The Employment Rights Act 2025 received Royal Assent in December, representing the most significant overhaul of UK employment law in decades. It shifts the balance of rights toward employees, while courts continue to expand the scope of ‘worker’ status.
“The greater scrutiny of zero‑hours contracts will make it harder to engage agency and zero‑hours workers for urgent resourcing needs”
For the construction industry – already managing complex labour models, subcontracting chains and fluctuating workforce needs – the next few years will bring substantial operational and legal changes.
The most important developments are the reduction of qualifying limits for unfair dismissal (and removal of the cap) and proposed changes limiting zero‑hour contracts and the use of agency workers.
Early 2026: trade union reform
The act repeals the Strikes (Minimum Service Levels) Act 2023, simplifying industrial action notices and ballot requirements and making strikes easier to organise while strengthening dismissal protections for those participating in lawful action. Construction sites, where union presence is significant, may see increased collective activity and more assertive bargaining.
April 2026: pay, leave and consultation changes
Employment costs will rise. From 1 April 2026, minimum hourly pay rates will be 12.71 for workers aged 21 and over, 10.85 for ages 18-20, and 8.00 for under‑18s and apprentices. Statutory parental pay will rise to 194.32 per week, and statutory sick pay...
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