Major Legal Changes on the Horizon!
The Employment Rights Bill has become law, formally agreed to make the Bill into an Act of Parliment. The employment law changes in this Act will take place over a 2 year period, with most changes happening in 2026 and 2027*, including:
*Some of these changes are still going through parliament and may be subject to change.
- Statutory Sick Pay (SSP) will become a day one right and must be paid from the first day of absence instead of the fourth
- For the first time, the lowest earners will qualify for SSP when off sick
- Paternity and parental leave will become a day one right – employees will no longer need to attain a minimum amount of service to take this time off
- The maximum period of the collective redundancy protective award will be doubled
- Strengthened Whistleblowing protections
- Establishing the fair work agency
- Simplifying trade union recognition process by removing the 40% support threshold for ballots, enabling electronic voting and lowering membership requirements to 2% from 10%
- Restricting the use of ‘fire and rehire’ to change employee terms and conditions
- Changing contract wording to include a reference to trade unions
- Employers must take “all reasonable steps” to prevent sexual harassment of their employees
- Introduction of an obligation on employers not to permit the harassment of their employees by third parties
- Extension of employment tribunal time limits
- Strengthening trade union rights of access
- New rights and protections for trade union representatives
- Tightening the tipping law
- Reducing unfair dismissal qualifying service from two years to six months
- Strengthened rights for pregnant workers
- Collective redundancy consultation will be triggered not only by 20+ redundancies at one establishment, but also by reaching a new organisation-wide redundancy threshold
- Employers will be required to explain why it was reasonable to refuse a flexible working request
- Extending parental bereavement leave to miscarriages occurring before the 24th week of pregnancy
- Ending the use of zero-hours contracts and applying measures to agency workers
- Gender pay gap and menopause action plans will be introduced on a voluntary basis in the April
From April 2026, the National Minimum & Living Wage will rise once again...
For many employers, this isn’t just about adjusting payslips. It’s about re-evaluating budgets, reviewing productivity, and ensuring you’re genuinely getting value for every pound invested in your workforce. With wage increases and rising operational costs, every placement and every hour of work now has a direct impact on your bottom line, so every pound spent needs to count.
So, are you confident you’re getting your money’s worth? Ask yourself:
Is your agency solving problems or creating new ones?
Are roles being filled with people who deliver real value?
Do you have flexible cover in place to manage sudden staffing gaps or peak periods?
By reviewing your workforce strategy now, including supplier performance, flexible staffing options, and planning for temporary cover you’ll enter the new financial year prepared, in control, and able to respond quickly to unexpected needs. Using flexible agency staff ensures critical roles are covered without overcommitting budget, helping you maintain productivity while keeping costs under control.
Meet our Compliance Team
Amy Wheat
Amy joined the Essential team in 2014 as a Recruitment Consultant and progressed through roles as Branch Manager and Operations Manager, before moving into the Compliance Department as Training & Development Manager in 2025. A year on, we’ve asked Amy to reflect on her journey so far and share her insights on what managers can expect in 2026.
What’s the biggest lesson you’ve learned in the past year that managers would benefit from knowing?
The biggest lesson from the past year is that compliance isn’t just a tick box exercise. Even if you’re using agency workers, the responsibility for how they are managed on site doesn’t disappear. Things like working hours, rest breaks, health and safety, fair treatment, and supervision all directly affect whether a business is compliant. Over the last year, it’s become really clear that most issues crop up because processes aren’t clear, checks aren’t consistent, or records aren’t accurate.
With the Employment Rights Act coming, this is even more important. The new legislation is expected to strengthen workers’ rights around predictable working hours, pay, holiday entitlement, and fair treatment. That means it’s not enough to have a contract or policy – businesses will need to show evidence that these rights are being applied in practice from day one. For example, making sure shift patterns are fair and consistent, ensuring everyone gets their breaks, and logging hours worked accurately are all critical. Working closely with your agency to make sure processes are in place is going to be even more crucial.
How has your understanding of compliance changed over the past year?
My understanding of compliance has shifted a lot over the past year. It’s no longer just about ticking boxes for audits or having the correct paperwork in place. Compliance is now about what happens on site every single day. Employment rights, pay accuracy, working hours, holiday entitlement, and sick pay all need to be applied consistently across the workforce, including agency staff.
One of the biggest changes I’ve noticed is how much focus there is now on evidence and accountability. It’s not enough to say “we have the right processes” you have to be able to prove that those processes are followed and monitored. For example, if a worker hasn’t opted out of the 48-hour week limit, you need accurate records to prove hours aren’t being exceeded. If someone is on maternity or paternity leave, you need to make sure pay and entitlements are correct and documented.
Another key point is the partnership between clients and their agency. Compliance isn’t just the agency’s responsibility – it’s a shared effort. Agencies can provide guidance, checks, and audits, but ultimately how workers are treated day-to-day rests with the client on site. Open communication, clear allocation of responsibilities, and regular checks have become essential. Businesses that take this seriously are the ones that avoid issues before they escalate and can demonstrate compliance confidently, especially with the Employment Rights Bill changes coming.
Based on your experience so far, how do you see training and compliance expectations changing for managers in 2026?
Looking forward to 2026, the expectations around compliance are going to be much higher and much more practical. The Employment Rights Act will likely bring stronger protections for workers around predictable hours, holiday pay, fair treatment, and clarity on pay and entitlements. This means that it won’t be enough to have policies on paper, businesses will need to show that they are being applied consistently.
Training and guidance will also need to evolve. It won’t just be about attending a one-off session or reading a handbook to tick a box. It will be about understanding the rules, knowing where risks might appear, and being able to act on them quickly. For example, making sure that hours worked are logged correctly, breaks are taken, health and safety is followed, and any incidents are reported immediately. Training will need to focus on real-life scenarios and practical steps that staff can take on site, rather than abstract policies.
For clients working with agency staff, this means staying proactive: keep accurate records, engaging regularly with your agency, and making compliance part of everyday operations. Those who do this will not only reduce the risk of penalties or disputes but will also create a better, safer, and more consistent environment for their workforce. Essentially, the expectation in 2026 is that compliance becomes a natural part of running the business, not an afterthought – preparation will be key.
Join our Webinar
Please register your interest to join our Employment Law webinar on Wednesday 25th February between 11am - 12pm. Will we email you an event reminder.
