LDL Boutique Employment Law Practice
May 2026 · Issue #2

Employment Rights
Act 2025

Your essential guide to the changes and what you need to do to stay compliant.

In April 2026, the draft Code of Practice on the right of trade unions to access workplaces was published. Part 1 of this briefing focuses on these new rights of access, due to come into effect in October 2026.

This right applies to all employers with 21 or more workers irrespective of whether or not an employer has ever interacted with a trade union or recognises a trade union. The penalties for non-compliance are significant — up to £500,000 for repeated breaches, so it is essential to understand your obligations.

A reminder of the changes to unfair dismissal coming into force on 1 January 2027 and the practical steps that can be taken to minimise claims risks is set out at part 2.

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The 2025 Act provides trade unions with the right to access workplaces physically or digitally. The practical detail is contained within the draft Code of Practice which was published in April 2026 and is available here.

Scope of the right

From October 2026, trade unions will have a right to access your workplace for specified purposes: to "meet, support, represent, recruit or organise workers (whether or not they are members of a trade union)" and/or "to facilitate collective bargaining".

The standard frequency of access is weekly and should take place during normal working hours, with an obligation on an employer to ensure the privacy of meetings.

An independent tribunal, the Central Arbitration Committee (‘CAC’), will oversee the new arrangements and can compel an employer to permit access, and impose penalties for non-compliance.

Although the right applies irrespective of whether or not the employer recognises a union, it is less likely that an employer who recognises a union will be compelled to permit access if the access request is made by a trade union that represents one or more of the workers that are subject to this request.

How will this work in practice?

The Code provides that stage 1 is for a union to seek to agree terms of access with an employer on a voluntary basis.

If this is not achieved, a union can then submit an access request to the employer using the standard ‘request for access’ form appended to the Code.

Once received, an employer has 15 working days to respond, and the Code sets out a standard response form for employer to use.

The parties have 25 working days from the end of the response period to reach agreement on an access agreement. If an agreement is reached, this should be sent to the CAC for recording.

What happens if we can’t reach agreement on the terms of an access agreement?

If negotiations are unsuccessful, either the employer or the union can apply to the CAC and the CAC will determine the access rights.

What are the penalties for compliance?

A union can submit a complaint to the CAC alleging non-compliance. The CAC does not have the power to impose a financial penalty in respect of a first complaint. The CAC has the power to amend the access agreement or issue an order requiring certain steps to be taken.

If there is a further breach, the union can then apply to the CAC and, if the complaint is well-founded, a penalty of up to £75,000 can be imposed by the CAC at that stage. If there is a second breach, the maximum penalty increases to £150,000, with a maximum penalty of up to £500,000 for any third or subsequent breach.

The qualifying period change

As detailed in briefing #1, the qualifying period to bring an unfair dismissal claim will reduce from just under two years to 6 months, effective from 1 January 2027.

Employees with at least 6 months’ service as at 1 January 2027 will be able to make a claim — service prior to January 2027 will count. This means that anyone starting employment on or prior to 1 July 2026 will qualify to bring an unfair dismissal claim on 1 January 2027.

Calculating the qualifying period

In calculating whether an employee has attained 6 months’ service, statutory notice (of one week for employees with more than a month but less than two years’ service) is always added on — so the qualifying service you should work to is 6 months less one week.

As an example, this means that an employee who commences employment with you on 1 August 2026 will accrue the right to claim unfair dismissal on 24 January 2027 (not 31 January).

Contractual notice is not relevant in calculating the qualifying period, unless an employer asks an employee to work out their contractual notice period and this brings them to or beyond the qualifying period. In most cases, employment can be terminated with immediate effect and without notice, with a payment in lieu (or instead) of notice being made. A payment in lieu of notice does not operate to extend an employee’s period of service (save that the applicable statutory notice period is added on).

The cap on compensation for unfair dismissal, currently the lower of £123,543 or one year’s gross salary, will also be removed.

What you should be doing NOW to prepare
Action checklist
1 July 2026
Consider the terms of contracts of employment for new starts from 1 July 2026 and whether probationary periods should be shortened so decisions on these new hires are made before they accrue the right to claim.
Reduce probationary periods to 3 months (with maximum 2-month extensions)
Consider adjusting qualifying periods for benefits (e.g. life assurance, PMI, income protection) dependent on satisfactory probationary period completion
December 2026
Ensure decisions on retention of new hires are made well in advance of December 2026 (but only after consideration of the risk of any claims such as discrimination or whistleblowing that do not require any qualifying period of service).
LDL Boutique Employment Law Practice
March 2026 · Issue #1

Employment Rights
Act 2025

Your essential guide to the changes and what you need to do to stay compliant.

