The rebirth of the social partnership

The world of work in 2026

As we step into 2026, the world of work is undergoing significant transformation. Workplace practices and behaviours have been transformed by our lived experiences during the covid pandemic, as well as technological and demographic changes.

Two major developments will shape the year ahead: Landmark reforms under the Employment Rights Act 2025 and new research revealing record levels of workplace conflict. Both signal a critical moment for employers, HR professionals, and trade unions to prepare for change.

The rebirth of the social partnership

At Acas, these developments give us the opportunity to work with social partners. These include ministers, trade unions and business representative bodies, as well as academics and campaigners. Together, we can look at the upcoming changes and ensure they work well for everybody. The goal is to create a new industrial relations culture with a focus on fairness and economic growth.

This culture shift or rebirth of the social partnership means that:

• businesses, workers and trade unions treat each other with respect, improve negotiation skills and trust in one another to achieve mutual benefits
• the interests of each of these groups are balanced, with each accountable for economic growth, improved productivity and better working lives
• this shift of culture and increased trust enables trade unions, employers and workers to seek shared outcomes, where industrial action is seen as a last resort only

Major Employment Rights Act reforms

The Employment Rights Act received Royal Assent on 18 December 2025, heralding a phased rollout of transformative legal changes throughout 2026 and 2027.

The breadth of these measures underscores the importance of staying informed and prepared, which is where Acas can help.

In January 2026:

• we plan to open consultation on a draft update to our Code of Practice on time off for trade union duties and activities. If you want to find out more about this, or feed in thoughts and ask questions at a stakeholder roundtable in early February, please email acasmatters@acas.org.uk

From February 2026:

• automatic unfair dismissal protection for participation in industrial action (beyond current 12-week limit)
• streamlined rules for industrial action notices, ballots, and picketing

From April 2026:

• statutory sick pay (SSP) from day one of sickness (instead of day four)
• removal of minimum earnings threshold for entitlement to SSP and several family leave payments
• extended statutory paternity leave and expanded shared parental entitlements

Late 2026 to early 2027:

• removal of the unfair dismissal compensation cap
• reduction of the qualifying period for unfair dismissal claims from two years to six months, effective 1 January 2027
• new protections covering sexual harassment, flexible working rights, protection from ’fire and rehire’ practices, and extended tribunal claim time limits (increasing from 3 months to 6 months)

The government plans to implement the Employment Rights Act in stages over the next 2 years or so. Further consultation and Parliamentary approval on the details of the Act will follow before many of the reforms in the Act come into effect.

Get the latest news and updates on the Employment Rights Act.

New research: conflict in Great Britain at record high

In November 2025, we published our most robust survey yet on workplace conflict, revealing:

• 44% of workers reported experiencing conflict in the past 12 months—the highest figure ever recorded
• retail workers reported the highest incidence (50%), with those in smaller employers more likely to experience conflict and less likely to act on it
• evidence strongly supports the need for early prevention, effective informal resolution, and skilled managerial intervention as core strategies to address conflict

In 2026, we will be publishing updated evidence on the annual economic cost of workplace conflict. The last piece of research on this (from 2018 to 2019) estimated a £28.5 billion cost to organisations each year. Without pre-empting the findings, I expect the new number to be higher.

Acas in 2026

The focus for 2026 at Acas will be across 4 areas:

• we will support businesses to adapt and stay informed on new legal rights and protections under the Employment Rights Act to prevent conflicts from arising
• we will translate research into practice, ensuring employers and advisors have the tools and training to manage rising conflict levels in their workplaces
• we will enhance early dispute resolution services, building on our success in high settlement rates and bringing down the volume of cases which aren’t suitable for conciliation. We will also work with government and stakeholders to develop new mechanisms for earlier, speedier and fair resolution
• we will roll out new technologies to help Acas's people support businesses, trade unions and workers more effectively

In addition, we will also continue to provide advice to workers, employers, and trade unions on reducing conflict at work.

Our social partners are critical to navigating these developments and addressing the global challenges. Your partnership is invaluable as we shape workplaces that are fair, inclusive, and resilient in the year ahead.

I am energised and excited about the possibilities and look forward to continuing to work together with you in making working lives better for everyone.