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Friday, October 30, 2026

Employment Law Changes Need Early Preparation - Business News Wales

For many employers, the Employment Rights Act 2025 will not arrive as a single moment. It is already here, it is still unfolding, and its most significant consequences are yet to be felt.

The staggered timetable can create a false sense of distance as a change due in January 2027 may appear to sit safely on next year’s agenda. In practice, decisions being made now on recruitment, probation, contracts, sickness absence, flexible working and the use of casual labour may determine how well prepared an employer is when the next phase comes into force.

The Employment Rights Bill became the Employment Rights Act 2025 on 18 December 2025. It introduces additions and amendments to existing legislation, including the Employment Rights Act 1996, with changes taking effect across 2026 and 2027.

From 6 April 2026, statutory sick pay became payable from the first day of illness rather than the fourth day, and the lower earnings limit was removed. Previously, workers had to earn a minimum amount to qualify. These are practical changes affecting payroll, absence management and cost planning.

The next phase is likely to require deeper preparation. In October 2026, time limits for bringing claims to an employment tribunal are due to increase to six months for all claims. At present, the time limit for most claims is three months, or technically three months less one day for unfair dismissal claims. Extending that period will create a longer window of uncertainty for employers following...



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