d&i Leaders Equality Law Update
Equality law at work – what to expect in 2026
By Rupa Mooker on 18 December 2025
As we enter 2026, equality and employment law across Scotland, England and Wales is set for its most significant reform in decades. Many of these changes stem from the Employment Rights Bill (ERB) and related proposals that will reshape workplace rights, employer obligations and enforcement mechanisms. For employers, professional advisers and those working in equality, diversity and inclusion, understanding what is coming (and when) is essential.
The Employment Rights Act 2025
The ERB, introduced following the 2024 general election, represents the most comprehensive overhaul of employment law in a generation. While it was expected to receive Royal Assent earlier this year, opposition in the House of Lords delayed its progress. However, the ERB has received Royal Assent today (18th December) meaning we now have the Employment Rights Act 2025, with phased implementation planned throughout 2026 and beyond.
Key reforms expected in 2026
1. Trade union activity and industrial action
Several reforms will take effect around February 2026, including:
- simplified industrial action and ballot notices
- a reduction in notice of industrial action from 14 days to 10
- a simple majority vote to authorise industrial action
- removal of the requirement for picket supervisors
- extension of the industrial action mandate period from 6 to 12 months
- dismissal for taking part in industrial action is expected to become ‘automatically unfair’ with the current 12-week limit for claiming unfair dismissal being removed
Further reforms will take place in April 2026, including simplified union recognition and electronic voting. By October 2026, employers will be under a new duty to inform workers of their right to join a trade union, alongside a new statutory right to time off for union equality representatives.
2. Paternity leave and unpaid parental leave
From April 2026, paternity leave and ordinary unpaid parental leave will become ‘day one’ rights. This removes the current service requirements of 26 weeks (paternity leave) and one year (parental leave), aligning with wider DEI aims to remove barriers to family friendly benefits.
3. Sick pay
Changes to statutory sick pay (SSP) will happen in April 2026. The lower earnings limit will be removed, extending SSP eligibility to lower paid workers, and SSP will become payable from the first day of absence rather than the fourth.
4. Collective redundancy protective awards
The maximum protective award for failure to consult in collective redundancies will double from 90 days’ pay to 180 days’ pay in April 2026.
5. Harassment prevention
Going further than the current obligation to take ‘reasonable steps,’ employers will be expected to take ‘all reasonable steps’ to prevent all forms of harassment, including by third parties such as customers or suppliers. Sexual harassment is also expected to become a ‘qualifying disclosure’ under whistleblowing law giving protection from detriment and unfair dismissal to whistleblowers making a sexual harassment disclosure. A change to the law around non-disclosure agreements (NDAs) is also expected which means that clauses preventing workers from alleging or disclosing work-related harassment or discrimination would be void.
6. Gender pay gap and menopause action plans
Large employers (250+ employees) are expected to prepare gender pay gap and menopause action plans. These are likely to be voluntary from April 2026, with mandatory requirements expected from 2027.
7. Fire and rehire
From October 2026, dismissing employees in order to re-engage them on worse terms is expected to become automatically unfair in most cases. Exceptions may apply where changes are minor, routine or relate to the place of work.
8. Employment Tribunal time limits
Time limits for bringing Employment Tribunal claims are expected to increase from three months to six months for most claims from October 2026.
9. Unfair dismissal rights
The ERB initially proposed day one unfair dismissal rights. However, following discussions with business and trade unions, the government has proposed a six month qualifying period instead.
Amendments passed by the House of Commons earlier this month included a proposal to remove the cap on compensatory awards for unfair dismissal. While most amendments were approved, the proposal to remove the cap remained the final issue delaying Royal Assent. As outlined above, the ERB finally passed through the House of Lords on 16th December and Royal Assent has been received today, giving us the Employment Rights Act 2025. The government has committed to publishing an impact assessment regarding removal of the cap on unfair dismissal compensation. The unfair dismissal changes are expected to take effect in January 2027.
10. Ethnicity and disability pay gap reporting
Ethnicity and disability pay gap reporting is not included in the ERB. However, the government has consulted separately and is expected to introduce this under the forthcoming Equality (Race and Disability) Bill.
Several other proposals including enhanced maternity and pregnancy protections and a new statutory right to bereavement leave are not expected to come into force until 2027.
Preparing for 2026
With early preparation, organisations can turn legal compliance into competitive advantage. Some steps to achieve this are outlined below.
1. Policies and documentation
- Review and update contracts, handbooks, policies and procedures for the new ‘day one’ rights and changes to SSP.
- Consider aligning equal opportunity, harassment and whistleblowing policies with the forthcoming changes.
2. Reporting and action plans
- Where applicable, start to draft or enhance gender, menopause and broader equality action plans in anticipation of regulatory requirements.
3. Training and culture
- Invest in line manager and leadership training on topics such as preventing harassment and handling disclosures.
- Equip teams with the skills and knowledge to support diverse family structures, including new parental leave rights.
4. Systems and data
- Train and work with payroll and appropriate providers to ensure SSP, parental leave and redundancy reporting obligations are automated and compliant wherever possible.
5. Communication
- Communications should be clear and consistence in the workplace to ensure that employees and workers understand the changes introduced by the ERB.
- Ensure such communications are accessible and easy to understand and seek feedback to establish where there may be gaps in understanding or knowledge.
Embedding transparent and inclusive practices reflecting the evolving legal and cultural expectations of modern workplaces, as well as staying informed and proactive, is key. When planning, remember to involve relevant team members not only from HR, but from areas such as payroll and IT. Kicking off a phased approach now, and setting out priority areas in a (including financial planning) will make compliance easier going forward. As always, employers should seek legal advice before making significant changes to policy or practice.
View more Equality Law articles from d&i Leaders
* This article is intended as general guidance and does not constitute legal advice. If you have specific concerns about matters arising in your organisation, you should seek legal advice.
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