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2026 Employment Law changes, and advice for employers

By Amelia Waters, Employment Law and Dispute Resolution – Solicitor, Ralli Solicitors LLP

 

Employment law in the UK continues to change, and 2026 will bring a number of important reforms for employers. While the volume of change can feel challenging, with the right preparation businesses can approach the year ahead with confidence and clarity.

Below, we outline the key employment law developments expected in 2026, explain what they mean in practice, and highlight how employers can put sensible steps in place now to stay compliant and well prepared.

 

Employer liability for workplace harassment including third-party harassment

Employers will face stronger legal duties to prevent harassment in the workplace. The standard will move from taking “reasonable steps” to taking “all reasonable steps” to prevent sexual harassment.

Liability will also extend to harassment carried out by third parties, including clients, customers and contractors, unless employers can demonstrate they have taken all reasonable steps to prevent such conduct. This will apply to all forms of harassment and is a positive move from the government to help emphasise that a reactive approach will no longer be sufficient.

Furthermore, failings in training, policy implementation or dealing with third-party behaviour may expose employers to significant claims.

 

How employers can prepare for workplace harassment changes

  • Review and strengthen anti-harassment policies and training programmes.
  • Ensure policies clearly address third-party conduct.
  • Put robust reporting and response mechanisms in place and communicate them effectively.

 

New whistleblowing protections including sexual harassment disclosures

Whistleblowing law is also set to expand in 2026. The scope of protected disclosures will be widened, and safeguards against retaliation strengthened. Notably, disclosures relating to sexual harassment will qualify for whistleblowing protection.

This means individuals raising such concerns will be protected from detriment and unfair dismissal, increasing the stakes for employers handling complaints.

These changes matter for employers because whistleblowing claims often involve complex issues and substantial exposure, and mishandling disclosures can result in serious legal and reputational consequences.

 

What do employers need to do to prepare for changes to whistleblowing protections?

  • Update whistleblowing policies and reporting channels.
  • Train managers on handling disclosures appropriately.
  • Ensure confidentiality is maintained and retaliation is prevented.

 

Collective redundancy consultation changes and increased protective awards

Redundancy exercises and workforce restructures will carry increased risk for employers in 2026 as changes to collective consultation rules come into force. The maximum protective award for a failure to comply with collective consultation obligations will double, increasing from 90 days’ pay to 180 days’ pay per affected employee.

Collective consultation obligations are often triggered earlier than employers expect and can apply across connected entities, particularly where roles are being reduced across different sites or departments. Employers will need to carefully assess whether proposals amount to 20 or more redundancies within a 90-day period and ensure consultation begins at the correct point.

Failure to consult properly, or consulting too late, can result in significant financial exposure even where redundancies are otherwise justified.

 

How can employers avoid the financial risks under the new redundancy consultation changes?

Collective consultation disputes are often complex, time-consuming and already can be costly to defend. Errors around timing, information sharing or identifying the correct employee pool will now lead to further claims regardless of the underlying business rationale, and the increase in protective awards will substantially raise the cost of getting the process wrong. Therefore it is crucial that employers follow the guidelines below to minimise risk:

  • Review redundancy and restructuring policies to ensure they reflect current consultation obligations.
  • Carry out early headcount and pooling assessments where change is being considered.
  • Build consultation planning into restructuring timelines from the outset.
  • Keep clear records of decision-making and communications with affected employees.

 

Employment tribunal delays and extended time limits for bringing claims

The employment tribunal system is already under considerable strain, with growing backlogs and extended waiting times. From October 2026, the time limit for bringing most employment claims will increase from three months to six months.

This is likely to lead to longer periods of uncertainty for employers, increased legal costs and extended demands on internal resources.

Employers can prepare for these changes effectively by:

  • Maintaining detailed and accurate records.
  • Preserve relevant documents at the earliest sign of a dispute.
  • Consider alternative dispute resolution where appropriate.
  • Preparing early will be essential in defending claims.

 

Day one employment rights from April 2026 including paternity leave, statutory sick pay and unfair dismissal 6-months rights from January 2027

Proposals to make ordinary unfair dismissal a day one right have been amended during the passage of the Employment Rights Bill. Rather than removing the qualifying period entirely, the current position is that the qualifying period for ordinary unfair dismissal will be reduced from two years’ service to six months. This change is expected to take effect once the legislation is implemented, likely from 1st January 2027.

However, a number of statutory rights will apply from day one from April 2026, including paternity leave, which will become a day one entitlement, removing the existing 26‑week service requirement. Restrictions on taking paternity leave following shared parental leave will also be lifted, increasing flexibility for employees.

Statutory Sick Pay will also change from April 2026. SSP will be payable from the first day of sickness rather than the fourth, and the lower earnings limit will be removed, bringing more workers within scope.

 

Why changes to unfair dismissal qualifying periods and day one rights matter for employers

A shorter qualifying period means employers will have less time to address performance or conduct concerns before unfair dismissal rights arise.

Poorly documented or procedurally weak dismissals within the first six months of employment may still give rise to claims.

Changes to paternity leave and SSP are likely to increase take‑up and have resourcing and cost implications.

 

How employers can prepare for the new day one rights

  • Review probationary procedures and ensure they are robust and consistently applied.
  • Train managers on fair process and record‑keeping from the start of employment.
  • Update contracts and policies to reflect changes to statutory rights.

 

Ralli Solicitors LLP are here to support employers prepare for 2026 Employment Law changes

The employment law changes coming into force in 2026 will have a direct and practical impact on how employers manage their workforce. Taking steps now to review policies, train managers and strengthen internal processes can significantly reduce the risk of disputes and unexpected costs.

If you would like advice on how these upcoming reforms may affect your organisation, or support with preparing for the changes ahead, our employment team can help.

You can contact Mark Higgins, Employment Law Partner, or Amelia Waters, Employment Law & Dispute Resolution Solicitor, for tailored advice on what these changes mean for your business. Call 0161 832 6131 or email enquiries@ralli.co.uk.

 

DISCLAIMER: Please note that this post is an opinion piece by Ralli Solicitors LLP. Any reference to law sets out the general position under the general law which is yet to be passed and based on information from Gov.uk announced here.

This blog should not be acted upon in any specific circumstances without taking specific legal advice. Also, it should not be relied upon, acted upon or treated as a substitute for specific advice relevant to particular circumstances. If you do require specific advice, please contact us for assistance.