Employment Law - Looking Ahead

The Employment Rights Bill received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025 (ERA 2025).

Some of the first reforms relate to trade unions and these are coming into effect on 18 February 2026. These include the following:

• Simplification of notice from trade union to employer of intention to ballot

The notice will no longer need to disclose the number of employees in each category that are expected to take part in the action. This applies to notices served on employers on or after 18 February 2026.

• Simplification of ballot papers

Ballot papers will just have to ask which type of industrial action members want to take part in – a strike or action short of a strike. This will apply to ballots ‘opening’ on or after 18 February 2026, unless a sample ballot paper has been provided to the employer before that date, in which case the actual ballot paper must reflect the sample. For these purposes, ‘opening’ means the first day when a voting paper is sent to any person entitled to vote in the ballot.

• Reduction in notice of industrial action

The notice of industrial action that a trade union must give to an employer will be reduced from 14 to 10 calendar days. This will apply to notices received by an employer on or after 18 February 2026.

• Removal of support threshold for workers in ‘important public services’

The requirement that at least 40% of those entitled to vote must have voted in support of the action will be removed. This applies to ballots ‘opening’ (see definition above) on or after 18 February 2026.

• Protection from dismissal

An employee who is taking protected industrial action will be protected from dismissal for the full duration of protected industrial action and after it has concluded. This will only apply where industrial action has begun by the employee on or after 18 February 2026.

• Requirement for union supervision of picketing removed

The current requirement for union supervision will be removed on or after 18 February 2026. So, for example, if picketing took place between 17-19 February 2026, supervision would be required on 17 February but not on the following two days.

• Mandate for industrial action extended

A mandate will be extended from 6 to 12 months where ballots have been ‘opened’ (see definition above) on or after 18 February 2026. Where a 6-month mandate has been given before 18 February 2026, this will not automatically convert to a 12-month mandate on that date – a union would need to re-ballot on or after 18 February 2026 to get a 12-month mandate.

• Certain provisions of TULRCA 1992 will not apply outside GB

Certain provisions, including those relating to access to employment, inducements and detriment, time off for trade union activities, and the duty to notify the Secretary of State of redundancies, will be amended so they do not apply where an employee or worker ‘ordinarily’ works outside Great Britain.

Employers should ensure that any staff involved in trade union relations or activities are trained on the above reforms.

The ERA 2025 removes the 26-week qualifying period for paternity leave and the 1-year qualifying period for parental leave, so that these become ‘day one’ rights. It also removes the restriction on taking paternity leave and on receiving statutory paternity pay after a period of shared parental leave.

Regulations have now also been made confirming the following:

• The above changes will take effect from 6 April 2026, i.e. where the expected week of childbirth (‘EWC’) is on or after 5 April 2026 or the child is born after 6 April 2026, or where a child is placed for adoption on or after 6 April 2026 or (in overseas cases) where the child enters Great Britain on or after 6 April 2026.

• From 18 February 2026 onwards, employees can give advance notice of paternity leave or parental leave that they intend to take from 6 April 2026.

• From 18 February 2026 onwards, where a child’s primary carer dies, the 26-week qualifying period for paternity leave is disapplied, as is the restriction on taking paternity leave after a period of shared parental leave.

• Where the EWC falls between 5 April and 25 July 2026, an employee wanting to take paternity leave may give 28 days’ notice (rather than notice by the 15^th week before the EWC).

Employers should ensure that they update their policies and procedures as soon as possible in advance of the above changes.

The ERA 2025 sets out several reforms to statutory sick pay (SSP) which will come into force on 6 April 2026:

• SSP will be payable from day one of sickness absence, and the current 3-day waiting period will no longer apply;

• the lower earnings limit will no longer apply to determine eligibility for SSP; and

• the rate of SSP will be 80% average weekly earnings or the current rate of SSP, whichever is lower.

Employers should budget for increased SSP costs from that date onwards. Employers should also review your payroll processes and sickness absence policies / procedures as a priority in advance of the changes coming in.

From 6 April 2026, where an employee reports that sexual harassment has occurred, is occurring or is likely to occur, this must be treated as a ‘protected disclosure’ for whistleblowing purposes under the ERA 2025. Workers who make such a disclosure will have protection from detriment and dismissal under the whistleblowing legislation.

Employers should ensure that whistleblowing policies & procedures are updated before the changes come into effect. We also recommend updated training for staff (particularly HR and managers) on how to handle whistleblowing complaints so that they are aware the law in this area will be changing.

The maximum cap on the protective award for failure to comply with collective consultation obligations will be increased from 90 to 180 days’ gross pay per affected employee from 6 April 2026. The government has said that it intends to provide guidance for employers on compliance with collective consultation obligations ‘in due course’.

Where an employer is attempting to ‘fire and rehire’, there is scope for the protective award to be increased by 25% where an employer fails to comply with the Statutory Code of Practice on Dismissal & Re-Engagement. In such cases, the maximum cap would therefore be 225 days’ gross pay per affected employee.

Employers should reflect on the necessity of any organisational changes now, before the new provisions come into force. After 6 April 2026, employers should factor in that there will be significantly higher penalties for failing to comply with their obligations. For the avoidance of doubt, the above increase does not apply to the protective award for failure to comply with TUPE obligations.

