Employment law reform – what HR teams should prioritise

Employment law reform is now a live programme of change. Some rights are already in force, with more expected during 2026 and 2027. HR teams should focus on practical preparation:

• updating policies
• improving record keeping
• supporting line managers
• communicating clearly with staff

Earlier this month I spoke about employment law reform and what it means for employers. The Employment Rights Act 2025 is one of the most significant changes to employment law in recent years. It brings new rights for workers and new responsibilities for employers.

Handled well, reform can help organisations build better employment relations. It can support trust, improve engagement and prevent problems becoming formal disputes. That matters because workplace conflict is already common. Recent Acas research found that 44% of working age adults in England, Scotland and Wales experienced conflict at work in the previous 12 months.

The Acas 2025 to 2030 strategy sets out our role in helping employers and workers prevent, manage and resolve workplace conflict. Employment law reform should be seen in that context. It is not only about legal compliance. It is also about creating organisations where people understand their rights and responsibilities, and where issues are dealt with early and fairly.

For HR teams, the priority is to turn a complex programme of reform into clear action.

Understand what has already changed

The Employment Rights Act 2025 became law on 18 December 2025.

Changes are being introduced in phases through 2026 and 2027, so employers should keep checking the latest guidance.

Several changes are already in force. Statutory sick pay is now available from the first day of sickness absence for eligible workers, and the lower earnings limit has been removed. Paternity leave and unpaid parental leave are now day one rights. There is also new bereaved partner's paternity leave, and stronger whistleblowing protection for workers who report sexual harassment.

Employers should already have reviewed sickness, family leave and related policies. They should also check payroll processes, manager guidance and staff communications. A key point is that day one leave rights do not always mean day one pay rights. Organisations need to explain the difference clearly, so employees know what they can request and what pay they may be eligible for.

Other reforms are still to come, including changes on:

• unfair dismissal
• harassment
• flexible working
• zero-hours contracts

This means employers need to plan in stages, rather than treat reform as one single change with one start date.

A useful starting point is to map the reforms against your policies, contracts, systems and manager responsibilities. This will help you identify what needs immediate action and what needs design work now because it will affect recruitment, contracts, performance management or dismissal decisions in 2027.

Prepare for stronger enforcement

The compliance environment is also changing. The law is expanding rights and strengthening enforcement. The Fair Work Agency brings together enforcement activity and will have powers to support compliance and uphold workers' rights.

Employers must also keep adequate records to show they have complied with holiday pay and annual leave rules. These records need to be kept for 6 years from the date they were made.

For HR teams, this means good record keeping will matter even more. Clear audit trails, consistent decision making and accurate records can help organisations show how decisions were made and reduce the risk of avoidable disputes.

What HR teams can do now

Employers do not need to wait for every final detail before acting. There are practical steps HR teams can take now.

First, know the timeline. Separate what has already changed from what is expected later. Second, prioritise policy and contract review, especially sickness, family leave, flexible working, harassment, dismissal and records. Third, train line managers. They need to understand the processes they are expected to follow and feel confident having early, fair and consistent conversations.

Finally, strengthen your compliance systems. Review how decisions are recorded, how evidence is kept and how employees are told about their rights. Clear communication can prevent misunderstanding and help build trust.

The right approach is to prepare in stages, build capability and use the time available to strengthen policies, processes and management confidence.

Acas will continue to update guidance as changes come into force. We are here to help employers and workers prevent, manage and resolve workplace problems.

Advice from Acas

For more information you can:

• find out more about the Employment Rights Act 2025 changes
• register and watch our free Employment Rights Act 2025 webinar