Advice from an HR consultant in Milton Keynes working across the UK, on the Employment Rights Act changes already in force and what's still ahead in 2026 and 2027.
The Employment Rights Act has already started reshaping how you manage your people.
Several changes landed in April 2026. More are coming in July, October, and well into 2027.
If you haven't reviewed your contracts, policies or how your managers handle day-to-day situations, you're already behind.
As someone who works with small businesses every day, I can tell you that most owners don't realise how much has shifted until something goes wrong.
Here's a clear breakdown of what's happened so far and what you need to prepare for.
What landed in April 2026
These changes are already live. If your documentation hasn't been updated, you're operating with a gap between what the law expects and what your business actually does.
Some of the most significant updates include Statutory Sick Pay now being payable from day one of absence, with no lower earnings limit. That alone will affect how you budget for sickness absence and what your contracts say about sick pay entitlements.
Paternity leave and unpaid parental leave are also now available from day one of employment. Previously, employees needed qualifying service before they could access these. That's gone. Alongside this, a new right to Bereaved Partner's Paternity Leave has been introduced.
Whistleblowing protections have been strengthened too, with specific provisions now covering disclosures linked to sexual harassment. The Fair Work Agency has been established, and there have been updates to menopause and gender equality guidance, plus changes to how trade union recognition works.
Collective redundancy protective awards have been extended to up to six months' pay. If you're planning any kind of restructure, that's a number worth knowing.
What does all of this mean in practice? You'll want to look at your sickness policies, your family leave arrangements, and how your managers are trained to handle these situations. A lot of businesses are still relying on handbooks and contracts that were written years ago. The inconsistencies tend to surface at the worst possible time.
The July 2026 deadline you can't afford to miss
From 1 July 2026, any new employee you take on will gain unfair dismissal protection after just six months of service. The full effect of this kicks in from January 2027.
That's a massive shift from the previous two-year qualifying period.
Think about what that means for your hiring process. If someone isn't right for the role, you now have a much shorter window to identify it, document it and act on it. Probation periods that aren't properly structured become a real liability. Performance concerns that go unrecorded leave you exposed.
The commercial risk increases when:
➡️ Probation reviews are skipped or treated as a tick-box exercise
➡️Underperformance is dealt with through informal chats that nobody writes down
➡️Dismissal decisions are made without a clear paper trail
➡️ Managers wait too long before raising concerns
Getting your recruitment, onboarding and early-stage performance management right has never been more important. If you're bringing someone into your business after July 2026, you need a proper framework in place from their first day.
October 2026 brings a focus on prevention
The next wave of changes arrives in October 2026, and the theme here is about what you're doing to stop problems before they happen.
A new duty to prevent sexual harassment comes into effect, and it extends to cover some forms of third-party harassment. You'll need to show that you've taken reasonable steps to protect your employees. Having a policy on paper won't be enough on its own. Training, clear reporting routes and proper communication all matter.
Employers will also be required to tell employees about their right to join a trade union, and trade unions will have stronger access rights. Tipping rules are being tightened, and there's a Fair Pay Agreement body being set up for Adult Social Care.
For your business, this means reviewing your onboarding materials and making sure your managers know what's expected of them. Internal reporting processes need to be clear and accessible. The emphasis is firmly on being able to demonstrate that you've done the work upfront.
2027 and the biggest operational changes
The reforms scheduled for 2027 will have the largest day-to-day impact on how you run your business.
The six-month unfair dismissal qualifying period becomes formally embedded. But beyond that, there's the potential for uncapped compensatory awards at tribunal. That changes the financial stakes considerably for any dismissal that isn't handled properly.
Zero hours contracts are being reformed. If you use them, you'll need to think about guaranteed hours and shift compensation. Fire and rehire will become automatically unfair in most circumstances, so if you've ever considered changing terms by dismissing and re-engaging staff, that route is largely closing.
Pregnant employees and new mothers will receive enhanced protections. Flexible working rights are changing. A statutory right to bereavement leave is being introduced, covering pregnancy loss as well. Umbrella companies will face new regulation.
These changes will directly affect how you plan your workforce, how you manage conduct and capability issues, how you schedule working hours, and how you approach any kind of restructure or contractual change. If you've been managing people informally or reacting to issues as they come up, the risk attached to that approach goes up significantly from 2027.
Questions worth asking yourself now
Before the next set of deadlines arrives, it's worth taking a step back and thinking about where your business stands. Here are some questions to consider:
➡️ When were your employment contracts and employee handbook last reviewed against current legislation?
➡️ Do your managers know how to run a structured probation review and document performance concerns properly?
➡️ Could you demonstrate to a tribunal that you've taken reasonable steps to prevent harassment in your workplace?
➡️ Are your sickness absence and family leave policies reflecting the new day one entitlements?
➡️ If you needed to restructure or change someone's contract, do you have a clear process to follow?
If you're unsure about any of these, that's a sign it's time to get some support. HR consultancy services in Milton Keynes don't have to mean expensive retainers or complicated arrangements. Sometimes it starts with a simple conversation about where the gaps are.
A sensible place to start
I offer a free, short impact assessment to help you work out which of these changes affect your business, what needs updating, where your financial or operational risk might be increasing, and what to focus on first.
As an outsourced HR consultant in Milton Keynes working across the UK, I work with small and medium-sized businesses to take HR off your plate so you can get on with running your company. If any of this has raised questions, get in touch for a confidential chat and we'll look at what applies to you and what needs to happen next.
Please do reach out 📱 0781 3084152 or email 📧 daxa@hrresultsltd.co.uk Taking your HR from 'to do' to 'done'.
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