Upcoming Employment Law Reforms - Berry Smith

Upcoming Employment Law Reforms

Part 1: What to Expect in February 2026

Following Royal Assent of the Employment Rights Act in December 2025, employers should expect significant changes to employment rights in the UK over the coming years. However, not all changes will take effect at once and so the team at Berry Smith will guide you through each stage as the various measures in the Employment Rights Act take effect. This article will be part 1 of a 4-part series about employment law changes to come in 2026 and 2027.

In the meantime, we have provided a brief table below outlining the key changes to employment law anticipated over the next couple of years. We have also included a list of any ongoing consultations. Given the plethora of regulations to come supplementing the Employment Rights Act 2025, we would encourage employers to engage with the consultations as interested stakeholders to help shape the future regulations.

This article focuses on the employment law changes coming into force in February, as well as those that may already have come into effect, and we will continue to keep you updated as further changes are implemented and explain what they mean for both employers and employees.

Employment Rights Act 2025 – Implementation Timeline

TimeframeKey Developments
Autumn 2025Government opens consultations on: – Enhanced protections for maternity dismissals – Bereavement leave – Trade union access to workplaces – Trade union information duties – Electronic balloting (e-balloting) Many of the above consultations are now closed.
December 2025Employment Rights Bill becomes the Employment Rights Act 2025

Immediate effect: Repeal of the Strikes (Minimum Service Levels) Act 2023
Winter 2025 /
Early 2026
Consultations expected on regulations covering:
• Guaranteed hours
• Fire and rehire
• Regulation of umbrella companies
• Review periods for zero-hours contracts and the definition of ‘low hours’
• Non-disclosure agreements (NDAs)
• Protection against detriment for taking industrial action and blacklisting
• Regulation of tips
• Collective redundancy rules
• Flexible working
February 2026• Repeal of most of the Trade Union Act 2016 (strike-related provisions)
• Simplified industrial action and ballot notice requirements
April 2026• Protective award doubled for failure to consult on collective redundancies from 90 to 180 days’ pay per employee
• Day 1 rights to paternity and parental leave
• Statutory Sick Pay (SSP) reforms
• Fair Work Agency established
• Changes to trade union recognition rules
• Electronic balloting enabled
• Sexual harassment disclosures can qualify as protected whistleblowing
October 2026• Fire and rehire ban
• Trade union access to workplace rights
• Duty to take ‘all’ reasonable steps to prevent sexual harassment
• Liability for third-party harassment
• Employment Tribunal time limits extended
• Enhanced protections for union activity
• Tightened tipping laws
• Duty to inform workers of their right to join a trade union
2027• Unfair dismissal available at 6 months’ service
• Possible removal of the unfair dismissal compensation cap
• New collective redundancy consultation thresholds
• Guaranteed hours and shift-scheduling rules
• Strengthened flexible working request rights
• Mandatory gender pay gap and menopause action plans
• Enhanced protections for maternity returners
• Blacklisting and wider industrial relations reforms
• Regulation of umbrella companies
• Bereavement leave provisions
• Additional protections from sexual harassment – employers will now need to take ‘all reasonable steps’ to prevent sexual harassment

February 2026

Many employers may be surprised to learn that there are various changes which will come into effect in February 2026.

Firstly, in terms of dismissal protection, taking part in industrial action will be treated as automatically unfair dismissal from 18 February 2026. This change removes the current rule

that limits unfair dismissal claims to a 12-week period, making dismissals automatically unfair at any time.

Several reforms relating to trade union activity will also take effect on 18 February 2026. The notice period required for industrial action will be reduced from 14 days to 10 days. Unions will only need a simple majority to authorise industrial action. In addition, picket supervisors will no longer be required. Industrial action mandates will be extended to last for 12 months instead of the current 6 months and the current additional rules for public sector will be removed. The processes for industrial action and ballot notices will be simplified.

At the time of writing, the government has laid a draft updated Picketing Code of practice and a draft updated Code of Practice on industrial action ballots and notice to employers. Each of these codes codify the changes set out in the preceding paragraph and we would suggest employers consult these to see the changes in full. They can be found here and here.

For employers, the February 2026 changes mean a higher risk of unfair dismissal claims, as dismissing employees for taking part in industrial action will become automatically unfair. Employers may also see industrial action occur more frequently due to shorter notice periods, simpler voting requirements, and longer ballot mandates. As a result, employers should review their policies and ensure managers are prepared for the new rules.

In addition, employers should be aware that the Paternity Leave (Bereavement) Act 2024 came into effect on 29 December 2025. This law removes the length of service requirement for paternity leave where a child’s mother, adopter or intended adopter dies in connection with a birth or placement. This means that statutory paternity leave will be available from the first day of employment (however this does not apply to statutory paternity pay). Employers should review their policies to ensure they reflect the removal of this service period for statutory paternity leave in these circumstances.

Conclusion

As these changes come into force, we will continue to provide updates and guidance on how to prepare for them. Notably, UK employment law is set to undergo further significant changes in April 2026, and we will ensure you are kept fully informed. Please stay tuned for part 2 of this series in February 2026 which will cover the changes to come in April 2026 in more detail.

Please note the contents of this article do not constitute legal advice. If you require any further information or if you would like our assistance, please contact us at employment@berrysmith.com or on 02920 345 511.