New Employment Laws 2026: Crucial Advice for Employers and Employees
UK workplaces are facing some of the most significant new employment laws in 2026, driven by the introduction of the Employment Rights Act 2025.
Employment law experts Rebecca Reid and Katie Bullimore warn these reforms represent the biggest shift in UK employment legislation in over a decade. While some details are still evolving, both employers and employees should act now to prepare.
What Are the Key UK Employment Law Changes in 2026?
The UK employment law changes in 2026 will impact hiring, dismissal, workplace policies, and employee rights across all sectors.
Key changes include:
- Reduced qualifying period for unfair dismissal
- Updates to statutory sick pay
- Increased compliance expectations for employers
- A likely rise in employment disputes
Reduction in Unfair Dismissal Qualifying Period
One of the most important changes under the Employment Rights Act is the reduction in the qualifying period for unfair dismissal claims.
- Current: 2 years’ service
- New: 6 months’ service
This is a major shift in legal employment law, increasing risk for employers.
What this means:
- Less time to assess new hires
- Greater pressure on recruitment processes
- More robust probation procedures required
Employers must ensure hiring decisions and performance management are more effective from day one.
Why Many Employers Are Not Prepared
Despite the scale of the new employment laws 2026, many organisations are still unprepared.
The legislation has undergone multiple amendments between the House of Commons and House of Lords, creating uncertainty.
However, delays in preparation could expose businesses to legal risk.
Employers should:
- Review employment contracts
- Update internal policies
- Strengthen HR processes
Statutory Sick Pay Changes in 2026
A confirmed update is the removal of the three-day waiting period for statutory sick pay (SSP) from April 2026.
Impact on businesses:
- Increased financial responsibility
- Need to update sick pay policies
- Opportunity to review employee handbooks
This is a key area where early preparation can prevent compliance issues.
Expect an Increase in Employment Disputes
The UK employment law changes 2026 are likely to reshape the dispute landscape.
With easier access to unfair dismissal claims:
- Claims may increase
- Settlement agreements may become more common
- Alternative claims (e.g. discrimination) may decrease
Employers should prepare for a more active legal environment and consider early dispute resolution strategies.
What Employees Should Do Now
Employees should also take proactive steps as new employment laws 2026 (keyword reinforcement) come into effect.
Recommended actions:
- Review updated workplace policies
- Understand your rights under the Employment Rights Act
- Raise concerns early and constructively
These Changes Will Affect Every Workplace
These reforms will impact:
- Small businesses
- Large organisations
- All industries across the UK
The message is clear: be proactive, not reactive.
How Can We Help?
If you need advice on navigating the new employment laws 2026, get in touch with our specialist employment law solicitors in Leicester.
Contact our team by telephone on 0116 247 2000, complete our contact form, or send us an email via info@smithpartnership.co.uk.
We also have offices across the East Midlands and Staffordshire with expert settlement agreement solicitors, in Burton, Derby, Stoke-On-Trent and Swadlincote.
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