Services A-Z     Pricing

Reform of UK Employment Law: A 2026 guide for french employers in the UK

28 January 2026

As 2026 begins, the UK is entering a period of the most substantial reform of employment rights in a generation. The Employment Rights Act 2025 (“ERA 2025”) became law in December 2025, following extensive Parliamentary debate and marks a decisive shift in the balance between employers and workers. Overall, ERA 2025 represents a material strengthening of workers’ rights in the UK, bringing employment protections closer to European standards in several key respects.


Most reforms will be implemented on a phased basis, giving employers time to adapt, with further guidance and implementing regulations expected throughout 2026. For French employers with UK subsidiaries or branches, this transition period will be critical for risk management and compliance planning.

Two reforms introduced by ERA 2025 stand out as particularly significant. First, the government has committed to the removal of the statutory cap on unfair dismissal compensation, with implementation expected in 2027 following consultation. Once in force, compensation will be uncapped, significantly increasing the financial risk attached to dismissals, particularly at senior levels. Second, the qualifying service requirement for unfair dismissal claims will be reduced from two years to six months with effect from 1 January 2027. As a result, employees hired from mid‑2026 onwards will acquire protection much earlier than under the current regime. Together, these changes are expected to materially increase both the volume of claims and the potential value of awards, increasing employer exposure in relation to dismissals during probation and senior exits.

While the long‑term implications are substantial, we understand that the more immediate focus for employers is likely to be on the reforms coming into force during 2026.

Key Changes Effective from April 2026

1. Collective consultation: significant increase in financial exposure

The maximum protective award for failure to comply with collective redundancy consultation obligations will increase from 90 days’ pay to 190 days’ pay per affected employee. This significantly raises the financial consequences of procedural non-compliance in large-scale restructurings.

2. Day‑one rights for family‑related leave

Paternity leave and unpaid parental leave will become available from the first day of employment, removing existing minimum service requirements.

3. Statutory Sick Pay (“SSP”): wider eligibility and higher employer cost

SSP will be payable from the first day of sickness and the lower earnings limit for eligibility will be removed, meaning SSP will apply to a broader group of workers and become payable earlier.

4. Simplified trade union recognition process

The statutory process for trade union recognition will be simplified, making it easier for unions to secure formal recognition in the workplace.

5. Expanded whistleblowing protection for sexual harassment disclosures

Disclosures relating to sexual harassment will explicitly qualify as whistleblowing. Employees raising such concerns will benefit from enhanced protection against unfair dismissal and detriment.

Key Changes Effective from October 2026

1. Limits on “fire and re‑hire” practices

The use of dismissal and re‑engagement as a tool to impose changes to terms and conditions will be significantly restricted.

2. Strengthened trade union rights

Employers will be required to inform employees of their right to join a trade union both at the start of employment and at regular intervals thereafter. Trade unions will benefit from enhanced statutory rights of access to workplaces, enabling them to communicate more directly with employees.

3. Expanded employer duty to prevent sexual harassment

The existing duty on UK employers will be strengthened, requiring employers to take “all reasonable steps” to prevent sexual harassment. This places greater emphasis on proactive compliance measures, such as training, risk assessments, reporting mechanisms and management accountability.

4. New duty to prevent third‑party harassment

Employers will be under a new duty to take reasonable steps to prevent harassment of employees by third parties (including customers, suppliers and contractors), in relation to any protected characteristic.

5. Extended time limits for Employment Tribunal claims

The time limit for bringing most employment tribunal claims will increase from three months to six months, significantly extending the window for potential litigation. This change is likely to lead to an increase in claims and reduces the certainty employers currently obtain on expiry of the shorter limitation period.

Practical priorities for 2026

In light of the scale and pace of reform, French employers with UK operations should prioritise the following during 2026:

  • Review dismissal and restructuring procedures
    Probation, capability and redundancy procedures should be reviewed in light of the earlier acquisition of unfair dismissal rights and to ensure compliance with collective consultation obligations.
  • Audit contracts and HR policies
    UK employment contracts, employee handbooks and onboarding materials should be updated to reflect day one family leave rights, revised SSP rules, expanded whistleblowing protections, and the obligation to inform staff of the right to join a trade union.
     
