If you’re running or growing a business right now, you already know that clarity matters. With the government confirming the updated timetable for the Employment Rights Act 2025, SMEs are facing one of the most significant shifts in employment law in over a decade. A large number of changes will begin rolling out from early 2026 and continue into 2027.
My focus, as always, is helping SMEs prepare early, avoid disruption, and stay confidently compliant. Here’s a clear, practical breakdown of what’s coming and what it means for your business.
Already in Force (December 2025)
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Repeal of the Strikes (Minimum Service Levels) Act 2023.
18th February 2026: Major Trade Union Reforms
A substantial shift in trade union legislation, including:
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Repeal of most of the Trade Union Act 2016.
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Removal of the 10‑year ballot requirement for political funds.
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Simplified industrial action notices.
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Stronger protections against dismissal during industrial action.
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Employees newly eligible for Day 1 Paternity Leave and Unpaid Parental Leave can begin giving notice.
6th April 2026: A Busy Date for Employers
This is a key milestone with multiple changes landing at once:
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Collective redundancy protective award doubled.
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Day 1 Paternity Leave and Unpaid Parental Leave fully in force.
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Stronger whistleblowing protections, particularly around sexual harassment.
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Bereaved Partners’ Paternity Leave extended up to 52 weeks in tragic circumstances.
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Statutory Sick Pay: removal of the Lower Earnings Limit and waiting period.
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Introduction of voluntary action plans on gender equality and menopause support.
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Updated menopause guidance for employers.
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Simplified trade union recognition processes.
7th April 2026: Establishment of the Fair Work Agency
A new regulatory body designed to support fair work practices and strengthen enforcement.
No Earlier Than August 2026
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Introduction of electronic and workplace balloting for statutory trade union ballots.
October 2026: A Wide Set of New Duties and Protections
This period brings some of the most impactful changes for SMEs:
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Fair Pay Agreement Negotiating Body for Adult Social Care.
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Introduction of a two‑tier procurement code.
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Tighter tipping legislation.
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A new duty to inform workers of their right to join a union.
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Strengthened union access rights.
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A new employer duty to take all reasonable steps to prevent sexual harassment.
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New obligations around third‑party harassment.
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Powers to define what counts as “reasonable steps”.
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New protections for trade union reps.
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Extended protections for workers taking industrial action.
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Measures addressing unfair practices in union recognition.
No Earlier Than October 2026
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Changes to employment tribunal time limits.
December 2026
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Mandatory Seafarers’ Charter comes into force.
January 2027
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Unfair dismissal qualifying period reduced to 6 months.
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Compensatory awards uncapped.
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New fire‑and‑rehire protections.
What This Means for SMEs
This is one of the most significant periods of employment law reform in recent memory. For SMEs, the key is early preparation, not last‑minute firefighting.
And I want to make this practical.
Bring me one real issue that will affect your business because of these upcoming changes. It could be:
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Managing new Day 1 rights
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Updating policies for sexual harassment prevention
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Preparing for the reduced unfair dismissal qualifying period
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Strengthening your approach to trade union engagement
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Reviewing sickness absence processes under the new SSP rules
Whatever it is, bring it to me and I’ll help you work through it clearly and calmly.
How Starfish People HR Is Supporting SMEs
We’re already helping clients to:
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Update policies and handbooks
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Strengthen manager training
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Build proactive wellbeing and equality plans
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Prepare for the new Fair Work Agency landscape
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Review and update redundancy, dismissal, and grievance processes
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Ensure compliance with new sexual harassment prevention duties
If you’d like a clearer view of what these changes mean for your business, my Human‑First HR Clarity Session is designed exactly for this practical, jargon‑free, and tailored to your world.
