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The Employment Rights Act 2025 - The People Agenda 2026
The Employment Rights Act 2025 introduces a wide-ranging programme of reform to UK employment law, representing one of the most significant shifts in the employer-employee relationship in recent years. Implementation will take place in phases over the next two years, with a substantial number of changes scheduled to come into force during 2026.
Further guidance is expected through the Government’s Implementation Roadmap and ongoing consultations.
For aspiring solicitors, particularly those interested in employment, dispute resolution, or commercial practice, understanding these reforms is increasingly important. The changes will have practical implications for advisory work, litigation risk, and workforce strategy across a broad range of sectors.
Key Reforms Expected to Take Effect in 2026
February 2026 - The Key Reforms expected to take effect in February 2026 are:
Making it automatically unfair to dismiss an employee for taking part in an industrial action.
Simplification of the balloting procedure and shorter notice periods for industrial action.
April 2026 - The key reforms expected to take effect in April 2026 are:
Doubling of the maximum protective award for failure to consult on collective redundancies from 90 to 180 days’ pay.
Paternity leave and unpaid parental leave are becoming ‘day one’ rights.
Sexual harassment is becoming a category of protected disclosure under the whistleblowing regime.
Removal of the lower earnings limit and three-day waiting period for statutory sick pay.
Simplification of the trade union recognition process and introduction of electronic and workplace balloting.
October 2026 - The following key reforms are expected to take effect in October 2026:
Making it automatically unfair to dismiss an employee for refusing to accept certain variations to their contract of employment.
Strengthening the duty to prevent sexual harassment at work so that employers must take all reasonable steps to prevent it.
Reintroducing employer liability for third-party harassment.
Protection against detriment for taking industrial action.
Extending the time limit for employees to bring most claims in the employment tribunals from three months to six months.
Trade union information and access rights.
Unfair Dismissal Qualifying Period
Although the shortened qualifying period for unfair dismissal protection is not due to be introduced until 1 January 2027, employers will need to be mindful that employees whose effective date of termination falls on or after that date will benefit from the new regime. This has particular relevance when calculating notice periods and managing dismissals towards the end of 2026.
Consultations and Policy Developments
Several consultations are due to close during 2026. These include the consultation on a draft Code of Practice for electronic and workplace balloting in statutory trade union ballots, which is intended to provide practical guidance for employers, trade unions and independent scrutineers. In addition, the Government has published a working paper on the potential reform of non-compete clauses in employment contracts, with options ranging from statutory limits on duration to an outright ban.
Further consultations are expected later in 2026, including proposals relating to zero-hours contracts, trade union recognition processes, protection against detriment for taking industrial action, and flexible working arrangements.
Relevance for Aspiring Solicitors
The scale and scope of the Employment Rights Act 2025 are likely to lead to an increase in advisory work for employers, particularly in relation to employment contracts, workplace policies, and internal procedures. The reforms are also expected to result in greater employment tribunal litigation risk, as the balance of rights shifts further in favour of employees and time limits for bringing claims are extended.
For aspiring solicitors, these developments highlight the importance of understanding not only the legal framework but also the practical and strategic considerations that underpin employment advice. Familiarity with these reforms will be particularly valuable for those pursuing careers in employment law, litigation, or commercial practice where employment risk forms part of wider business decision-making.
Conclusion
The Employment Rights Act 2025 marks a fundamental change to the UK employment law landscape. As the reforms continue to be implemented throughout 2026 and beyond, aspiring solicitors should seek to develop a clear understanding of both the legal changes and their practical implications. Doing so will provide a strong foundation for future practice in an area of law that is set to remain highly active and evolving.
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