  • Strengthen harassment prevention frameworks
    Employers should implement and document measures capable of demonstrating compliance with the enhanced duties to prevent both sexual harassment and third-party harassment, including targeted training, risk assessments, accessible reporting routes and properly documented investigations.
  • Plan for extended litigation timelines
    Internal limitation-period tracking, document retention and case-management practices should be adapted to reflect the extended six‑month time limit for most Employment Tribunal claims.

 

If you have any questions regarding this blog, please contact Clodagh Hogan in our Employment team.

about the author

Clodagh Hogan advises both companies and individuals on all aspects of employment law, in particular on how to manage and resolve the difficult employment problems that can arise in the workplace.

Latest blogs & news

UK Immigration: Settled status and earned settlement could not be more different

The UK government’s new “earned settlement” proposals reveal a stark divide in how people can secure their right to live permanently in the UK. For EU, EEA nationals and Swiss nationals and their families who were living in the UK before Brexit, the EU Settlement Scheme increasingly seems a beacon of fairness. For everyone else, the future looks far less certain—and much harder.

Reform of UK Employment Law: A 2026 guide for french employers in the UK

As 2026 begins, the UK is entering a period of the most substantial reform of employment rights in a generation. The Employment Rights Act 2025 (“ERA 2025”) became law in December 2025 following extensive Parliamentary debate and marks a decisive shift in the balance between employers and workers. Overall, ERA 2025 represents a material strengthening of workers’ rights in the UK, bringing employment protections closer to European standards in several key respects. 

Festive Insights

The festive season is a time for joy, connection, and celebration. Yet for employers, it also brings heightened risks. Work social events, whether Christmas parties, drinks after work, or team dinners, are legally considered an extension of the workplace. That means employers can be held liable for misconduct that occurs at these gatherings, even when no harm was intended.

Divorcing in England with pension assets in Switzerland

For many, the subject of pensions is one that is barely thought about until absolutely necessary. The same is certainly true in the context of divorce proceedings. Unless retirement is imminent, asking clients to think about pensions is a difficult concept for them to grasp. This is particularly true of clients who would be classed as the financially weaker party who may not have ever, or at least not for a long time, contributed to any form of private pension. Self-employed individuals can also find themselves in this same predicament. 

Parlez-vous pre-nup? A guide to English prenuptial agreements for Francophone couples

Francophone couples living in England or those who own assets here may be surprised at the differences between a standard English prenuptial agreement and the ‘contrats de mariage’ which are so common across continental Europe.

Franco-British Family Relationships: Top Tips à savoir

Family relationships involving international couples can be complex and the need for cross-border planning and an understanding of other jurisdictions is critical for family lawyers working in London. Claire Wood helps clients to understand some of the differences in approach across the channel. 

Anglo French prenuptial agreements – the myths of cross channel protection and the global prenup?

I am regularly asked to advise French and international couples on the protective agreements available to them before they marry.  They are often surprised to learn that it isn’t possible to draft a global prenuptial agreement which would be enforceable throughout the world, wherever the couple move to in the future.  

Will a UK Lasting Power of Attorney (“LPA”) be recognised in France?

As so many families that we advise now live across several countries, and particularly in France, we regularly get asked whether Lasting Powers of Attorney made in the UK and registered with the Office of the Public Guardian can be recognised in France.

A tale of two cities: 100 years of Family Law

It’s official: Les Jeux Olympiques have returned to Paris after 100 years. Paris is one of only three cities, along with London and Los Angeles, to have hosted the Olympic Games three times. After two weeks of sport, the Anglo-French rivalry is very much alive and almost too close to call; at the time of publication France are just ahead with 53 medals (including 14 gold), while Team GB has 51 medals (including 13 gold). 

