Key employment law updates | January 2026

Welcome to our monthly update, where we share upcoming changes to employment law.

Tribunal delays deepen: what employers must prepare for

HMCTS has released the minutes from the October 2025 Employment Tribunal National User Group meeting.

There are currently over 52,000 outstanding claims, and in some regions hearings are now being listed as far ahead as 2029.

The meeting highlighted the significant pressure facing the tribunal system. The Group, which meets two to three times a year to review policy, administrative matters and judicial operations, discussed several key issues, including:

Tribunal demand/wait times:

Many regions are now listing shorter hearings for the first half of 2026, while areas such as Bristol, Southampton and parts of the South West are already moving into the second half of 2026. In London South, shorter cases are being listed into early 2027, and the most complex 10‑day hearings are being pushed as far out as 2028–2029. These delays reflect both the rising volume and growing complexity of claims. Recent published data also shows a clear trend: disability discrimination is now the most common discrimination claim issued in the Employment Tribunals.

Judicial recruitment on the rise:

There are currently two significant Judicial Appointments Commission campaigns in progress: one aimed at appointing approximately 36 salaried judges (primarily across London and the South East) and another looking to recruit around 150 non‑legal members.

Steady high demand for Acas:

ACAS has seen a 26% jump in early conciliation requests, driven largely by discrimination cases, which has contributed to the early conciliation window doubling from 6 to 12 weeks in December 2025.

As litigation risks rise and tribunal backlogs grow, proactive management is key. Resolve tensions before they escalate, ensure your grievance processes are watertight, and build a clear, well-documented strategy for handling contentious exits. The goal isn't just legal protection, it's maintaining trust, control, and business continuity.

New year, new rules: ERA 2025 takes off

Just like that, the Employment Rights Bill has transformed into the Employment Rights Act 2025 – dropped right before Christmas and paving the way for the most significant shake‑up to UK employment law in decades. While a handful of reforms took effect immediately, most changes will be phased in across 2026 and 2027. To help you stay ahead, we’ve pulled everything together into a clear, date‑ordered overview, covering everything from the scrapping of strike‑related rules to major updates on unfair dismissal, sick pay, fire‑and‑rehire restrictions, and the launch of the new Fair Work Agency, along with practical next steps for employers.

Please read our recent article for further information on the Employment Rights Act.

Clarity emerging? Government release updated factsheets on Employment Rights Act 2025

The Government has released an updated factsheet on the Employment Rights Act 2025, which forms a central part of its Plan to "Make Work Pay". As you will all be aware, the Employment Rights Act 2025 brings some of the biggest changes to employment law in years, and the Government’s factsheet offers early clarity on what’s coming.

Unmissable unfair dismissal takeaways

As many of you will know, the Employment Rights Act 2025 (which received Royal Assent on 18 December 2025) introduces sweeping reforms across the employment landscape, with the unfair dismissal changes standing out as particularly significant. From 1 January 2027, employees will only need six months’ service to bring an unfair dismissal claim, a major shift from the current two‑year requirement. In practice, anyone hired now will reach qualifying service far sooner, and anyone joining from July 2026 will acquire unfair dismissal protection just six months into the role. This places renewed emphasis on robust recruitment processes, well‑run probationary periods and clear early performance management, ensuring employers are confident they have the right person in post.

Just as important is the decision to remove the cap on unfair dismissal compensation. At present, compensation is limited to the lower of a year’s pay or £118,223, but from 2027 awards will be uncapped, aligning unfair dismissal with whistleblowing and discrimination claims. This represents a substantial increase in potential financial exposure, particularly for senior or highly paid employees, and will inevitably influence litigation risk and settlement dynamics.

These reforms signal a clear shift: more claims, greater financial exposure and harder fought deputes - especially at senior level. Now is the time for employers to revisit internal procedures, strengthen probation and performance management frameworks, and ensure managers are fully equipped with the tools and confidence to act early, fairly and decisively.

If you would like support reviewing your processes or preparing for these changes, please do get in touch.

Industrial action changes coming as early as 18 February 2026

Certain changes affecting Trade Unions under the Employment Rights Act 2025 will come into effect as early as 18 February 2026. These reforms will make it easier for unions to initiate and maintain industrial action, while offering greater protection to employees who participate.

Key changes include:

• Stronger dismissal protection – dismissing an employee for taking part in lawful industrial action will become automatically unfair.
• Rolling back the Trade Union Act 2016 – many of the 2016 restrictions will be removed, significantly simplifying the industrial action framework.
• Shorter notice periods – unions will only be required to give 10 days’ notice of strike action (reduced from 14).
• Extended strike mandates – ballot results will remain valid for 12 months rather than 6, supporting longer-running action without repeated ballots.
• Streamlined ballot and action notices – unions will need to provide less detailed information when notifying employers.
• Simpler thresholds – industrial action will need only a simple majority of votes cast, removing current turnout requirements.
• Removal of picket supervisor requirement – unions will no longer need to appoint an official supervisor for picketing.

In summary, these reforms significantly reduce the procedural barriers to industrial action while enhancing legal protection for employees who strike. Employers must be prepared for faster-moving disputes, longer-lasting mandates, and more confident union activity. A proactive response is essential: review contingency plans, communication strategies and industrial relations policies ahead of February.

Available training for managers

Given the significant changes due to be brought about by the Employment Rights Bill, there is no better time to upskill your managers via our transformational management development programmes to reduce risk, increase engagement, and enhance motivation.

Our programmes involve utilising unique accelerated learning techniques that will boost people management skills for years to come, suitable for supervisors up to board level. 

Furthermore, our seamless programmes link in with your policies and templates to bring about impactful change (with practical templates to bring your policies to life, if required). We link below further information on four of our flagship programmes:

Details of our current programmes are as follows:

• 21st Century: An innovative four-day management development programme designed to equip managers with essential skills, knowledge, and behaviours to effectively manage performance and improve workplace culture.
• Gender Diversity: We know that managers and employees lack confidence talking about gender diversity and managing a diverse workforce. That is why we've created this bespoke training programme to help you get ahead and shape your culture.
• Inclusive Leadership: We may not notice our unconscious biases, but they still influence our actions and beliefs. For leaders, it is crucial to recognise those biases and lead inclusively which is the focus of our one-day Inclusive Leadership programme.
• Prevention of Sexual Harassment: With a duty to take proactive steps to prevent sexual harassment (such as training) introduced last year, it is more important than ever to act. This programme equips your workforce with the tools needed to identify and take conscious steps to prevent workplace sexual harassment.
• Upskill Managers to Manage: We can support you to navigate the challenges of integrating teams effectively to maximise post-integration success, emphasising the need for strong management, strategic alignment, and collaboration to overcome cultural differences and mitigate risks in an increasingly competitive market.
• Improve Employee Heath & Resilience: Improving the health and wellbeing of your people is a key requirement to driving a successful business. By educating employees on health and wellbeing strategies, we can help you to gain the competitive edge as your people improve their energy, productivity and overall wellbeing. Our wellbeing programmes deliver educational, fun and interactive sessions that are empowering and revealing.

Please contact Joanne Boyle, Legal Director, if you would like to discuss further how we can support your organisation.