The Employment Rights Act 2025 introduces a staged programme of reform that will progressively rebalance power in the workplace over the next two years. The first phase, taking effect between February and April 2026, concentrates on trade union activity, industrial action, and core employment protections. These changes will affect how employers manage disputes, respond to absence, and plan organisational change.

This article outlines the February to April reforms only. Later changes will follow in separate guidance.

Trade Unions

Trade unions enable employees to organise, raise issues, negotiate with employers, and take collective action around pay, working conditions, and workplace change. The rules governing recognition set out how a union gains the right to represent employees. From February to April 2026, the recognition process becomes simpler and more likely to move at pace.

Key changes include:

• Removal of the 40% approval requirement for public sector ballots.
• In some cases, only 10% of employees in a proposed bargaining unit will be needed to trigger a statutory recognition process (instead of a majority vote).
• Union recognition can be achieved by a simple majority, without turnout thresholds.
• Employers must agree workplace access arrangements once a recognition application has been accepted (rather than when the ballot is ordered).
• The requirement for employees to opt in to union political funds is removed, which means, by default, subscription costs will be used to fund political activities.

What this means in practice

Unions will find it easier to establish and maintain a presence in workplaces. Employers may see recognition requests earlier, with fewer opportunities to slow the process down. Union engagement may move from informal to formal more quickly than expected.

How to prepare

• Treat union interest as a business issue, not an informal discussion. It will become easier for employees to gain trade union representation.
• Ensure staff know to escalate any approach from a union, or signs of coordinated employee interest, early to HR or senior management.
• Avoid giving informal assurances or refusals about access, facilities, or recognition, as these may cut across new legal requirements.
• Assume recognition requests may progress faster and with less notice than what you’ve experienced in the past.
• Ensure managers understand that their response to early union activity may be scrutinised later in the process.

Industrial action

Industrial action includes strikes and other coordinated actions by employees. From February 2026, several reforms will shorten timelines and broaden the scope for action.

The key changes are:

• The notice period for industrial action reduces from 14 days to 10 days.
• Ballot mandates last 12 months, allowing action to be repeated without a fresh vote.
• Unions can run electronic, hybrid, or workplace ballots.
• The role of picket supervision is removed, and supervisors will no longer be required.
• Protections against dismissal or disadvantage linked to industrial action are strengthened, including the removal of the long-stop limit on unfair dismissal protection.

What this means in practice

Industrial action will move from warning to reality more quickly. With only 10 days’ notice and longer-lasting ballot mandates, employers may have less time to prepare, and repeated or rolling action may be easier to organise. Managerial decisions made early in a dispute will face scrutiny, particularly where they affect employees participating in action. Decisions about resourcing, communications, and employee relations will need to be made faster and with greater care.

The possibility for missteps is significantly increased. Actions that may have been seen as squarely within the purview of management, such as changing duties or restricting overtime are more likely to be challenged if they can be linked to participation in industrial action.

Once industrial action is on the table, the risk profile shifts immediately.

How to prepare

• Treat any mention of industrial action as urgent.
• Escalate immediately to HR or senior leadership.
• Avoid actions that could be seen as pressure, punishment, or retaliation.
• Prepare communications and resourcing plans earlier in the process.

Family leave

Family leave covers time off for events such as the birth of a child or caring responsibilities. From April 2026, the following become day-one employment rights:

• Paternity leave.
• Unpaid parental leave.
• Bereaved partner’s paternity leave.

The minimum service requirement for these rights has been removed.

What this means in practice

New starters, including those in probation, are eligible for more types of leave immediately. Employers can no longer rely on service thresholds to manage or delay absence. For roles that are operational, customer-facing, or hard to backfill, this increases short-term resourcing pressure.

How to prepare

• Update family leave policies to remove service-based eligibility
• Continue to distinguish between statutory and enhanced pay provisions, which can still be linked to service.
• Include Bereaved Partner’s Paternity Leave within existing family leave policies.
• Plan cover on the basis that leave may be taken early, including during probation.
• Handle requests promptly and consistently.
• Ensure payroll and HR systems can process leave correctly from day-one.

Sick pay

Statutory sick pay (SSP) is the minimum pay employers must provide when an employee is off work due to illness. From April 2026:

• SSP must be paid from the first day of sickness, rather than day four.
• The lower earnings limit is removed, meaning more workers qualify for SSP.
• SSP will be paid at 80% of normal weekly earnings, capped at the statutory rate.

What this means in practice

Absences that previously attracted no payment will now incur cost, and a wider group of workers will qualify for SSP. Consistency in absence management will become more important. Patterns of short or intermittent absence may become more visible once all absences enter the system from day one. Accurate reporting, early contact, and clear expectations will play a greater role in managing long-term or repeated absence.