Going your separate ways – matrimonial regimes, nuptial agreements and divorce

Perhaps the most common scenario that springs to mind when thinking of the impact of a matrimonial regime or nuptial agreement is in the event of divorce. The election of a matrimonial regime (if applicable) or creation of a bespoke nuptial agreement can have far-reaching consequences if a couple decides to separate later down the line. Anglo-French couples should certainly make themselves aware of the starkly different consequences that each option brings.

100 Years of EU Immigration in the UK

Immigration has long been a part of Britain’s history, however the concept of documenting and restricting certain migrants is relatively new - having first been introduced at the turn of the 20th Century.

Till death us do part – matrimonial regimes, nuptial agreements and inheritance

The importance of inheritance planning cannot be underestimated – failure to consider the succession and tax consequences that arise on the death of a spouse can lead to significant financial implications, at a time when emotions could already be running at an all-time high. Particularly in situations where there is a large amount of familial wealth, the earlier this is considered, the better, and marriage (and the election or not of a matrimonial regime, or creation of a bespoke nuptial agreement) is a good time to take stock and ensure your family is protected for the future.

French matrimonial regimes: the wide ranging impact for couples with Anglo-French connections

The concept of matrimonial regimes has become increasingly well known in England, having been a stalwart of the French marriage process for centuries. International clients and those with Anglo French connections are asking the right questions about French marriage contracts versus English prenuptial or postnuptial agreements more frequently, being more aware of the significant differences between the two and also the need for cross-border legal advice to ensure their interests are protected should they later choose to divorce.

The unintended consequences of the French PACS - mind the trap

The French Pacte Civil de Solidarité (PACS) is a contract entered into by two unmarried adults, of the same or opposite sex, which allows them to plan their life together. Registration of the civil union between the partners takes place at the town hall. The PACS contract can also be drafted by a notary so that the clauses of their contract are bespoke to their family and financial situation.

Mon contrat de mariage français sera-t-il toujours applicable si je divorce en Angleterre ?

Les couples français vivant en Angleterre sont souvent surpris d'apprendre que le régime matrimonial français qu'ils ont choisi lors de la signature de leur contrat de mariage français pourrait ne pas être appliqué par les juges anglais s'ils divorcent en Angleterre.

Will my French marriage contract still apply if I divorce in England?

French couples living in England are often taken aback to learn that the French matrimonial regime they chose when they signed their French marriage contract might not be applied by English judges if they divorce in England.

Vous êtes français et vous souhaitez travailler au Royaume-Uni ? Voici ce que vous devez savoir.

En tant que citoyens de l'UE, les français bénéficient de la libre circulation des personnes au sein de l'UE, ce qui signifie qu'ils ont le droit de vivre et de travailler dans n'importe quel État membre sans avoir à demander de visa. Maintenant que le Royaume-Uni a quitté l'UE, ce droit ne s'applique plus aux citoyens de l'UE qui viennent au Royaume-Uni.

Are you a French national looking to work in the UK? Here is what you need to know.

As EU nationals, French nationals enjoy free movement within the EU which means that they have the right to live and work in any member states without applying for a visa. Now that the UK has left the EU, this right no longer applies to EU nationals coming to the UK.

Le divorce anglo-français - les idées fausses et le jugement de Paris

Cela me rappelle le tableau du "Jugement de Paris", qui décrit le moment où d'éminents critiques de vin français, lors d'un test de dégustation, se sont rendus compte qu'ils avaient mieux classé les vins californiens que les vins français.

Montrez-moi l’argent – principales différences entre les demandes d’ordre financier françaises et anglaises dans le cadre d’une procédure de divorce

La requête en divorce a été déposée. L’on peut à présent se concentrer sur l’un des deux autres éléments essentiels d’une séparation, à savoir l’aspect financier. La procédure sur les mesures financières et la décision finale sont un facteur décisif dans le choix du lieu du divorce. De nombreux clients supposent que les procédures en Angleterre et en France sont similaires. Cela n’est pourtant pas le cas.  

Skip to content Home About Us Insights Services Contact Accessibility