Employment Rights Act Watch: August 2026 edition
Welcome to this month’s edition of Employment Rights Act Watch, bringing you the very latest on the implementation process, together with practical tips on what you should be focusing on to prepare for the changes ahead.
For a comprehensive overview of the Act and to access detailed guidance on topics most relevant to you, please browse our Employment Rights Act Hub.
A new government: what are the implications for the Employment Rights Act?
Andy Burnham MP took office as Prime Minister on 20 July 2026. So far, he has given no indication that we can expect any change on the Employment Rights Act reforms, and all signs point toward continuity. Read more on our new Prime Minister’s first few weeks in office and what that suggests for employment reforms here.
Where are we on implementation?
Since the last edition we have seen changes to the implementation timeline, so we now anticipate the following timeline on remaining reforms taking effect in 2026:
The timeline update was published under Keir Starmer’s premiership, and it is not yet clear whether timing will be further impacted by the change in government. We will keep you updated.
Looking beyond 2026, we are continuing to support clients working toward the much-anticipated changes to the unfair dismissal regime, still expected to come into effect in January 2027.
What should you be focusing on?
Continue to focus on unfair dismissal and harassment
The priorities for employers remain largely unchanged from our previous edition, and you should continue to prepare for the changes to the unfair dismissal regime and the anti-harassment framework. Read more about the changes, what they mean for you and how you can prepare here:
Take note of trade union changes
30 October 2026 is expected to bring changes to trade union law, including changes that will affect employers outside traditionally unionised environments. Even if you do not regularly deal with a union, you need to take note of the following:
- A new trade union access right, which will entitle trade unions to request physical or digital access to your workforce, subject to very narrow exceptions. You can read more about this, what it means for you, and whether it is advisable to take steps to prepare in our updated guide here.
- A new duty to inform workers of their trade union rights. We are still waiting for the government to confirm exactly what will be required of employers under this new duty. Once that detail is confirmed, employers will need to act quickly to update their procedures ready for the 30 October implementation date. You should therefore keep a close eye on any developments.
In addition, we recommend that you take a look at your holiday pay arrangements. As of 6 April 2026, employers are under obligations to keep records relating (among other things) to holiday pay compliance, and the Fair Work Agency (FWA) will be given powers to enforce holiday pay compliance from 2027. The introduction of a state enforcement route is going to increase risk for employers who do not calculate holiday pay correctly. Based on the government’s proposed enforcement approach, it is clear that employers who take swift action now to remedy any inaccuracies will face reduced exposure, so now is the time to audit your arrangements and ensure you are compliant. You can read more the proposals, what they mean for you, and what you can do prepare here.
What is the very latest on the Employment Rights Act?
The government is finalising arrangements to bring changes to trade union law into force at the end of October. It has now finalised its statutory Code of Practice on trade union rights of access, and secondary legislation has been brought forward to implement government proposals on the detailed mechanics associated with the right.
With regard to the changes to tipping, the (Starmer) government withdrew a draft updated statutory Code of Practice on tipping without comment, following heavy criticism from Unite. The government has now announced that we can expect a new consultation. Depending on when that is issued, that may call the expected implementation by the end of 2026 into question. We will keep you updated as more information becomes available.
Finally, the government consultation on reforms affecting zero- and low-hours workers will close on 25 August, so this is your last chance to contribute if you are going to be affected. You can read more about the proposals here.
Navigating the Employment Rights Act 2025
An overview of the key changes and some general guidance on steps you can sensibly take to prepare.
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