UK employers are bracing for the biggest set of employment law reforms in decades, but many may be focusing too narrowly on unfair dismissal while other changes under the Employment Rights Act carry significant legal and operational risk.
New research indicates that while HR teams widely expect unfair dismissal reforms to be the most disruptive element of the Act, fewer are prioritising other measures that will also reshape workplace practice from 2026 onwards.
The findings come from Brightmine, a provider of HR and employment law information services, which surveyed 1,800 HR professionals in January 2026 about their readiness for the new legislation.
Unfair dismissal tops employer concerns
Six in ten respondents said changes to unfair dismissal rules would have the greatest impact on their organisation. The Act is set to reduce the qualifying period for unfair dismissal protection to six months and remove the cap on compensation, increasing potential exposure for employers.
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Statutory sick pay reforms were the next most cited concern, mentioned by 18 percent of respondents. Smaller proportions pointed to new trade union rights, third-party harassment liability and fire and rehire reforms as the most impactful change for their organisation.
Stephen Simpson, principal editor at Brightmine, said unfair dismissal was a major area of change but not the only one requiring attention. He said the shorter qualifying period and removal of compensation limits would increase litigation risk and influence settlement expectations.
“But unfair dismissal is only part of the picture,” he said. “From October 2026, employers will also face stricter limits on fire and rehire, making it automatically unfair to dismiss employees who refuse certain contractual changes.”
He said new duties around third-party harassment would also raise the bar for employers. “At the same time, new third-party harassment duties will require employers to take all reasonable steps to protect employees from harassment.”
Wider reforms bring overlapping pressures
The Act also introduces new union access rights, allowing trade unions to request physical or virtual access to workplaces, even where employees are not union members. This represents a notable change for employers unused to regular union engagement.
Simpson said the cumulative effect of the reforms would narrow employer flexibility. He said the combined measures would leave organisations with less room for manoeuvre, reshape daily HR practice and increase the risk of costly mistakes if preparation is lacking.
He warned that preparation should begin well before formal implementation. “The key message is clear, employers cannot wait until late 2026 to act,” he said.
Preparation to dominate 2026 HR agendas
Employment lawyers have previously said the scale of the Act means HR teams will need to review policies, contracts and manager training over an extended period. Dismissal processes, documentation standards and record keeping are all expected to face closer scrutiny in tribunal cases once the reforms take effect.
Harassment prevention is also moving up employer agendas following separate legislative and regulatory attention on workplace conduct in recent years. The new duty to take all reasonable steps to prevent third-party harassment is likely to require clearer reporting channels and documented preventative action.
Union access provisions may also change how some organisations approach employee relations, particularly in larger or multi-site employers where union presence has historically been limited.
Balancing compliance and culture
For many employers, the challenge will be balancing legal compliance with maintaining trust and engagement. Rapid policy changes without clear communication can unsettle staff, while poor implementation risks disputes and claims.
HR specialists say early planning can reduce disruption. This includes reviewing dismissal procedures, assessing contractual flexibility, strengthening harassment prevention measures and preparing for more structured dialogue with unions.
The research suggests awareness of the Act is high, but prioritisation may be uneven. If organisations concentrate on one headline reform while overlooking others, they may find themselves exposed when the full package takes effect.
With implementation staged from 2026 onwards, the coming year is likely to see increased demand for legal advice, manager training and policy audits as employers work to adapt to the new framework.
