“The Labour government’s flagship manifesto pledge was for new legislation to bring fairness to the workplace, and redress some of the imbalance workers in a dynamic gig-based economy were said to experience. 18 months after the beginning of this Parliament the Employment Rights Act 2025 has now become law. Some of the most eye-catching manifesto promises, such as a ‘day one’ right to bring an Unfair Dismissal claim, and an outright ban of zero hours contracts, have been mothballed. However there remain a number of other measures of significance coming into force on a rolling basis in 2026 and 2027. By the time the final parts of the Act have come into force its impact will undoubtedly be regarded as significant.
Pre-April 2026, Trade Union legislation is being amended, removing minimum service level requirements and simplifying administrative requirements for trade union activity. In 2026 and 2027 trade union law will be further rationalised to facilitate online voting and improve trade union access to the workplace etc.
In April 2026, other major changes will happen, including:
– both paternity leave and ordinary parental leave will become ‘day one’ rights, rather than ones earned after 26 weeks/ 1 year;
– For low paid workers, there will be no minimum earning requirement to receive Statutory Sick Pay (SSP), and SSP will apply from day 1 instead of day 4.
– Sexual harassment will become a qualifying disclosure for whistleblowers.
In October 2026 the limitation period for bringing a claim in the Employment Tribunal will be extended from 3 months to 6 months. This latter could mean an increase in claims but might also lead to better articulated claims as ex-employees are clearer about their post termination position. Oct 26 will also herald the end of ‘fire and re-hire’, where workers are dismissed then brought back in to carry out the same role on less favourable terms, unless businesses can show they are in severe financial difficulty and genuinely have no other option.
Arguably, the most significant changes come in the last tranche of the Act’s roll out. In 2027 the qualifying service employees need before they are eligible to bring an Unfair Dismissal claim in the Employment Tribunal will be reduced from 2 years to 6 months, and the compensation cap will be removed. Moreover workers on zero hours contracts will be entitled to request regular hours, and there will be compensation for shifts which are cancelled, deferred or cut short.
In short, although the two most important measures trailed in the Employment Rights Act before the July 2024 election will not in fact be made law, provisions in the areas of both Unfair Dismissal and zero hours contracts will be extended significantly by the end of 2027 and other measures to be introduced in 2026 and 2027 will have a marked impact on legal protections in the workplace.”
–Dr Joanna Kerr
