This timeline sets out the key employment law developments affecting employers in England and Wales for the period from 6 April 2026. It covers changes arising from the Employment Rights Act 2025 ("ERA 2025"), annual statutory rate upratings and other legislative and regulatory reforms. Where an exact date has not been confirmed, an expected date or quarter is indicated.
Employers should note that several reforms remain subject to further government consultation and secondary legislation. This timeline will therefore be updated as further details are confirmed.
Protection from unfair dismissal will become a right after six months of continuous employment, reduced from the current two-year qualifying period.
This applies to dismissals on or after 1 January 2027.
The original proposal to make unfair dismissal a day-one right was amended before the ERA 2025 received Royal Assent.
The statutory cap on the compensatory award for unfair dismissal (currently £123,543) will be removed.
Compensation will instead reflect full financial loss in qualifying cases, subject to the usual principles of mitigation and contributory fault.
This significantly increases the potential financial exposure for employers in unfair dismissal claims, particularly for higher-paid employees.
Dismissing an employee and rehiring them on worse terms and conditions ("fire and rehire") will become an automatically unfair dismissal in most cases.
An exception will apply where the employer can demonstrate that the change was necessary to prevent the business from collapsing.
An updated code of practice to support these changes is expected in 2027. This reform was originally expected in October 2026 but was pushed back to January 2027.
Most of these changes are subject to the outcome of government consultations and secondary legislation. Exact dates in October 2026 are yet to be confirmed and more detail will be provided in due course. The changes include:
Trade union members will be able to vote electronically or in person in statutory ballots for industrial action, union elections and other statutory ballots, where the employer and trade union agree. The removal of the requirement for a 50% turnout for industrial action ballots can begin following introduction of electronic balloting.
Practical Impact of Reduced Qualifying Period for Unfair Dismissal
Although the reduction in the unfair dismissal qualifying period does not take effect until 1 January 2027, it applies to employees already in employment at that date.
This means that anyone hired from the end of June 2026 onwards will have accrued six months' service by January 2027 and will therefore gain unfair dismissal protection from that date.
Employers should factor this into recruitment and probation decisions from mid-2026.
The Fair Work Agency ("FWA") was formally established on 7 April 2026, with Matthew Taylor CBE appointed as its first chair.
The FWA consolidates the functions of existing enforcement bodies, including the Gangmasters and Labour Abuse Authority and the Director of Labour Market Enforcement.
It will take on enforcement of employment rights such as National Minimum Wage, holiday pay and SSP.
The FWA's full enforcement powers will be rolled out over the course of 2026 and beyond as the body becomes fully operational.
The Vento bands for injury to feelings awards in discrimination and whistleblowing claims have been updated:
| Band | Rate from 6 April 2026 |
| Lower band (less serious cases) | £1,300 – £12,600 |
| Middle band | £12,600 – £37,700 |
| Upper band (most serious cases) | £37,700 – £62,900 |
| Exceptional cases | Exceeding £62,900 |
The updated bands apply to claims presented on or after 6 April 2026.
Annual increases to employment tribunal compensation limits have taken effect:
| Limit | Rate from 6 April 2026 |
| Statutory cap on a week's pay | £751 |
| Maximum basic award (unfair dismissal) | £22,530 |
| Maximum compensatory award (unfair dismissal) | £123,543 (or one year's gross pay if lower) |
| Maximum statutory redundancy pay | £22,530 |
| Minimum basic award (certain automatically unfair dismissals) | £9,157 |
NOTE: This is expected to be the last increase to the compensatory award cap, as the cap is due to be removed from 1 January 2027 under the ERA 2025.
For more detail, see here.
New minimum wage rates came into force from 1 April 2026, following recommendations from the Low Pay Commission. The updated rates are as follows:
|
Category |
Rate from 1 April 2026 |
|
National Living Wage (aged 21+) |
£12.71 per hour |
|
18–20 Years Old |
£10.85 per hour |
|
16–17 Years Old |
£8.00 per hour |
|
Apprentice Rate |
£8.00 per hour |
|
Accommodation Offset |
£11.10 per day |
Disclaimer: This timeline is intended as a general guide only and does not constitute legal advice. It reflects information publicly available as at April 2026. The implementation dates for several of the reforms listed remain subject to parliamentary progress, consultation outcomes and secondary legislation. Please seek legal advice from our Employment team for any specific questions and for a more detailed timeline document on The Employment Rights Act 2025, please email.