Latest Employment Law Update:
February 2026
Employment Rights Act 2025 - Revised Implementation Timetable
The Government has published a revised implementation timetable for the Employment Rights Act 2025, replacing the previous July 2025 roadmap. The updated timeline provides greater clarity on when some of the Act’s most significant reforms will take effect. The full timetable is available in the Government’s published roadmap.
Key changes include:
Statutory leave and pay changes – April 2026
From 6 April 2026, a day one right will apply to Paternity Leave and Unpaid Parental Leave. New provisions will also allow bereaved fathers or partners to take up to 52 weeks’ paternity leave where the mother or primary adopter dies within the child’s first year. In addition, the lower earnings limit and waiting period for Statutory Sick Pay will be removed.
Fair Work Agency – April 2026
A new Fair Work Agency, with enhanced government enforcement powers, will be established from 7 April 2026. The Agency is expected to adopt a more proactive approach to compliance and enforcement.
Electronic and workplace balloting – no earlier than August 2026
Trade unions will be permitted to conduct electronic and workplace ballots, which may increase participation rates in industrial action ballots.
Unfair dismissal and harassment rights – 2027
From January 2027, the qualifying period for unfair dismissal claims will be reduced from two years to six months. The current statutory cap on compensatory awards for unfair dismissal will also be removed.
Reforms to dismissal and re-engagement practices (commonly referred to as “fire and rehire”) have been deferred and are now expected to take effect in 2027.
A new duty preventing third-party harassment of employees will also be introduced.
What employers should do now
Strengthen recruitment and probation processes
With unfair dismissal protection reducing to six months:
- Improve recruitment decision-making
- Ensure that probation periods are actively managed
- Train managers to document performance concerns early
- Hold structured probation review meetings
Review dismissal and performance management practices
To reduce risks of costly unfair dismissal claims:
- Audit disciplinary and capability procedures
- Ensure managers understand fair process requirements
- Improve documentation standards
- Provide refresher training for line managers
Audit compliance
Ahead of the Fair Work Agency launch in April 2026:
- Review wage compliance and holiday pay calculations
- Check statutory entitlements are applied consistently
- Ensure policies are up to date
- Strengthen internal audit processes
Prepare for industrial relations activity
Unionised employers should:
- Review industrial action contingency plans
- Strengthen employee engagement strategies
- Train managers on lawful responses to industrial action
Reconsider contractual change strategies
With fire-and-rehire reforms coming and greater legal requirements:
- Prioritise consultation and negotiation
- Review contractual flexibility clauses
- Assess risk before embarking on restructuring exercises
Increased employee protections make it important to get recruitment, probation, pay compliance and people management right early. Employers who review policies, strengthen documentation and invest in manager training will be better placed to adapt and manage legal risk.
If you have documentation support as part of your membership please contact our HR and Employment team for assistance with these. Further details on our HR and Employment product are here - HR and EA product | MDDUS.
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