stronger probation management.
• Demand more robust processes and documentation standards.

In practical terms, employers will need to carefully weigh the first six months of employment. It may result in quicker decisions about whether an employee is right for a role or the organisation.

Fire and rehire

From 1 January 2027, dismissing employees and then re-engaging them on less favourable terms and conditions (often known as “fire and rehire”) will, in most cases, become an automatic unfair dismissal.

This will potentially make it harder for employers to negotiate changes to terms and conditions because the fallback position of ultimately dismissing and re-engaging employees will no longer be easily available.

Strategic implications for employers

The Employment Rights Act 2025 represents a recalibration of the employer–employee balance.

Forward-thinking employers should now be:

• Auditing employment contracts and staff handbooks.
• Reviewing probationary frameworks and dismissal documentation.
• Updating absence and family leave policies.
• Training managers on whistleblowing and harassment processes.
• Stress-testing redundancy procedures.
• Modelling increased SSP cost exposure.

These reforms affect compliance, workforce planning and financial forecasting. Preparation is no longer optional.

Guidance from our employment solicitors

The April 2026 changes are only the beginning. With further reforms expected in October 2026 and throughout 2027, employers must think beyond short-term compliance and consider long-term workforce risk management.

Matthew Irvine, head of employment at SO Legal, says:

“The Employment Rights Act 2025 represents the most significant shift in UK employment protection since the mid-90s. Employers who underestimate the impact of these reforms risk increased exposure to tribunals. Early preparation is critical. Reviewing documentation, strengthening management processes and seeking legal guidance now will place businesses in a far stronger position as the changes take effect.”

Our team works closely with business owners, HR teams, accountants and professional advisers to provide commercially focused guidance on employment law risk and strategic workforce planning.

Get in touch to speak with our employment solicitors.