The government released a critical update on 3 February 2026 about their Plan to Make Work Pay. This is the biggest change to employment law in a generation, and it’s going to affect every UK business over the next couple of years.
If you’re running a business, you need to know what’s coming. The good news is that changes are happening gradually, giving you time to prepare.
What is the Plan to Make Work Pay?
The government wants to bring employment rights into the 21st century. They’re extending protections that the best companies already offer to millions more workers across the country.
The Employment Rights Act 2025 became law in December last year. Now we’ve got a clear timeline for when everything kicks in
The timeline – when do things change?
Already Happened (December 2025)
The Strikes Minimum Service Levels Act has been scrapped. That one’s done and dusted.
18 February 2026 (That’s Next Week!)
Trade union rules are getting simplified. Employees who are eligible for day-one paternity leave and unpaid parental leave can start giving notice now.
The big one here is protection against dismissal for taking industrial action. Most of the Trade Union Act 2016 is being repealed.
6 April 2026 (Two Months Away)
This is when several major changes kick in:
Day-one rights: Paternity leave and unpaid parental leave become available from day one of employment. No more waiting periods.
Sick pay changes: The lower earnings limit is gone, and the three-day waiting period is scrapped. This means more workers can claim Statutory Sick Pay from their first day of illness.
Collective redundancy: If you mess up the consultation process, the maximum protective award doubles. That’s potentially a lot more money.
Whistleblowing: Stronger protections for workers who report sexual harassment.
Bereavement: New bereaved partners’ paternity leave allows up to 52 weeks if a mother or primary adopter dies in the first year.
Menopause and gender equality: Voluntary action plans start (these become mandatory in 2027).
Trade union recognition: The process gets simpler.
7 April 2026
The Fair Work Agency launches. This is the new enforcement body that will police employment law breaches.
August 2026 or Later
Electronic and workplace balloting for trade union votes becomes available.
October 2026
A whole host of changes land in October:
Sexual harassment: You’ll need to take “all reasonable steps” to prevent it, not just “reasonable steps.” You’ll also be liable if third parties, like customer,s harass your staff.
Tipping law: Gets tightened up, with staff consultation required every 3 months.
Trade unions: More rights for reps and stronger access rights.
Social care: Fair Pay Agreement negotiating body gets established in England.
December 2026
The Mandatory Seafarers’ Charter kicks in (if this applies to your business).
January 2027
Two massive changes happen from January:
Unfair dismissal: The qualifying period drops from two years to six months. That means employees can claim unfair dismissal much sooner. Plus, the compensation cap is removed completely.
Fire and rehire: Protections come into force. You won’t be able to dismiss staff and rehire them on worse terms unless your business is in a genuine financial crisis.
Throughout 2027
The final wave includes:
- Mandatory menopause and gender equality action plans
- Enhanced protections for pregnant women and new mothers
- Regulation of umbrella companies
- Flexible working reforms
- Bereavement leave for pregnancy loss
- New rights for zero-hours workers
- Changes to collective redundancy consultation
What should you be doing right now?
1. Get Your House in Order for April
You’ve got two months to prepare for the 6 April changes. Make sure your sick pay processes are ready, and if you’re planning redundancies, understand the new protective award rules.
2. Review Paternity and Parental Leave
From April, these become day-one rights. Update your policies and make sure your team knows.
3. Prepare for the Fair Work Agency
This new enforcement body starts in April. They’ll have real teeth when it comes to policing employment law. Make sure you’re compliant.
4. Plan for January 2027
The unfair dismissal and fire-and-rehire changes are huge. If you’re planning restructuring or changes to terms and conditions, get expert advice now. What’s possible now might not be possible in a year.
5. Audit Your Contracts
Zero-hours contracts, fixed-term deals, casual arrangements – they all need reviewing for the 2027 changes.
6. Think About Sexual Harassment Policies
You’ve got until October to get your prevention policies up to scratch, but don’t leave it until the last minute. “All reasonable steps” is a high bar.
7. Keep Records
Document everything. Decisions, policies, conversations. If you face a claim down the line, good documentation is your best defence.
Don’t get caught out
This is the biggest change to employment law in a generation. The government is being clear about timings so businesses can prepare. In the coming weeks and months, we shall be explaining in more detail the effect of all the changes in a timely manner.
The key is to start now. Don’t wait until each deadline is looming. By planning ahead, you’ll protect your business from costly mistakes and create a better workplace for your team.
Some of these changes might seem daunting, but remember – the best employers are already doing most of this stuff. These reforms are about raising the floor and making sure everyone’s playing by the same rules.
Whether you need help with payroll adjustments, policy updates, or just understanding what applies to your specific situation, we’re here for you. We’ll make sure you’re compliant every step of the way.
Get in touch today and let’s make sure your business is ready for what’s coming.
