Employment Rights Act: Businesses urged to prepare, not panic

Rudy Fendlen, WHN.png.png

Businesses with strong employment practices should not fear upcoming changes to employment law, but instead use the coming months to review policies, strengthen record-keeping and prepare for further reforms, according to a leading Lancashire employment law specialist.

The Employment Rights Act 2025, which strengthens employees’ rights in the UK, received Royal Assent in December 2025, and a variety of new measures are being introduced throughout 2026 and into 2027.

Rudy Fendlen, head of employment law at Woodcock Haworth and Nuttall (WHN) Solicitors, described the changes as ‘important’ but stressed the risk of the legal industry overstating their practical impact on many employers. 

He said understanding the updated legislation would allow companies to adopt a ‘prevention, rather than cure’ approach.

Rudy said: “There are important changes to take note of, but I see a passing shower rather than a storm. In truth, for businesses that already have strong employment practices in place, the impact is likely to be less than feared.

“The businesses best placed to navigate them will be those that understand what is changing, review their policies and procedures accordingly, and address potential problems before they become disputes. When claims do arise, good records are often the difference between successfully defending an Employment Tribunal claim and losing one.”

The Act is being introduced in a phased approach, with several measures now already in effect. This includes a strengthening of trade union rights in February, in addition to several changes from April such as the introduction of day one Statutory Sick Pay for employees and removal of the £125 per-week lower earnings limit.

Employees also gained day-one rights to paternity leave and unpaid parental leave from April, and several reforms around sexual-harassment whistleblowing and Bereaved Partners’ Paternity Leave have also come into force. A new Fair Work Agency, which brings together the enforcement of a range of employment rights under one body, came into operation too. 

Further changes are set to take effect over the coming months, including an increase in the time limit for bringing most Employment Tribunal claims, from three to six months, and a strengthening of sexual harassment and third-party harassment provisions.

In January 2027, the qualifying period for ordinary unfair dismissal reduces from two years to six months. Further changes in 2027 include new rights for workers on zero-hours and certain low-hours contracts, including rights to guaranteed hours, reasonable notice of shifts and compensation for certain cancelled shifts. and a new statutory right to bereavement leave.

Rudy pinpointed the changes to unfair dismissal legislation, which mean employees who have worked for an organisation for six months or more will be able to bring an unfair dismissal claim, as a prime example of how employers with strong employment policies ought not to worry.

Rudy added: “While employees will have the right to claim after just six months’ employment, instead of two years, fundamental principles remain. Employers will still need a fair reason and a fair process. Well-managed probation periods and effective performance management are going to be key.”

He also explained how the Act’s implementation has impacted the approach of both employers and employees, when it comes to bringing employment relationships to an end.

“Over time we may see an increase in Employment Tribunal claims, as employees will have more time to bring them, but a trend I have noticed over recent months is greater use of settlement agreements, alongside a rise in employee exits,” Rudy said. “It suggests both employers and employees are adopting a more proactive approach towards concluding employment relationships.”

Other legislative changes being introduced through the Employment Rights Act include mandatory gender equality action plans for larger employers, including measures relating to gender pay reporting and menopause, further flexible working reforms, new rules regulating umbrella companies and restrictions on certain non-disclosure agreement provisions relating to workplace harassment and discrimination. 

Rudy added: "Businesses should ensure they understand what is changing and when and seek advice as early as possible to make compliance far easier. It will be crucial to maintain proper documentation relating to performance, conduct, absence, grievances and disciplinary processes.

“Since the Act received Royal Assent last December, we have been working closely with our clients to prepare for these changes. Many of them, therefore, have already updated their policies and procedures, and are engaging with employees to prevent potential issues arising.”

Rudy joined WHN to lead the firm’s employment law service this summer, bringing a decade of legal expertise - including around four years advising owner-managed businesses on the full range of employment law issues.

Enjoyed this? Read more from Woodcocks Haworth & Nuttall Solicitors

Latest news

1

Burnley shortlisted for £20,000 Let's Celebrate Towns grant Burnley Bid Street Cleaning

Burnley shortlisted for £20,000 Let's Celebrate Towns grant

13 Nov 2026

2

Universities and civic authorities unite to improve opportunities in county Eaf91ac1fe464d1580d6b0eae8307284

Universities and civic authorities unite to improve opportunities in county

13 Nov 2026

3

Lancashire business leaders among 27 for '27 Northern Stars Fourimagetemplatecomplete

Lancashire business leaders among 27 for '27 Northern Stars

12 Nov 2026

4

Profits flow at United Utilities United Utilities Watto Photos / Shutterstock.com

Profits flow at United Utilities

12 Nov 2026

5

BAE Systems order book hits £33bn bae-systems-samlesbury.jpg

BAE Systems order book hits £33bn

12 Nov 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV131 November/December Magazine Networking Event
LBV131 Magazine Launch Social720No Text 19 Nov 2026

LBV131 November/December Magazine Networking Event

The Landmark, School Lane, Burnley, BB11 1UF

08:30 - 10:30

Lancashire Business Day 2026
LBD26 WW Logo720 27 Nov 2026

Lancashire Business Day 2026

Burnley Football Club, BB10 4BX

12:00 - 17:00

Sub36 Reunion & Networking
03 Dec 2026

Sub36 Reunion & Networking

Burnley Football Club, BB10 4BX

15:00 - 17:00

Lancashire Net Zero Conference 2027
NZC27 Social 1200x800Generic 1 11 Feb 2027

Lancashire Net Zero Conference 2027

The Wellbeing Farm, Edgworth, Wheatsheaf Hill Farm, Plantation Road, BL7 0BY

09:30 - 02:00

Help to Grow: Management Course
Help To Grow 25 Sep 2026 - 15 Dec 2026

Help to Grow: Management Course

University of Lancashire, Preston, PR1 2HE

09:30 - 12:00

Lancaster District Business Support Expo
Lancaster And Morecambe Logo 1 18 Nov 2026

Lancaster District Business Support Expo

The Platform, Morecambe, LA4 4DB

09:00 - 13:00

Great Winter Pie & Pea Social
Lancaster And Morecambe Logo 1 19 Nov 2026

Great Winter Pie & Pea Social

The Royal Hotel & Bar, Lancaster, LA1 1YD

17:30 - 20:00

Neurodiversity at Work - A Free Event
Event graphic 1200x800@1x.png.png 20 Nov 2026

Neurodiversity at Work - A Free Event

Lancashire FA, Leyland , PR252LF

09:30 - 12:30

Neurodiversity Awareness and Support Training
20 Nov 2026

Neurodiversity Awareness and Support Training

Neuro Spark Training Solutions, Burnley , BB11 2AS

09:00 - 16:00

Degree Apprenticeship Careers Fair
LBV Website Events GraphicCareers Fair 21 Nov 2026

Degree Apprenticeship Careers Fair

University of Lancashire, Foster Building, Preston, PR1 2HE

09:00 - 15:00

Freelancer Meet-Up: November
 Freelancer Meet-Up Square NOV.png.png 24 Nov 2026

Freelancer Meet-Up: November

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Seriun Cyber Round Table
Seriun-Roundable-3.png.png 25 Nov 2026

Seriun Cyber Round Table

Albert’s Standish, School Ln, Standish, Wigan, WN6 0TD

11:00 - 14:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV130 Online GraphicWebsite
Subscribe now

Weekly news bulletin