Employment Rights Act changes: What employers need to prepare for
Employers should be aware of a series of changes being introduced under the Employment Rights Act, with reforms being phased in throughout 2026 and into 2027.
The changes form part of a wider programme aimed at strengthening employee rights and modernising workplace protections.
A broader shift in the employment landscape
The reforms reflect an evolving employment environment, with greater emphasis on employee protection, transparency and fairness.
While many of the individual changes may appear incremental, collectively they represent a meaningful shift in how employment relationships are structured and managed.
Key changes include:
- Day-one rights for paternity leave and unpaid parental leave
- Reforms to Statutory Sick Pay eligibility
- Strengthened protections for whistleblowers
- Changes to tipping practices in certain sectors
- A reduction in the qualifying period for unfair dismissal claims (expected from 2027)
What this means in practice
For employers, these changes will require a review of existing policies, procedures and employment contracts.
In practical terms, this may involve:
- Updating employee handbooks and policies
- Reviewing onboarding processes to reflect day-one rights
- Ensuring payroll systems can accommodate changes to statutory payments
- Training managers on updated employee rights and obligations
While some changes are administrative, others may affect how businesses manage risk, particularly in relation to dismissal and employee relations.
Managing risk in a changing environment
As employee rights expand, the potential for disputes or claims may increase if processes are not aligned with the new framework.
This places greater importance on:
- Clear documentation
- Consistent processes
- Proactive communication with employees
For growing businesses in particular, ensuring that internal processes keep pace with legislative change will be key.
A joined-up approach to people and compliance
These changes highlight the increasing overlap between HR, payroll and business advisory.
At Ward Williams, we support employers not only with payroll compliance, but also with the wider implications of legislative change, helping businesses align their processes with both regulatory requirements and commercial objectives.
Frequently asked questions
What is changing?
A range of employment law reforms are being introduced across 2026 and 2027.
Who is affected?
All employers, regardless of size.
Are the changes happening all at once?
No, they are being phased in over time.
Do I need to update my policies?
In most cases, yes — particularly where rights apply from day one of employment.
Will this increase employer obligations?
Yes, particularly in relation to employee rights and protections.
Does this increase the risk of claims?
Potentially, if processes are not updated to reflect the new rules.
As employment legislation evolves, keeping policies and processes aligned will be essential to managing both compliance and risk.
If you would like support reviewing how these changes affect your business, please get in touch.
Call 01932 830664, email enquiries@wardwilliams.co.uk or visit www.wardwilliams.co.uk to speak with a member of the team.
