As organisations prepare for the first wave of the single biggest set of changes in employment law in decades, new data from Brightmine reveals that, while HR teams recognise the scale of the reforms required by the Employment Rights Act, many are underestimating the breadth of measures that will reshape the employment landscape.
The majority of surveyed HR professionals (60%) believe that changes to unfair dismissal rules will have the greatest effect on their organisation. However, other substantial reforms taking effect from late 2026, including restrictions on fire and rehire practices, new third-party harassment duties, and enhanced union access rights, will also create major operational, legal and financial implications for employers.
Key areas HR professionals anticipate will impact their organisations:
- 60% say unfair dismissal changes will have the biggest impact
- Statutory sick pay changes concern almost a fifth (18%) of respondents
- 9% point to new trade union rights
- 6% highlight third-party harassment liability
- 4% say fire and rehire reforms will have the greatest effect
Stephen Simpson, Principal Editor at Brightmine, says: “As we move closer to implementation of the Employment Rights Act, HR teams are right to flag unfair dismissal as a major area of change. The reduction of the qualifying period to six months and the removal of the cap on unfair dismissal compensation will significantly increase litigation risk and settlement expectations.
But unfair dismissal is only part of the picture. From October 2026, employers will also face stricter limits on fire and rehire, making it automatically unfair to dismiss employees who refuse certain contractual changes. At the same time, new third-party harassment duties will require employers to take all reasonable steps to protect employees from harassment.
Add to this the introduction of union access rights which allows unions to require physical or virtual access to workplaces even where employees are not unionised, the combined effect is that employers will have much less room for manoeuvre than they currently have. These overlapping reforms will reshape day to day HR practice, increase the risk of getting decisions wrong and will require significant preparation throughout 2026.
The key message is clear, employers cannot wait until late 2026 to act. HR teams should be reviewing dismissal procedures, assessing contractual flexibility, strengthening harassment prevention measures, and planning for increased union engagement now. Those who delay risk significant legal and financial consequences.”
Methodology:
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1800 HR professionals surveyed
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Conducted in January 2026
