UK Employment Law Overhaul: Unfair Dismissal Period Cut, Union Rights Boosted

September 1, 2026
UK Employment Law Overhaul: Unfair Dismissal Period Cut, Union Rights Boosted
  • The UK’s Employment Rights Act reforms roll out in phases, beginning with an extension of tribunal claim time limits from three to six months on 1 October, while other measures on trade unions and anti-harassment duties are slated for 30 October.

  • Follow-on dates to watch include 30 October 2026 for expanded sexual harassment and union protections, January 2027 for changes to unfair dismissal protections tied to qualifying periods, and 2027 for broader reforms on pregnant workers, flexible working, bereavement leave, and NDA reforms.

  • Collective redundancy rules will tighten with a higher organizational threshold and central oversight for multi-site employers, pushing for coherent treatment of redundancies across locations.

  • A guaranteed hours duty will require offering qualifying zero-hours and minimum-hours workers a guaranteed hours contract, with extensions to agency workers and a targeted implementation around 2027.

  • Flexible working reforms will require employers to prove refusals are reasonable and backed by operational evidence, with updated policies and manager training to assess requests consistently.

  • From January 2027, dismissing employees for resisting contractual changes will generally be automatically unfair, with narrow exceptions for severe financial hardship and a need for early consultation and strong business cases.

  • The Life Sciences team will host a webinar on AI governance and an in-person London AI Forum to explore UK/EU regulatory landscapes, governance responses, and the challenges of launching AI-powered products.

  • A new collective redundancy consultation trigger is being considered, potentially replacing the current 20+ redundancies at one establishment with a broader, company-wide threshold in 2027, alongside tougher penalties for failing to consult.

  • A day-one right to unpaid bereavement leave is anticipated, with forthcoming guidance on unpaid carers and seriously ill children and required policy reviews to operationalize entitlements.

  • The right to request flexible working will extend to day one, with a reasonable-refusal standard and regulatory processes expected to take effect in 2027.

  • Employers are advised to focus on three priorities: review contracts/policies/procedures and data, budget for changes and potential tribunal exposure, and strengthen manager capability to ensure timely, fair, well-evidenced decisions.

  • The Fair Work Agency, launched in 2026, will expand enforcement on minimum wage, agency worker protections, and holiday pay, increasing scrutiny of payroll, attendance data, and potential use of workplace monitoring technology.

Summary based on 4 sources


Get a daily email with more UK News stories

Sources

Employment Rights Act changes: what you need to know

More Stories