The Employment Rights Act 2025 became law in December 2025. The Act will be implemented in stages, with the key changes coming into effect between 6 April 2026 and Autumn 2027. The impact will be a new employment law landscape.

This briefing outlines the 6 April 2026 changes, future key changes, the impact on employment contracts and handbooks and provides a summary of the full government implementation timeline for all changes.

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Employment contracts
  • SSP payable from day one — no waiting days
  • Lower earnings limit (LEL) removed
  • New rate: lower of 80% AWE or £123.25/week
  • Remove all ‘waiting days’ and/or LEL contract references
HR policies & handbooks
  • Unpaid parental leave: day-one right
  • Paternity leave (not pay): day-one right
  • Whistleblowing: sexual harassment added as standalone ‘relevant failure’
  • Bereaved Partners’ Paternity Leave (up to 52 weeks)
  • Gender equality and menopause action plans (voluntary)
  • Menopause guidance issued
Other changes
  • Collective redundancy protective award doubled: 90 → 180 days (uncapped)
  • Trade union recognition process simplified
  • Fair Work Agency established (7 April)
October 2026 — Harassment rules

Employers will be required to take ‘all reasonable steps’ to prevent the sexual harassment of their employees, with the minimum requirements expected to be published in the course of 2027.

Protection from third party harassment will also apply — employers will be exposed to claims if employees are harassed by a third party in the course of their employment and they cannot show that they have taken all reasonable steps to prevent this. The obligation extends to all forms of harassment, not just sexual harassment.

What you should be doing to prepare
  • Conduct or amend risk assessments
  • Revise training materials to include the new requirements
  • Ensure appropriate measures are adopted following risk assessments (e.g. signs, provisions in contractual terms with customers)
  • Amend relevant policies and procedures
Not before October 2026 — Employment Tribunal time limits

Most employment tribunal claims must currently be lodged within 3 months. This time limit will be extended to 6 months.

An employee must make an Acas early conciliation application before making a claim to the employment tribunal. Provided an Acas early conciliation application is made within the employment tribunal time limit, Acas early conciliation ‘stops the clock’ and operates to extend the time limit for submission of the employment tribunal claim.

The maximum period of Acas early conciliation was extended from 6 weeks to 12 weeks in December 2025.

What you should be doing to prepare
  • Policies and procedures governing data retention should be reviewed to ensure they take into account both the extended period of Acas early conciliation and the extended time limit for bringing claims.
January 2027 — Unfair dismissal

The qualifying period to bring an unfair dismissal claim will reduce from just under two years to 6 months, effective from 1 January 2027. Employees with at least 6 months’ service as at 1 January 2027 will be able to make a claim — service prior to January 2027 will count.

What you should be doing to prepare
  • By November 2026 — review the performance/conduct of all employees who will have accrued 6 months’ service by 1 January 2027
  • Consider whether probationary periods should be shortened so decisions on new hires are made before they accrue the right to claim
  • Consider adjusting qualifying periods for benefits (e.g. life assurance, PMI, income protection) dependent on satisfactory probationary period completion
  • Reduce probationary periods to 3 months (with max 2-month extensions) in advance of the change
January 2027 — Fire & rehire & restrictions on contract changes

Restrictions on making certain changes to an employee’s terms and conditions will come into effect, along with protection from dismissal for refusing to agree to changes. Pre-existing contractual rights to make changes are permitted but introducing a right to make changes after January 2027 will be restricted. Dismissing an employee for refusing to agree to a ‘restricted variation’ will become automatically unfair (with limited exceptions). The risk is not limited to actual dismissal — it includes constructive dismissal.

What you should be doing to prepare
  • Review employment contracts well in advance of January 2027 to inject further flexibility where needed
  • Where no pre-existing right to make changes exists, pay rises can be made conditional on agreeing to new terms — an effective way of circumventing the new rules
  • Assess constructive dismissal risk before proposing or implementing any contractual changes
2027 — Guaranteed hours (zero hours)

A right for qualifying workers on zero hours contracts to be offered guaranteed hours will be introduced, calculated using a set ‘reference period’ (duration yet to be determined). This creates difficulties if the reference period is an unusually busy period for an employer.

The worker does not have to accept the offer; and they don’t have to ask for this if they don’t want it. These changes are likely to have a significant impact on employers who engage workers on zero hours contracts and on employment businesses who supply temporary workers. A separate employment business-focused update will be issued later this year.

2027 — Dismissal protection — pregnancy & maternity

The Act will make it unlawful to dismiss pregnant women, mothers on maternity leave, and mothers who return to work for at least a 6-month period after they return, save for in specific circumstances. The consultation closed on 15 January 2025. The current ‘protection’ is limited to priority for alternative employment in a redundancy situation; the new provisions will prevent dismissal for a specified period and will be a significant reform.

