Employment Law Changes in 2026 and 2027: What Employers Need to Prepare For
Updated: 3 days ago
Employment law changes in 2026 and 2027: what employers need to prepare for
Updated 24 September 2026 | The HFactor HR Consultancy
UK employers face a series of employment law changes. Some reforms already apply; others will start in October 2026, January 2027 or later in 2027. The practical challenge is knowing which rules apply today, which dates matter and where policies and manager training need attention.
Already in force: check your policies now
Since 6 April 2026, statutory sick pay has been payable from the first qualifying day of sickness absence and the previous lower earnings limit has been removed. Employers should check payroll rules and absence policies.
Paternity leave and ordinary unpaid parental leave became day-one employment rights in April 2026, while separate eligibility rules continue to apply to statutory pay. Employers should not confuse leave entitlement with pay entitlement.
The maximum protective award for failure to comply with statutory collective redundancy consultation obligations increased to 180 days’ pay. Employers also need to retain records of annual leave and holiday pay for at least six years, and sexual harassment disclosures can qualify for whistleblowing protection.
1 October 2026: Employment Tribunal time limits
The time limit for bringing most Employment Tribunal claims increases from three months to six months for relevant matters arising on or after 1 October 2026. Earlier events may remain subject to the existing time limits; for breach-of-contract claims in Scotland, the later commencement date is 9 November 2026. The Acas early conciliation process remains important.
For employers: preserve records, keep accurate meeting notes and avoid assuming that a dispute has gone away after three months. For employees and advisers: check the correct claim-specific time limit and the date of the event rather than relying on a general headline.
30 October 2026: Preventing harassment
Employers will be required to take all reasonable steps to prevent sexual harassment, and further protection against harassment by third parties such as clients, patients and customers is due to take effect. An employer may face liability unless it has taken the required preventative steps.
Review harassment risk assessments, reporting routes, manager training and responses to complaints involving visitors, service users and contractors. Policies alone are unlikely to be enough without effective implementation.
1 January 2027: Unfair dismissal and contractual change
For dismissals from 1 January 2027, the ordinary unfair dismissal qualifying period will generally reduce from two years to six months, and the statutory cap on the compensatory award will be removed. Existing day-one protections for automatically unfair dismissal and discrimination are separate.
Additional restrictions on dismissal and re-engagement—sometimes called fire and rehire—are also scheduled for January 2027. Employers should review probation management, performance records, consultation and contractual-change processes in advance.
Further reforms expected in 2027
Further measures include changes to flexible working refusals; rights relating to guaranteed hours, shift notice and short-notice cancellations for qualifying zero-hours and low-hours workers; a revised approach to collective redundancy thresholds across an organisation; enhanced pregnancy and maternity dismissal protections; unpaid bereavement leave; and mandatory gender equality and menopause action plans for larger employers.
Some implementation details and dates remain subject to consultation or regulations. Do not treat a measure described as planned as a legal right already in force.
What should your business do next?
Start with a practical audit of contracts, handbook policies, payroll practices and management capability. Prioritise the changes due in October, then review probation and dismissal processes ahead of January 2027. Identify where line managers need training, where evidence must be retained and which arrangements depend on final regulations.
The HFactor provides practical HR support with employee relations, TUPE, restructuring, redundancy, policies and management training. Whether you need a one-off compliance review or help with a difficult case, contact us for a free initial consultation at https://www.the-hfactor.com/.
Official references: Acas Employment Rights Act 2025: https://www.acas.org.uk/employment-rights-act-2025 ; UK Government implementation timetable: https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update ; Tribunal time limits: https://www.business.gov.uk/campaign/employment-changes/employee/employment-tribunal-time-limits/
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