The biggest shake‑up to employment law in a generation is underway. Some Employment Rights Act reforms came into force in April 2026, with further changes rolling out later this year and into 2027.
At GFHR Consulting, we help businesses make sense of change without panic or guesswork. Below, we’ve mapped the reforms into clear milestones so you can see:
- what is already live
- what’s coming next
- where action is needed now to reduce risk later
Milestone 1: Changes already in force (April 2026)
These reforms are now law. If your policies, contracts or manager guidance haven’t been updated, this is where exposure often begins.
What’s changed
- Day 1 entitlement to:
- Paternity leave
- Unpaid parental leave
- New bereaved partner’s paternity leave
- Statutory Sick Pay from day one, with no lower earnings threshold
- Collective redundancy protective awards extended to up to six months’ pay
- Stronger whistleblowing protection, including disclosures linked to sexual harassment
- A simplified trade union recognition process
- Creation of the Fair Work Agency
- Updated guidance on menopause and gender equality
What this means in practice
Most organisations need to review and refresh:
- employment contracts and core policies
- sickness absence and family leave arrangements
- manager capability around consultations, investigations and protected disclosures
- overall compliance confidence
We’re seeing many businesses still relying on documents written years ago — this is often where inconsistencies start to surface.
Milestone 2: Preparing now for six‑month dismissal rights (from 1 July 2026)
From 1 July 2026, new starters will gain unfair dismissal protection after six months’ service. The right becomes fully operational from January 2027.
Why this is a major shift
A shorter qualifying period significantly increases risk where:
- probation periods are loosely managed
- performance concerns aren’t documented
- dismissals are rushed or handled informally
- decisions are delayed until it’s “too late”
What businesses need to do differently
Early people management now matters more than ever.
Strong recruitment decisions, structured onboarding, timely feedback and clear probation reviews will be your first line of protection — not last‑minute processes.
Milestone 3: Further reforms arriving in October 2026
This phase places a clear focus on prevention, fairness and transparency.
Key developments
- A new legal duty to prevent sexual harassment, including some third‑party harassment
- Requirement to inform employees of their right to join a trade union
- Expanded trade union access rights
- Introduction of a Fair Pay Agreement body for Adult Social Care
- Stricter tipping rules
- Additional reforms to recognition processes
What employers should be strengthening now
- harassment prevention measures and reporting routes
- manager and team training
- onboarding content and workplace communications
This milestone is about being able to show you’ve taken reasonable, proactive steps — not just reacting after something goes wrong.
Milestone 4: The biggest changes land in 2027
These reforms will have the most significant operational and financial impact, particularly for small and growing businesses.
What’s coming
- Unfair dismissal qualifying period formally reduced to six months
- Potential for uncapped compensatory awards
- Stronger protection for pregnant employees and new mothers
- Changes to flexible working rights
- Introduction of statutory bereavement leave, including pregnancy loss
- Ending exploitative zero‑hours practices (guaranteed hours and shift compensation)
- Regulation of umbrella companies
- “Fire and rehire” becoming automatically unfair in most situations
Why this matters
These changes affect:
- workforce planning and cost control
- how underperformance and conduct are managed
- scheduling, guaranteed hours and contract design
- restructures and contractual change programmes
By this stage, informal or reactive people management will carry far greater risk.
A practical next step
To help employers prepare sensibly — without overhauling everything at once weoffer a free risk assessment to helps you identify:
- which changes apply to your business
- what needs updating now
- where financial or operational risk may increase
- what to prioritise next
If you’d like a confidential conversation about what these reforms mean for you, get in touch. We’ll help you cut through the noise and focus on what genuinely matters for your organisation.