People Matter: Spring employment law update

Spring 2026 Reforms

The Employment Rights Act 2025 received Royal Assent on 18 December 2025, marking the most substantial overhaul of UK employment law in decades. This legislation stems from the Labour government's Plan to Make Work Pay, aiming to strengthen worker rights after years of perceived erosion under previous administrations.

Implementation is phased to allow preparation. Changes effective from 18 February 2026 primarily repeal much of the Trade Union Act 2016, easing industrial action by extending ballot validity to 12 months, shortening notice periods to 10 days, and removing high turnout thresholds for public sector strikes. These shifts empower unions following recent industrial unrest in sectors like rail and health.

The spring focus sharpens in April 2026. Statutory Sick Pay becomes payable from day one, eliminating the three-day waiting period, and the lower earnings limit vanishes, extending coverage to low-paid workers. Day-one rights emerge for paternity leave and unpaid parental leave, removing qualifying service periods. Collective redundancy protective awards double to 180 days' pay for consultation failures. Whistleblowing protections expand to cover sexual harassment disclosures explicitly.

These alterations carry tangible costs. Removing SSP barriers increases payroll expenses for short absences, particularly in high-turnover industries like retail and hospitality. Day-one family rights raise risks of early departures in probationary periods. Employers already express anxiety over labour cost inflation, with surveys showing heightened fears in retail. Some reforms, like fire-and-rehire restrictions, have slipped to 2027, offering limited breathing room.

Non-obvious tensions include balancing worker protections against potential job creation slowdowns or cautious hiring. Critics argue the changes could burden small businesses disproportionately, while supporters highlight reduced tribunal claims through better baseline rights. Later 2026 and 2027 bring further shifts, including third-party harassment liability and unfair dismissal qualifying period cuts to six months, but spring 2026 marks the first major compliance wave.