By Paul Chappell

4th February 2026

Employment Rights Act 2025 -critical changes taking effect 18 February 2026

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.

Author

Frequently asked questions related to this blog

What changed on 18 February 2026 for industrial action dismissals?

The 12-week “protected period” is gone. Dismissing someone for taking part in lawful industrial action is automatically unfair whenever it happens. If you dismiss someone who recently struck, you need a clear, valid reason unrelated to the action. Tribunals will look at those cases closely.

How have industrial action ballots become easier for unions?

Notice of industrial action drops from 14 days to 10. The 40% support threshold for important public services is removed; a simple majority of those voting is enough. Successful ballots stay valid for 12 months instead of six, so unions re-ballot less often. Ballot notices only need categories of employees, workplaces, and total numbers involved. The duty to appoint a picketing supervisor is removed. The 50% turnout threshold for strike ballots is still due for repeal, but the government is waiting to see how electronic and workplace balloting (later in 2026) lands first.

What changed on union political funds?

New members are automatically opted into the union’s political fund unless they opt out. That reverses the Trade Union Act 2016 opt-in. Existing members who already opted out stay opted out unless they change their mind.

Who should pay most attention?

Unionised workplaces, especially education, healthcare, transport, and local government, where industrial action may rise. Non-unionised employers still need to watch October 2026 reforms: union access to workplaces, rights to communicate with workers, and a duty to tell all workers they can join a union.

What should employers do now?

Strengthen employee relations where you’re unionised: clear communication and genuine engagement with representatives. Update contingency plans for shorter notice and longer ballot mandates. Train managers not to dismiss or treat people less favourably for lawful industrial action. If you must dismiss someone who’s been involved, document a genuine unrelated reason carefully. February is only the first wave: April 2026 brings day-one SSP, extended parental leave rights, and the Fair Work Agency; this piece also flags October 2026 for fire-and-rehire restrictions, longer tribunal time limits, and further union rights; January 2027 for unfair dismissal falling from two years to six months.

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