How to prepare

• Ensure payroll and HR systems are ready to apply sick pay from day one of absence.
• Update performance management procedures to address repeated short absences early.
• Follow sickness reporting and evidence rules consistently, regardless of length of service.
• Make sure managers understand the self-certification period, when medical evidence can be requested, and how to handle health conversations and data sensitively and consistently.
• Keep clear records of absence, return-to-work discussions, and any agreed adjustments.

Collective consultation

Collective consultation rules apply where an employer proposes to make 20 or more employees redundant at one establishment within a 90-day period. A protective award is compensation paid when consultation duties are not met. From April 2026, the maximum protective award doubles from 90 days’ to 180 days’ pay per affected employee.

What this means in practice

The financial risk associated with procedural errors increases significantly. In practice, protective awards are based on whether consultation was meaningful and properly timed, not on the validity of the business case for redundancy. Consultation that starts too late, is rushed, or is treated as a formality may create considerable exposure.

How to prepare

• Involve HR early in any restructuring discussion, before proposals are finalised or communicated.
• Follow consultation steps carefully and on time, ensuring there is sufficient time for meaningful consultation.
• Keep clear records of what was discussed, when, and how employee input was considered.

Whistleblowing

Whistleblowing protections apply when concerns about certain types of wrongdoing in the workplace are raised in the public interest. This can include issues such as unlawful activity, health and safety risks, or failures to comply with legal obligations. Workers who make a protected disclosure are legally protected from retaliation or disadvantage as a result. From April 2026, sexual harassment complaints will be expressly treated as protected whistleblowing disclosures, bringing them clearly within this framework.

What this means in practice

More complaints will carry immediate legal protection. Handling will be closely scrutinised, particularly where delays, tone, or changes to duties could be interpreted as disadvantage. Issues that might previously have been treated as grievances or conduct matters may now fall within whistleblowing protection, particularly where a complaint raises concerns about systemic behaviour, management failure, or legal compliance.

For managers, the risk is often not the complaint itself, but what happens next. Delays, defensive reactions, informal comments, or changes to duties or relationships following a complaint are more likely to be scrutinised and challenged. The focus therefore needs to be on how complaints are handled, not just whether they are upheld. Early escalation, careful communication, and clear records will matter more than ever.

How to prepare

• Treat harassment complaints as protected concerns from the outset, regardless of how informally they are raised.
• Avoid any action that could be seen as punishment or disadvantage, including changes to duties, tone, or working relationships.
• Escalate concerns promptly and follow internal processes rather than attempting to resolve matters informally.
• Keep clear records of how complaints are handled, including decisions made and reasons given.
• Train managers on how to manage complaints.

Employer reporting

From April 2026, employers with 250 or more employees will be encouraged to publish action plans addressing gender pay gaps and menopause support. Mandatory requirements are expected in 2027.

What this means in practice

Although reporting is voluntary, expectations are being set, and scrutiny is increasing. These action plans will indicate how employers identify issues, prioritising interventions, and track progress over time. The plans are expected to set out evidence-based actions to improve gender equality and support employees experiencing menopause. Once published, they are likely to be scrutinised by employees, regulators, and the wider market.

How to prepare

• Ensure workforce data is accurate, up to date, and accessible.
• Be prepared to explain how policies operate in practice, not just on paper.
• Expect greater oversight and external scrutiny of employment practices.

Fair Work Agency

The new body known as a Fair Work Agency will be established in April 2026. It will bring existing enforcement functions together and take a more proactive approach to monitor compliance with core employment standards, including pay, holiday entitlement, sick pay, and other basic rights.

The Fair Work Agency is designed to be more proactive. Until now, enforcement has largely relied on individuals raising complaints, but now it will be able to investigate employers where patterns of non-compliance are identified.

What this means in practice

Employers may experience greater oversight and consistency checks of everyday practices that previously received limited attention. informal or inconsistent approaches may attract scrutiny if they fall outside legal requirements. For HR teams and managers, this increases the importance of getting everyday decisions right, particularly around pay, sickness absence, and leave.

How to prepare

• Assume enforcement may be proactive rather than complaint-led.
• Apply pay, sick pay, and leave rules consistently.
• Address known issues rather than relying on the absence of complaints.
• Keep clear records showing how decisions are made.

Closing note

These early reforms mark a shift towards more active enforcement, earlier eligibility for key rights, and faster movement in collective disputes. For HR teams and managers, the priority is adjusting behaviours now to support smoother implementation as further phases of the Employment Rights Act 2025 come into effect over the next two years.

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