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Employment law is changing and businesses across Bedfordshire will need to prepare.

The Employment Rights Act 2025 introduces a range of reforms that will gradually come into force between 2026 and 2027. These changes will affect areas from sick pay and parental leave to unfair dismissal rights and workplace protections.

While many of the reforms are designed to strengthen employee protections, they will also require employers to review policies, procedures and employment contracts to ensure they remain up to date and compliant.

For Bedfordshire businesses, particularly those without dedicated HR teams, understanding what is changing and when will help ensure they are well prepared.

A phased rollout of employment law reforms

The Employment Rights Act 2025 received Royal Assent in December 2025 and will introduce a series of reforms over the next two years. Rather than replacing existing legislation, the new Act sits alongside it, introducing additional rights and enforcement measures.

Importantly for employers, these changes will not arrive all at once. The government has set out a phased timeline, giving businesses time to understand the new requirements and prepare ahead of implementation.

What is changing first? Key reforms in 2026

Several reforms are expected to take effect during 2026, starting with changes to statutory payments and family leave.

April 2026: Sick pay and family leave

• Statutory Sick Pay (SSP) becoming a day one entitlement, removing the current waiting period.
• Removal of the Lower Earnings Limit, meaning more lower paid workers will qualify for SSP.
• Paternity leave becoming a day one right, rather than requiring 26 weeks of service.
• Unpaid parental leave becoming available from day one of employment.
• New rights for zero hours and agency workers, including access to guaranteed hours contracts.
• A day one right to bereavement leave.
• Stronger protections for pregnant employees.
• Flexible working becoming the default position, unless employers can demonstrate a valid reason for refusal.
• Employment contracts and staff handbooks.
• Absence and sick pay policies.
• Flexible working procedures.
• Harassment and workplace conduct policies.
• Recruitment and probation processes.
• Manager training and HR procedures.

The government will also introduce a new Fair Worker Agency. This single enforcement body will help ensure compliance with key employment rights and provide support for employees and workers seeking advice.

October 2026: Employment tribunal and workplace protection

Further reforms are expected later in 2026.

One notable change is the extension of the time limit for bringing an employment tribunal claim, increasing from three months to six months.

Employers will also face stronger duties around preventing sexual harassment in the workplace, with businesses required to take all reasonable steps to prevent harassment from occurring.

In addition, new protections will apply where employees experience harassment from third parties such as customers, clients or other external parties.

The legislation will also introduce tighter restrictions on the practice often referred to as “fire and rehire,” limiting an employer’s ability to impose changes to terms and conditions without agreement.

Together, these reforms place greater emphasis on workplace culture, training and clear internal policies.

Key reforms expected in 2027

Further significant changes are expected to take effect in January 2027.

The qualifying period for unfair dismissal protection will reduce from two years to six months. This will influence how employers approach recruitment, probation periods and early performance management.

The government has also indicated that the statutory compensation cap for unfair dismissal claims may be reviewed, potentially increasing the financial exposure for employers.

Other proposed reforms currently under consultation include:

Many of these measures are still subject to consultation, so further guidance and detailed regulations are expected before they come into force.

What this means for Bedfordshire businesses

For employers across Bedfordshire, the real challenge will be translating these legal developments into practical changes within the workplace.

Businesses may benefit from reviewing key areas now, such as:

Taking time to review these areas early can help minimise disruption and ensure businesses are ready and remain compliant as the new rules come into force.

Preparing for the changes ahead

The Employment Rights Acts represents one of the most significant shifts in UK employment law in recent years, moving towards stronger worker protections and greater accountability for employers.

For Bedfordshire businesses, staying informed and reviewing internal processes early, will be key to ensuring they are well prepared to navigate the changes successfully.