On 3 February 2026, the UK Government released a major update to its Plan to Make Work Pay and the Employment Rights Act 2025, setting out phased employment law reforms that will affect every UK employer over the next two years. This represents the most significant overhaul of employment legislation in decades, with sweeping changes across worker protections, sick pay, family leave, trade union rules, flexible working, dismissal rights, and more.

The latest update outlines new timelines, confirms which measures will take effect in February, April, and July 2026, and provides clarity on what businesses must do now to prepare.

1. What Is the Plan to Make Work Pay?

The Plan aims to modernise employment rights, improve job security, and ensure fairer working conditions for millions of UK workers. It introduces phased reforms through 2026–27, including changes introduced via the Employment Rights Act 2025.

Key intentions include:

• Bringing UK employment rights “into the 21st century”
• Extending protections already provided by leading employers
• Creating a better balance between flexibility, fairness, and employer responsibility

2. Major Changes Taking Effect in 2026

February 2026 (18 February Implementation)

According to the Government’s updated timeline:

• Repeal of the majority of the Trade Union Act 2016, significantly simplifying union requirements
• Removal of the 10-year ballot requirement for political funds
• Simplified industrial action procedures
• Expanded protections against dismissal during industrial action
• ‘Day 1’ rights for Paternity Leave and Unpaid Parental Leave
• Notice rules updated for newly eligible parents

April 2026 (6 & 7 April Implementation)

From April, a wider range of reforms begin:

Taking effect 6 April 2026:

• Statutory Sick Pay reform
  • Removal of the Lower Earnings Limit
  • Removal of the waiting period
• Strengthened whistleblowing protections, particularly relating to sexual harassment
• ‘Day 1’ rights for Paternity Leave and Unpaid Parental Leave (continued rollout)
• Bereaved Partners’ Paternity Leave available for up to 52 weeks
• Collective redundancy protective award doubled
• Menopause and gender equality action plans (voluntary guidance)
• Simplified trade union recognition process

Taking effect 7 April 2026:

• Creation of the Fair Work Agency, a new body expected to enforce fair standards and compliance

3. Major Reforms Coming in 2027

According to Make UK’s reaction summary, more complex reforms will follow in 2027:

• Major changes to dismissal rights
• New rules for flexible working
• Stronger protections and new frameworks for zero‑hours contracts
• Additional reforms on family leave, workplace protections, redundancy, and whistleblowing

Employers are encouraged to plan early due to the significant nature of these changes.

4. The Biggest Impacts for UK Employers

Payroll complexity will increase: Changes to statutory sick pay, paternity leave, redundancy awards, and flexible working rights will require updates to payroll systems.

HR policies must be rewritten: Family leave, flexible working, whistleblowing, and industrial action procedures will no longer align with existing policies.

Industrial relations will shift: The repeal of key elements of the Trade Union Act 2016 simplifies union engagement and may increase workplace organising.

Compliance risk rises considerably: With reforms spread across two years, employers must monitor deadlines carefully to stay compliant and avoid penalties.

5. What UK Businesses Should Do Now

• Conduct a full HR policy review: Ensure alignment with February and April 2026 changes.
• Update payroll software and processes: SSP changes alone removing the LEL and waiting period will affect wage calculations.
• Begin workforce planning for 2027 reforms: Especially important for organisations using zero‑hours or flexible contracts.
• Train managers on new rights and protections: Particularly concerning whistleblowing and dismissal protections.
• Partner with payroll experts: Given the scale of changes, outsourcing may reduce risk significantly.

These reforms are complex, far‑reaching, and will directly impact how your business pays, manages, and supports its workforce.

Book a call with a PayCheck payroll expert today to ensure your business stays compliant, protected, and prepared for every change ahead. Our team can help you assess risk, update your payroll systems, and implement the reforms smoothly.