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Employment Rights Act - are you ready?

Blog
Capsticks
02 Mar 2026

The most fundamental changes in employment law for a generation are fast approaching. The Employment Rights Act will have a significant impact on public sector organisations, so you need to be prepared.

The Act itself is 331 pages, with 30 different topics of reform – it is therefore critical that organisations are well informed of what is coming into force, when and how to prepare and resource for these reforms. The forthcoming Employment Rights Act represents a major legislative overhaul that will greatly reshape the way employers and public sector organisations manage their workforce, implement policies, and navigate compliance obligations. For many, these reforms will require a strategic audit of all existing HR processes, systems, and resource planning to ensure they remain legally compliant and ready for the change.

Following Royal Assent on 18 December 2025, the Act sets out a long list of important changes for lawyers, HR professionals and managers which would be impossible for us to cover in this article. We’ve detailed below some of the key changes and will go into more detail in our webinar on 5 March on their impact.

Key Dates

• From 6 April 2026, there will be strengthened protections for workers who “blow the whistle” on sexual harassment as well as day 1 paternity leave and unpaid parental leave.

• From 7 April 2026 we will have the Fair Work Agency, which will have powers to undertake its own investigations of employers and impose fines to enforce employment law (for example around minimum wage and holiday pay).

• 1 October 2026 is very significant:

- Employment Tribunal time limits will be extended from 3 to 6 months

- New rules on sexual harassment including a duty to take “all reasonable steps

- Employer liability for third party harassment of employees and workers

- New rules on public sector outsourcing regarding “equality of terms” and a range of new rules relating to trade unions and related employment rights

- Extending protections against detriments for taking industrial action

New rules on compensation for unfair dismissal

One important change is to unfair dismissal claims. There will now be a new qualifying period of 6 months’ service rather than the current 2 years, with the cap on compensatory award to be removed from 1 January 2027 making it more attractive for employees to bring unfair dismissal claims with more to fight for. This effective change is likely to encourage more employees to bring claims, and as a result, robust and well-documented management of probationary periods will be essential, ensuring concerns are identified early, addressed consistently, and supported by clear evidence.

We expected consultations in Autumn 2025 on a number of areas, including: “fire and rehire”, ending the exploitative use of zero hours contracts, trade union measures, collective redundancy and flexible working. The consultation on fire and rehire opened on 4th February 2026, giving employers and stakeholders an opportunity to contribute their views on proposed safeguards and procedural requirements.

Capsticks has significant experience of supporting employers to navigate changes in employment law and policy, from reviewing current policies, contracts, and implementing change, to delivering training to employees at all levels. We also deal with any complaints or specific issues that may arise in individual cases, by conducting investigations, supporting decision makers and HR, and defending any employment tribunal claims. Our aim is to deliver results that matter, providing practical, sector‑specific guidance that helps organisations navigate change smoothly and effectively.

Explore YPO's Bespoke Procurement Services and Training Academy, designed to equip your public sector organisation with the right tools, expert guidance and support needed to navigate upcoming employment law changes.

Visit YPO’s Legal Services to access specialist support and trusted frameworks designed to help you manage risk and stay compliant as reforms take effect.

Author

Capsticks

capsticks.com

Capsticks is a UK national law firm specialising in health, housing, and social care, offering a full range of legal services across these sectors. Founded in 1979, the firm has grown to multiple offices nationwide and is well‑known for advising NHS organisations, housing associations, and professional regulators. Their expertise spans clinical law, regulatory matters, employment, corporate and commercial work, and major public inquiries, making them a leading specialist firm supporting organisations that deliver essential public services.

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