The government is making regulations to give bereaved partners the right to extended unpaid paternity leave where the mother or adopter of a child dies in childbirth / within a year of the birth or adoption. These regulations are currently before Parliament and are intended to come into effect on 6 April 2026.

Notice and eligibility requirements are set out in the regulations. Broadly speaking, an employee can take a single period of unpaid bereaved partner’s paternity leave (‘BPPL’) after the bereavement and during a 52-week paternity leave eligibility period.

The regulations give employees taking BPPL similar protection to other types of family-leave: for example, they have a right to the same terms and conditions of employment (save as to remuneration), may take up to 10 ‘keeping in touch’ days, have the right to be offered a suitable alternative in redundancy situations up to 18 months after the birth or adoption, and are protected from detriment and dismissal.

Employers should keep a watching brief on this legislation while it makes its way through Parliament. In due course, employers should ensure that policies & procedures are updated, and that staff (particularly HR and managers) are informed about the new provisions.

• Electronic & workplace balloting – closes 28 January 2026
• Reform of non-compete clauses in employment contracts – closes 18 February 2026
• Acas consultation on time off for trade union duties & activities – closes 5pm on 17 March 2026

In addition:

• We understand that the government intends to launch a consultation on a revised Code of Practice on access and unfair practices during the recognition and derecognition process “early in 2026”.

• The government also intends to launch public consultations in Spring 2026 on: (i) blacklisting, (ii) protection from detriment for taking industrial action, (ii) a new Code of Practice on the statutory trade union access framework.

• According to the government’s roadmap, several other consultations are timetabled for “early 2026”, including those on tipping law, collective redundancy and flexible working. Some of the consultations originally timetabled for late 2025 have not yet been published (for example, on ending the use of zero hours contracts) so we may see some of those in the coming months as well.

Last year proved to be another year of constant developments in the world of business immigration, and 2026 looks set to maintain the same pace of change. Key issues to keep an eye on in the coming months are:

• Electronic Travel Authorisation (“ETA”) scheme: Following its soft launch, the ETA scheme will be mandatory from 25 February 2026. Those non-visa nationals that require an ETA will not be permitted to board a flight to the UK without one. This serves as an important reminder for businesses to consider whether an ETA, visit visa or alternative visa is required for staff travelling to the UK depending upon what they intend to do whilst in the UK and how long they need to stay for.

• New English language requirements are catching applicants out: English language requirements increased for initial skilled worker applications since 8 January 2026. Whilst this change is now in effect, we are continuing to see visa applicants who prepared their application in advance being caught out with delays as they have to take new English language tests.

• eVisa rollout: The Home Office’s eVisa rollout continues. With moves to digitise as far as possible most worker groups will now have an eVisa from the outset (as will visitors since 12 January), as opposed to a vignette in their passport. It is vital affected employees ensure their eVisa account is up to date at all times to avoid travel difficulties.

• Illegal working beyond employment: The Border Security, Asylum and Immigration Act 2025 received Royal Assent in December 2025. The Act includes a provision intended to significantly expand the prevention of illegal working regime beyond employees to workers, subcontractors and online matching arrangements. This is not yet in force as secondary legislation is required. However, this is expected to spell a significant change for UK businesses and increase exposure to civil penalties for illegal working. A consultation on the topic closed on 10 December 2025. Employers should keep an eye out for further developments on this, as changes are expected to be rolled out in 2026.

• The future of the Temporary Shortage List (“TSL”): The Migration Advisory Committee (“MAC”) has been commissioned to review the TSL. With the first part of their review completed, part two involves them reviewing a long-list of potential roles for inclusion on the TSL. If a role is below skill level RQF 6 but falls on the TSL it will qualify for skilled worker sponsorship. A call for evidence closes on 2 February 2026. The TSL in its current form is set to end on 31 December 2026. The MAC’s review will be crucial to the future of the TSL and requirements employers/sectors may have to meet to benefit from the list. Temporary Shortage List review: stage 2 - GOV.UK

• Sponsorship salary requirements: The MAC has also been looking at salary requirements for sponsored work routes. They have issued recommendations to the Home Office on future salary requirements. Employers should watch this space for further developments this year on the financial thresholds for sponsorship as the Home Office reviews these recommendations. Review of salary requirements (accessible) - GOV.UK

• Earned settlement: Probably the most controversial development in 2025 was the new earned settlement model the government intends to introduce. This is likely to continue as a hot topic for immigration in 2026 too. A consultation on certain elements of the proposal closes on 12 February 2026. The proposals will mark a significant shift in the UK’s rules on settlement. Given the potential impact on recruitment, retention and business costs this is a really important topic for UK employers to monitor. Earned settlement - GOV.UK

• Focus on compliance: Over the last year we’ve seen a marked increase in the Home Office’s focus on sponsorship and prevention of illegal working compliance, and there is no sign of that easing. As well as keeping on top of the above developments, employers should ensure they are comfortable and complying with their sponsor reporting and record-keeping duties, as well as completing robust and compliant right to work checks.