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News
06 Mar 2026
by Gray Gibson

New Employee Rights from April

Changes have been announced over a two year period. In this article, NFRC explains employer responsibilities and the framework

The Employment Rights Act, which gained royal assent late last year, is introducing significant reforms to employment law over the next two years. NFRC encourages all Members to ensure they are aware of the timeline for upcoming changes to ensure compliance where appropriate.  

The changes broadly fall into three categories; 

  • New rights and protections for workers  
  • Fair pay, terms and working conditions  
  • Enforcement and trade unions 

From April 2026, the next set of changes will come into effect. The changes will impact businesses in different ways depending on their size. Some of the upcoming changes include; 

  • Employees will be entitled to Statutory Sick Pay from the first day of illness, instead of the fourth day, and the lower earnings limit will be removed. 
  • Paternity leave and unpaid parental leave will also become a 'day one’ right, and the restriction on taking paternity leave after shared parental leave will be removed. 
  • Sexual harassment will become a protected disclosure under whistleblowing law, meaning that employees making a sexual harassment disclosure will be protected from unfair dismissal. 
  • The maximum 'protective award' for failure to meet collective redundancy consultation obligations will double from 90 days' pay to 180 days' pay. 
  • Large employers will need to publish Equality Action Plans to address their gender pay gap and support employees affected by the menopause. These will be voluntary from 6 April 2026 and mandatory from spring 2027. 

Further changes will take effect in October and later in 2027. We recommend Members familiarise themselves with the upcoming changes to ensure their business is ready.  

Some of the notable reforms coming into effect in October 2026 include: 

Stronger sexual harassment prevention duty 

  • Employers must take “all reasonable steps” to prevent sexual harassment. 

  • Includes protection from third-party harassment (e.g., clients or customers). 

Obligation to inform workers of their right to join a trade union 

  • Employers must ensure workers know this right. 

Extended protections against detriment for industrial action 

  • Additional protections for workers participating in lawful industrial action. 

Some of the most significant reforms are expected to come into effect in January 2027, including: 

Unfair dismissal qualifying period reduced 

  • Eligibility to claim unfair dismissal reduced from 2 years to 6 months. 

Removal of cap on unfair dismissal compensation 

  • Potential tribunal compensation becomes uncapped 

“Fire and rehire” restrictions 

  • New legal protections restricting dismissal and re-engagement practices. 

Government continues to consult on various aspects of the Make Work Pay Plan, including; 

Modernising the Agency Work Regulatory Framework 

Improving access to flexible working 

If you have thoughts on these topics you wish to share, contact [email protected] 

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