Key steps employers can take this January
Employment law reform is firmly back on the agenda, with the Employment Rights Act expected to introduce a number of changes over the next few years. While much of the detail is still subject to further guidance, what’s already clear is that employers will benefit from early awareness and thoughtful preparation.
January is a natural point for reflection and planning. Not because organisations need to have everything finalised, but because understanding what’s likely to change, and when, allows leaders to prepare calmly and proportionately.
This isn’t about panic or overhauls. It’s about understanding what’s coming, keeping an eye on developments, and taking steady, practical steps now.
What is the Employment Rights Act and why does it matter?
The Employment Rights Act forms part of a wider programme of employment law reform aimed at improving fairness, security, and clarity at work. Proposals focus on areas such as worker protections, enforcement, employee voice, and access to key employment rights from day one.
As with most significant legislative change, the Act will be introduced in phases rather than all at once. Some elements remain subject to consultation, and further guidance will continue to emerge from government and bodies such as ACAS.
For employers, this means preparation is about staying informed, understanding likely impacts, and avoiding a reactive approach when changes are confirmed.
Understanding the phased timeline
While full details are still developing, current proposals suggest changes linked to the Employment Rights Act will be introduced gradually across 2026 and beyond. Understanding this sequencing can help employers prioritise where to focus their attention.
Based on information available at the time of writing, employers should be aware of the following indicative phases.
From 18th February 2026: strikes and union rights
From February, changes relating to industrial action and trade union rights will be introduced. These may affect how organisations engage with unions, respond to collective activity, and manage employee voice.
For employers, this is a good time to:
- review existing union relationships or recognition agreements
- consider how employee voice is currently supported
- ensure managers understand appropriate responses to collective concerns
Even organisations without formal union presence may benefit from strengthening consultation and communication channels early.
From April 2026: SSP day-one rights and enforcement
Spring 2026 is expected to introduce some of the most operationally significant changes, including:
· Day-one entitlement to Statutory Sick Pay
· Day-one paternity and parental leave
· Changes to family leave pay and Statutory Sick Pay arrangements
· A National Minimum Wage increase
· Sexual harassment disclosures becoming protected disclosures under whistleblowing legislation
· The introduction of a Fair Work Agency to support enforcement
These changes are likely to have direct implications for payroll, absence management, and family leave processes.
Practical steps employers can take now include:
· reviewing payroll systems to ensure they can support day-one SSP
· checking absence tracking and reporting processes
· reviewing family leave policies and onboarding documentation
· considering the cost and resourcing implications during budget planning
Early system checks can prevent pressure later.
From May 2026: real living wage increase
Updated real Living Wage rates for 2025–26 were announced in October 2025, with accredited Living Wage Employers expected to implement the new rates by 1 May 2026 at the latest.
For employers, this makes May an important milestone for pay planning and budgeting, particularly for lower-paid roles and teams where pay differentials may be affected.
Practical steps employers may want to consider include:
- reviewing current pay rates against the updated real Living Wage levels
- modelling the potential cost impact across teams and roles
- considering any knock-on effects on pay structures, progression and internal equity
- planning clear communication with employees about pay decisions
Taking a proactive approach allows organisations to balance fairness, affordability and transparency, while avoiding last-minute pressure as implementation deadlines approach.
From October 2026: conduct, protection, and union access
Later in 2026, proposals are expected to focus on workplace conduct and protections, including:
A strengthened duty to prevent workplace harassment
Restrictions on fire-and-rehire practices
Expanded rights around union access
Tribunal claim limit will increase from 3 to 6 months
Employers will have a duty to inform employees of the right to join a trade union
For many organisations, this will place increased emphasis on:
- manager capability and confidence
- clear, consistently applied policies
- training around respectful behaviour, feedback and performance conversations
Investing in manager training ahead of time can significantly reduce risk and improve employee experience.
2027 and beyond: dismissal, flexibility, and contract security
Looking further ahead, proposals suggest additional reforms may include:
· Changes to unfair dismissal rights, potentially reducing qualifying periods
· New protections relating to zero-hours contracts
· Enhancement to flexible working rights
While these changes are not imminent, they are likely to influence how employers approach recruitment, probation, and flexibility.
Now is a sensible time to:
- review probation processes and timelines
- ensure performance conversations happen early and are well documented
- consider whether current flexible working approaches are consistent and sustainable
As with all legislative reform, these timelines and measures remain subject to consultation and clarification. Employers should continue to monitor official guidance as details develop.
Why January is the right time to prepare
January already prompts many organisations to review policies, confirm budgets, and plan training for the year ahead. That makes it an ideal time to start thinking about how upcoming employment law changes might affect your business.
Preparation at this stage doesn’t mean rewriting every policy or redesigning every process. It’s about understanding your current position and identifying where future changes may have the biggest impact.
Having visibility of what may be coming, and when, allows employers to plan calmly, rather than react under pressure.
Practical areas employers can start reviewing now
While guidance will continue to evolve, there are several areas where early review can be particularly valuable.
Reviewing contracts and policies
A light-touch audit of contracts and policies can help identify where updates may eventually be required, particularly around sick pay, family leave, flexibility, and probation. Knowing what. You have in place makes adapting later far easier.
Looking at systems and data
Payroll capability, absence tracking, and record keeping will be critical as day-one rights expand. Accurate, consistent data supports both compliance and fair decision making.
Rethinking recruitment and probation
Clear expectations, structured onboarding, and meaningful probation reviews will become increasingly important as dismissal protections evolve. Recruiting well and addressing issues early benefits both employers and employees.
Supporting and training managers
Managers are often the first point of risk. Training around performance management, flexible working, feedback, and fairness helps ensure policies work in practice, not just on paper.
Communicating with employees
Employees will understandably want clarity as new rights are introduced. Planning communication early, through FAQs, briefings, or manager-led conversations, helps build trust and manage expectations.
Employee relations and engagement
Some of the proposed changes place greater emphasis on employee voice and fair treatment. For employers, this is an opportunity to strengthen relationships rather than see reform as a threat.
Open communication, meaningful consultation, and genuine engagement support healthier cultures and reduce the likelihood of conflict.
Handled well, these changes can support wider goals around wellbeing, inclusion, and values-driven leadership.
Staying informed without information overload
With so much commentary circulating, it’s easy to feel overwhelmed. Not every headline reflects confirmed law, and not every opinion applies to every organisation.
Reliable sources such as ACAS, CIPD, and official government updates can help separate fact from speculation. Expert guidance can also translate legal developments into practical workplace action.
A calm, confident approach to what’s ahead
The Employment Rights Act represents meaningful change, but it doesn’t require employers to have all the answers today.
Those who take time now to understand the likely timeline, review their foundations and support their managers will be far better placed as further guidance emerges.
Preparation doesn’t need to be daunting. With the right approach, it can be an opportunity to strengthen people practices and move forward with confidence.
If you’d like support reviewing policies, training managers or planning next steps, we’re here to help.
