The Employment Right Bill is getting closer by the day. This landmark act will bring big changes and updates to UK employment law, starting in 2026. While it will take until 2027 for all changes to come into effect, there will be a number of laws in 2026 that you and your business need to start preparing for:
April 2026
Day One Statutory Sick Pay (SSP)
From April 2026, employees will be entitled to statutory sick pay from the first day of their illness leave- there will no longer be a three day waiting period before they are entitled to the pay. This will come with extra payroll costs for your business, so it’s important to prepare for this now.
Day One Parental Leave
Employees will be entitled to take parental leave from their first day of employment in a job, removing the previous continuous service requirements. It is important to note that the change in legislation only affects rights to leave, not to pay.
Launch of Fair Work Agency
The Fair Work Agency will be the dedicated enforcement body for the Employment Rights Bill. The agency will have the power to inspect hospitality businesses across the UK to ensure that they’re staying compliant with the Bill, and apply any relevant penalties.
October 2026
Fire and Re-hire
In October 2026, The Employment Rights Bill will put a stop to fire and re-hire practises, whereby employers fire their employees to rehire them with new (often worse) terms of employment/contracts.
Extended Tribunal Claim Time Limits
Currently, employees have three months to file claims in Employment Tribunals. The Employment Rights Bill will increase this timeframe to six months in most cases.
Tip Allocation Rules
The Employment Rights Bill will tighten existing tipping legislation, requiring employers to consult their staff before creating a tipping policy and to re-consult with their team at least every three years. For more information on tipping legislation, see here.
