Trade Unions

The minimum service levels required in the fields of health, transport, education, fire and rescue and other important services cease to apply.

Industrial Action Ballots and industrial action dismissal protection

The support threshold of 40% of those entitled to vote voting in favour of industrial action has been removed. The 50% turnout threshold remains until at least August 2026.

Employers must also not dismiss employees because they take protected industrial action. Any dismissal or disciplinary action of striking employees should be escalated for HR/legal review before action is taken.

Day-one rights to family leave

Paternity leave and parental leave available from day one. Pay will require qualifying service.

Trade Union Recognition

The rules on trade union recognition will be simplified in order to make it easier for trade unions to get recognition.

Sexual harassment and protected disclosures

The definition of a protected disclosure will include a disclosure that sexual harassment has occurred, is occurring or is likely to occur.

Collective redundancy consultation

Compensation for failure to collectively consult will be increased from 90 days to 180 days’ gross pay.

Voluntary gender equality / menopause actions plans

Employers can voluntarily publish action plans on gender equality and menopause support. Larger employers should consider preparing now, as mandatory action plans are expected in 2027.

Holiday records

Employers must keep adequate records of annual leave and holiday pay compliance for 6 years. Payroll, HRIS and holiday recording processes should be checked.

Bereaved Partners’ Paternity Leave

Bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life. This is a non-Make Work Pay measure, which means it’s not been introduced by the Employment Rights Act, but a separate piece of legislation.

Statutory Sick Pay (SSP) Reform

Statutory Sick Pay will be reformed, meaning:

1. It starts from day one of absence
2. The earnings threshold is removed
3. A tapered rate for low earners will be introduced

This will increase early-stage absence costs for organisations that currently rely on the minimum statutory threshold and three-day waiting period.

Fair Work Agency

Established to deal with enforcement functions previously carried out by HMRC and other government agencies. It will be given a number of powers including compelling individuals to attend meetings, entering premises to inspect documents and bringing claims on behalf of employees.

Statutory Trade Union Recognition electronic balloting

Statutory balloting for trade unions may be carried out using electronic balloting as opposed to postal or workplace balloting. Recognition/derecognition e-balloting is expected in 2027.

Unfair dismissal rights after six months

Unfair dismissal rights will start after six months’ service. The original proposal was for this to be a day one right, but the government announced a change in approach on 27 November 2025. The cap on compensatory awards will also be removed.

Dismissal and re-engagement (fire and rehire)

New right to a statement of trade union rights and a trade union right of access. Trade union officials and learning representatives are also set to gain rights to facilities and time off.

Employers should ensure managers do not subject workers to detriment for taking industrial action, such as reduced hours, lost opportunities, unfavourable shift allocation or other disadvantage.

Zero-hours and irregular hours contracts

New duty to offer guaranteed/minimum hours contracts to zero hours workers, those on minimum hours contracts and agency workers based on average hours worked in previous reference period (likely to be 12 weeks). New right to compensation where shifts are cancelled or postponed at short notice or where the employee refuses a shift because the employer has not provided reasonable notice.

Dismissals during pregnancy or family related leave

Stronger protection against dismissal for women who are pregnant and for those who are taking or returning from a period of statutory family leave.

Collective redundancy threshold reform

Employers should prepare for collective consultation triggers to be assessed across the organisation, not only at one workplace.

Bereavement leave

Extended to cover a wider class of family members with whom the leave may be associated.

Flexible working requests

You can only refuse a flexible working request on one or more of the statutory grounds if it is reasonable to do so.

Ban on non-disclosure agreements covering harassment and discrimination at work

Any confidentiality clauses in agreements between an employer and a worker (e.g. a settlement agreement) which prevents a worker from making allegations about harassment or discrimination will be void.