The first wave of employment law reforms is here. Are you ready?
If you’ve been tracking the Employment Rights Act 2025 journey, you’ll know it became law on 18 December 2025 after a sometimes turbulent passage through Parliament. Now, we’re just days away from the first substantial changes taking effect, and they’re centred squarely on trade union and industrial action reforms.
For payroll and HR teams, 18 February 2026 marks the beginning of a significant shift in the employment landscape. While these changes may not affect every organisation immediately, understanding what’s coming is essential, particularly for unionised workplaces or those in sectors where industrial action is more common.
What’s changing on 18 February?
The reforms coming into force are designed to reduce administrative barriers to industrial action and strengthen employee protections. Here’s what you need to know:
1. Dismissal protection for industrial action
Previously, employees were protected from unfair dismissal for taking part in industrial action during a 12-week “protected period.” That limit is gone. From 18 February, dismissing an employee for participating in lawful industrial action will be automatically unfair, regardless of when the dismissal occurs.
What this means for employers
If you’re considering dismissing someone who has recently participated in strike action, you’ll need to be absolutely certain there’s a valid, unrelated reason for the dismissal. The burden of proof has effectively shifted, and tribunals will scrutinise these cases closely.
2. Industrial action ballots made easier
Several changes make it simpler for unions to organise and maintain industrial action:
- Notice period reduced: Unions now only need to give 10 days’ notice of industrial action, down from 14 days
- Support threshold removed: The requirement for 40% of eligible voters to support industrial action in important public services has been scrapped. A simple majority of those voting will suffice
- Longer mandate period: Successful ballots will now remain valid for 12 months instead of six, meaning unions won’t need to re-ballot as frequently
- Simplified ballot notices: Unions will only need to inform employers of the categories of employees balloted, their workplaces and the total number involved, streamlining administrative requirements
3. Picketing requirements relaxed
The obligation to appoint a picketing supervisor has been removed, further reducing the administrative burden on unions organising industrial action.
4. Political fund changes
New union members will now be automatically opted into contributing to their union’s political fund unless they actively choose to opt out. This reverses the previous opt-in approach introduced under the Trade Union Act 2016. Existing members who were opted out will remain so unless they choose otherwise.
Important note: The 50% turnout threshold for all strike ballots is also set to be repealed, but the government is waiting to assess the impact of electronic and workplace balloting (coming later in 2026) before finalising this change.
Why these changes matter
The February reforms represent the first concrete shift in the balance between employers and unions under the new Labour government’s “Plan to Make Work Pay.” While individual changes might seem procedural, collectively they signal a more union-friendly environment.
In practice, this means that Trade unions will find it easier to organise and sustain industrial action.
- Ballot mandates lasting 12 months instead of six give unions more flexibility in timing action.
- The removal of the 40% threshold in public services eliminates a significant hurdle that has prevented strikes in the past.
- Shorter notice periods mean employers will have less time to prepare contingency plans.
For unionised workplaces, particularly in sectors like education, healthcare, transport and local government, these changes could lead to an uptick in industrial action.
Even for non-unionised employers, it’s worth paying attention. The October 2026 reforms will introduce new rights for trade unions to access workplaces and communicate with workers, plus a duty on employers to inform all workers of their right to join a union.
What should employers do now?
Review your industrial relations strategy
If you’re in a unionised workplace, ensure your employee relations approach is strong. Open communication channels, transparent decision-making and genuine engagement with union representatives can prevent disputes from escalating to industrial action.
Update contingency plans
With shorter notice periods and longer ballot mandates, your business continuity plans need to be agile. Review and update plans for managing operations during potential strikes.
Train your managers
Make sure line managers understand they cannot dismiss or treat employees less favourably for participating in lawful industrial action. The penalties for getting this wrong just got steeper.
Document everything
If you do need to dismiss someone who has been involved in industrial action, meticulous documentation of the genuine, unrelated reason will be essential.
Stay informed. These February changes are just the first wave. April 2026 brings day-one statutory sick pay rights, extended parental leave rights and the launch of the Fair Work Agency. October 2026 introduces fire and rehire restrictions, extended tribunal time limits and further trade union rights. January 2027 reduces the unfair dismissal qualifying period from two years to six months.
