Preparing for Employment Rights Act changes in 2026 and 2027

There have been no material legislative changes this month in relation to the Employment Rights Act 2025. However, employers should now begin preparing for the anticipated changes expected to come into force throughout 2026 and 2027.

Employers should start reviewing their internal frameworks, including employment contracts, disciplinary and grievance procedures, probationary periods, flexible working arrangements and policies relating to atypical workers, to ensure they are ready for the upcoming changes.

The main changes that will affect the transport sector which are expected after this month are set out below:

August 2026: Changes to trade union ballots

From August 2026, trade union ballots may allow electronic and in-person voting and the process of removing the current 50% turnout requirement for industrial action ballots will begin.

October 2026: New employer duties and worker protections

Employers will become liable for third-party harassment unless they can demonstrate they took all reasonable steps to prevent it. At the same time, stronger duties will be imposed on employers to prevent sexual harassment in the workplace.

Employment tribunal time limits will also change, with the deadline for claimants to bring employment claims increasing from three months to six months.

Additional reforms expected in October 2026 include:

• New trade union rights, including workplace access and time off for union equality representatives.
• Enhanced protections for workers involved in industrial action.
• Changes to tipping policies and employer obligations.

January 2027: Changes to unfair dismissal rights

From 1 January 2027, protection from unfair dismissal will become a right after six months’ service and the limit on the compensatory award for unfair dismissal will be removed. Dismissing an employee and then rehiring them on worse terms and conditions will become automatically unfair dismissal in most circumstances.

Further changes expected during 2027

Subject to the Governments consultations, further employment law changes are anticipated throughout 2027.

These include:

• Stronger protections for pregnant employees and those returning from maternity leave.
• A new right to unpaid bereavement leave.
• Guaranteed hours rights for zero hours and low hours workers.
• Compensation for cancelled or shortened shifts.
• A requirement for employers to provide reasonable notice of shifts.
• A requirement for employers to provide clear justification for flexible working refusals.
• Non-disclosure agreements (NDAs) that prevent the disclosure of harassment or discrimination will become unenforceable.
• Mandatory gender pay gap action plans and menopause action plans for larger employers.
• Expanded collective redundancy protections.
• Additional trade union reforms.

What should employers do now?

While many of these reforms remain some time away, employers should use the coming months to assess whether their current policies and procedures will remain compliant.

Taking proactive steps now will help organisations minimise legal risk, maintain compliance and ensure they are prepared when these significant employment law changes come into force.

Need help preparing your business for upcoming Employment Rights Act changes? Our employment team can review your contracts, policies and procedures to ensure your organisation is ready for the changes ahead. Get in touch today.

This article was written by Gabrielle Scriven.