Get prepared and stay ahead!
The ERA, part of the UK Government’s “Plan to Make Work Pay”, represents the most significant modernisation of UK employment law in decades. It spans reforms such as new “day one” employee rights, stronger protections on zero-hours contracts and increased sick pay, as well as enhancing family leave, harassment prevention, flexible working and Trade Union recognition.
Why It Matters
For businesses, these reforms bring both challenges and opportunities, making HR support more critical than ever. Failing to adapt could lead to costly tribunal claims and reputational damage. We can provide clarity, reduce compliance risks, and upskill your teams.
What to know and when to act
After a long period of anticipation, it’s finally time to consider the impact on your business, review how it may affect your operations, and take the necessary steps to respond effectively. With implementation starting in the next couple of months, you need to act now to understand how it will affect you and what you need to do in response.
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Summary of Changes
For immediate consideration:
Unfair Dismissal and probationary periods
This much heralded day one right has now been amended to six months with an unlimited cap on tribunal compensation. While the implementation of this right is expected in 2027, it will be applied retrospectively meaning anyone employed from January 2026 will gain this right after one year of service and anyone employed from July 2026 will benefit from this right regardless.
It will be really important to review your contractual probation periods for any new joiners, to give you time to manage any performance issues with new joiners, before the six-month point.
Developing skills and procedures for managing performance will be vital.
Pre-April 2026:
Industrial action rules eased
Rules imposed by the previous government making it harder to take industrial action will be largely repealed.
From April 2026:
Statutory Sick Pay
Enhanced sick pay provisions meaning SSP becomes payable from day 1 of sickness. The Act also removes the requirement for people who earn at least the lower earnings limit, who become eligible for SSP at 80% of normal weekly earnings.
Employers who only pay SSP may find that the number of short-term absences increase as employees will retain a small amount of pay should they be off sick for 1-3 days. However, it will mean that employees who are ill and unable to work from home, will no longer feel they need to attend work purely to prevent being unpaid.
Review your absence reporting rules, monitor absence levels and provide support to managers to tackle problem absences.
Parental Leave/Paternity Leave
These types of leave will become a day one right, removing the length of service requirements to be eligible.
Workplace Harassment Protections
Sexual harassment is added to the list of types of disclosure that qualify for protection under the whistleblowing legislation.
Update your policies and procedures, including payroll, and communicate to managers and others as necessary.
Trade Union Recognition rules eased
Union recognition will be made easier by lowering membership thresholds, removing the need to show likely majority support and the 40% turnout rule, therefore requiring only a simple majority in recognition ballots. Protections against employer interference will be strengthened. These measures aim to boost recognition applications and simplify balloting. This will be supplemented in October 2026 by the obligation to inform new employees of their right to join a trade union and the rights of trade union access to the workplace.
If you don’t recognise a union, proactively engage with any workplace representatives and otherwise foster a positive workplace culture and relations.
From October 2026:
Extension of time limit for bringing employment claims
The time limit for most claims is currently three months. The change will apply to all employment tribunal claims, including unfair dismissal and discrimination.
Restrictions on “fire and rehire” practices
An employer’s ability to use “fire and rehire” as a way to enforce a change to contractual terms will be significantly reduced, with enforced changes being deemed automatically unfair in most circumstances.
Strengthened harassment protections
Employers will be liable for all types of third-party harassment of employees in the course of their employment, where the employer has failed to take all reasonable steps to prevent this.
The sexual harassment prevention duty is amended to add the word “all”. Employers will have a duty to take all reasonable steps to prevent sexual harassment of their employees in the course of their employment. Further guidance is expected in 2027.
Review your harassment policies, risk assessments, communication and training arrangements.
Employee consultation on tips allocation policies
Employers that are required to publish an allocation of tips policy are required to review the policy, in consultation with employee representatives, at least every three years. Where there are no existing employee representatives, consultation must be with affected employees.
Review your compliance with tipping legislation.
From 2027:
Increased protection from dismissal for pregnant employees and those on or returning from family leave
Enhanced protections before, during and for six months after leave, including maternity, adoption leave, shared parental leave and neonatal care leave.
Restrictions on zero-hours contracts
Use of zero hours contracts will be restricted as, where an employee regularly works a regular number of hours over a set reference period, there will be a requirement for employers to offer a contract to reflect those hours to provide certainty to the employee. There will also be a requirement for employers to provide reasonable notice of any change or cancellation of a shift. The details of these measures will be consulted on in early 2026 and they are expected to take effect in 2027.
Review your use of zero hour contracts to ensure they are being used appropriately; implement new contract types where necessary.
Right to request flexible working procedure changes
An employer will be able to refuse a request only if it is reasonable to do so and must state why it considers its refusal to be reasonable.
How can Menzies help?
- HR Audit – Review your current practices and identify your priorities for action.
- Training for line managers –Line managers are usually the first point of contact for employees. Equipping them with training and coaching is vital to ensure compliance with these new rules, creating a positive work culture, protecting the business, and managing risk.
- Training for employees – Training on key elements of Employment legislation including the Prevention of Sexual Harassment and Handling Sickness Absence (Statutory Sickness Pay will be payable from Day one in April 2026).
- E-Learning – For essential and regular compliance training, e-learning enables the allocation of key courses with the ability to track completion rates via comprehensive reporting. Explore our e-learning courses.
- Strengthening Recruitment, Onboarding & Performance processes – Ensure you manage the early stages of employment effectively and implement robust performance management early on.
- Policy & contract updates – Identify gaps in existing policies and contracts and draft Employment Rights Act compliant documentation.
- Advice and Support – We are available to answer your questions and support issues relating to all aspects of your compliance.
