What’s Coming in 2026

The coming year is set to see many changes as a result of the Employment Rights Act 2025. At CoLaw, we have developed a list of some of the key updates to ensure employers, HR professionals and line managers are prepared for what promises to be a very busy year.

Key Legislative Changes

Paternity Leave (Bereavement) Act 2024

In December 2025, the Paternity Leave (Bereavement) Act 2024 came into effect. When a child’s mother or intended adopter dies during childbirth or within 12 months of birth or placement, including same-sex couples and surrogacy arrangements, paternity leave will be available from day one of employment. Paternity leave can still be taken even if shared parental leave has already been used.

Trade Unions and Industrial Action

Immediately after the Employment Rights Bill became law on the 18^th December 2025, the Strikes (Minimum Service Levels) Act 2023 was repealed, meaning the rules around minimum service levels for strikes was removed.

From February 2026, many of the provisions in the Trade Union Act 2016 will be repealed and several changes will come into effect:

• Dismissal for taking part in industrial action will be automatically unfair;
  • required notice period of industrial action will reduce from 14 to 10 days;
  • picket supervisors will not be required;
  • political fund rules will change;
  • validity of a strike ballot will be extended from 6 to 12 months; and
  • unions will need a simple majority to vote for action.

It is also expected that the requirements for statutory recognition will be reduced in April 2026, making it simpler for unions to obtain registration.

Then, in October 2026, more duties will come in, such as informing workers of their right to become a member of a trade union and granting unions access to workplaces, both physically and digitally.

Fair Work Agency (FWA)

From April 2026, the FWA is expected to be established. The FWA will enforce minimum wage, holiday pay, statutory sick pay, the Employment Tribunal penalty scheme, and some aspects of the Modern Slavery Act 2015. FWA may cover more in the future.

Collective Redundancy Protective Award

At present, if an employer fails to consult in the collective redundancy process of 20 or more employees, the maximum protective award is 90 days’ pay. From April 2026, the award will increase to 180 days’ pay.

National Minimum Wage Increase

From April 2026, a rise in the National Living Wage (NWL), paid to workers aged 21 and over, and National Minimum Wage (NMW) will come into effect.

Statutory Rates Increase

From April 2026, substantial changes will be coming to the statutory rates of pay.

• Statutory Sick Pay (SSP)

Currently, if employees earn more than the Lower Earnings Limit (LEL), they will qualify for SSP on the fourth day of sickness absence. In April, the LEL will be removed for SSP. All employees will be eligible for SSP from day one of sickness absence. The weekly rate of SSP will increase from £118.75 to £123.25 or 80% of the employee’s normal weekly earnings, whichever is lower.

• Statutory Maternity Pay (SMP), Statutory Paternity Pay (SPP), Statutory Adoption Pay (SAP), Statutory Neonatal Care Leave Pay, Statutory Shared Parental Leave Pay, Parental Bereavement Pay, and maternity allowance rates will increase from £187.18 per week to £194.32.

Family Rights

From April 2026,the minimum service requirements for entitlementto paternity leave and parental leave will be removed. This means that from day one of employment, subject to eligibility criteria, all employees will be entitled to paternity and parental leave.

Whistleblowing Protections for Sexual Harassment

From April 2026, sexual harassment will be added as a ‘qualifying disclosure’ under whistleblowing legislation. As a result, individuals who report sexual harassment will be protected from detriment and unfair dismissal.

Sexual Harassment

From October 2026, companies will be expected to take all reasonable steps to prevent sexual harassment in the workplace. A step further than the current law which expects reasonable steps.

Third Party Harassment

From October 2026, employers will become liable where a third parties, e.g. customers or suppliers, harasses an employee in the course of their employment. Employers must take all reasonable steps to defend this type of claim at tribunal.

Employers may want to consider conducting proactive risk assessments, using action plans to minimise risk and monitor its effectiveness, and send letters to clients, customers and suppliers stating the company’s position on harassment.

‘Fire and Rehire’

From October 2026, ‘fire and rehire’, the process of dismissing someone and then offering to rehiring them on new terms and conditions, will become automatically unfair in most circumstances, except where the employer faces financial difficulty.

Tribunal Claim Extension

From October 2026, the time limit to claim at Employment Tribunal will extend from 3 months to 6 months for all claims.

If you are unsure about how to navigate these changes, call CoLaw today on 01509 861262 or email hello@colaw.co.uk.