2027 — Flexible working changes

The reforms do not introduce a right to work flexibly; they bolster the existing right to make a request to work flexibly by introducing a reasonableness test and a new consultation process. The existing eight business reasons for rejection will continue to apply but if an employer is considering rejecting a request, they must consult (following a process which will be finalised following conclusion and analysis of the consultation) and if they reject a request, they must explain why their decision is reasonable. The consultation process will close on 30 April 2026.

For more information see Flexible working factsheet

By 6 April 2026
  • Issue statement of changes
–  SSP waiting days removal
–  Remove any reference to lower earnings limit
By October 2026
  • Add right to join trade union notification (form TBC after consultation)
  • Review contracts ahead of October changes
Before Jan 2027
  • Review & inject flexibility — fire & rehire/contractual change restrictions incoming
  • Pre-existing rights to make changes will be preserved.
  • Reduce probationary periods to 3 months (max 2-month extension)
Update now — April 2026
  • Sickness absence policy — SSP day-one entitlement and no lower earnings limit
  • Parental leave policy — day-one right
  • Paternity leave policy — day-one right
  • Bereaved Partners’ Paternity Leave policy (new)
  • Whistleblowing policy — sexual harassment standalone
  • Equality & diversity policy — gender equality action plan
  • Menopause policy — update to reflect guidance and action plan
Update by October 2026
  • Anti-harassment policy — ‘all reasonable steps’ duty
  • Third-party harassment policy (new obligation)
  • Data retention policy — 12-week ACAS + 6-month ET window
2027
  • Probationary period references — reduce to 3 months to align with contract changes
  • Redundancy policy — collective consultation threshold
  • Bereavement leave — pregnancy loss included
  • Zero-hours / guaranteed hours policy (new)
  • Maternity & pregnancy dismissal protections
  • Flexible working policy & procedure amended
  • Anti-harassment policy — ‘all reasonable steps’ duty — minimum steps added — obligation to consider additional steps to statutory minimum
Risk assessments & training pre Oct 2026
  • Harassment risk assessments
  • Staff training on updated anti-harassment obligations
  • Measures from risk assessments: signage, customer contract terms
  • Manager training on new day-one entitlements

The first roadmap for implementation was issued by the Government in July 2025. The Government has now published an updated implementation timeline for the key changes. The timeline as at the date of issue is as follows:

December 2025 — Royal Assent
Repeal of the Strikes (Minimum Service Levels) Act 2023
18 February 2026
Repeal of the majority of the Trade Union Act 2016 — simplified TU requirements and industrial action rules
10-year ballot requirement for trade union political funds removed
Protections against dismissal for taking industrial action
Day 1 Paternity Leave and Unpaid Parental Leave — notice period opens
1 April 2026
Repeal of the Certification Officer levy for trade unions
6 April 2026 — Main commencement
Collective redundancy protective award doubled (90 → 180 days, uncapped)
Day 1 Paternity Leave and Unpaid Parental Leave in force
Whistleblowing: sexual harassment will become a specific qualifying disclosure
Bereaved Partners’ Paternity Leave — up to 52 weeks
SSP — lower earnings limit and waiting period removed; new rate
Gender equality and menopause action plans (voluntary) + menopause guidance
Trade union recognition process simplified
Fair Work Agency established (7 April)
August 2026
Electronic and workplace balloting for statutory trade union ballots
October 2026
Fair Pay Agreement: Adult Social Care Negotiating Body established
Procurement: two-tier code
Tipping law tightened
Duty to inform workers of their right to join a trade union
Strengthening trade unions’ right of access
‘All reasonable steps’ duty to prevent sexual harassment
Third-party harassment obligation: all forms of harassment
New rights and protections for trade union representatives
Unfair practices in the trade union recognition process
Extended protections against detriments for industrial action
No earlier than October 2026
Employment tribunal time limits extended: 3 months → 6 months
December 2026
Mandatory Seafarers’ Charter commences
January 2027
Unfair dismissal qualifying period reduced to 6 months (for dismissals from 1 Jan 2027)
Compensatory awards uncapped
Fire and rehire protections in force
2027
Gender equality and menopause action plans (mandatory)
Enhanced dismissal protections: pregnant women and new mothers
Minimum reasonable steps for sexual harassment prevention — specified in legislation
Blacklisting protections extended
Industrial relations framework
Regulation of umbrella companies
Collective redundancy: collective consultation threshold updated
Flexible working changes
Bereavement leave including pregnancy loss
Right to guaranteed hours and reasonable notice / short notice payments
Electronic and workplace balloting for recognition and derecognition ballots