UK Employment Rights 2026: Complete Guide

UK employment law sits on several overlapping statutes, ACAS codes of practice, and contractual terms. For employees, understanding which rules apply to their situation can be genuinely complicated, especially when major reforms are in progress. The Employment Rights Bill 2024-25 is the largest overhaul of UK employment law in a generation, and several of its provisions take effect in 2026.

This guide covers the key rights that apply to employees working in England, Wales, and Scotland under UK law, from the moment they start a new job through to redundancy or resignation. It explains the relevant legislation, the institutions that enforce it, and the changes you should be aware of this year.

> QUICK ANSWER: UK employees have statutory rights under the Employment Rights Act 1996, the Equality Act 2010, and the Working Time Regulations 1998, among other legislation. From April 2026, unfair dismissal protection applies from day one of employment (removing the two-year qualifying period). Annual leave is 28 days for full-time workers, SSP is £116.75 per week, and redundancy pay is calculated on age, service, and capped weekly pay. ACAS handles disputes before tribunal claims.

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The Legal Framework: Key Statutes

UK employment law is not codified in a single document. Rights and obligations are spread across multiple Acts of Parliament and statutory instruments:

Employment Rights Act 1996 (ERA 1996) is the core statute. It covers unfair dismissal, wrongful dismissal, redundancy, written particulars of employment, notice periods, and the right to receive an itemised pay statement. Most litigation in employment tribunals involves ERA 1996 claims.

Equality Act 2010 consolidates anti-discrimination law. It protects employees and job applicants from discrimination based on nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Direct discrimination, indirect discrimination, harassment, and victimisation are all prohibited.

Working Time Regulations 1998 (WTR) implement the EU Working Time Directive. They set maximum weekly working hours (48 hours average, which can be opted out of by written agreement), minimum rest breaks, minimum daily and weekly rest periods, and the 28-day paid annual leave entitlement.

National Minimum Wage Act 1998 requires employers to pay at least the National Living Wage (for workers aged 21 and over) and the National Minimum Wage (for younger workers). For the full breakdown of current rates, see our [UK minimum wage 2026 guide](/en/blog/uk-minimum-wage-2026-complete-guide).

TUPE 2006 (Transfer of Undertakings Protection of Employment) protects employees when a business or service is transferred to a new employer. Their terms and conditions transfer with them and they cannot be dismissed solely because of the transfer.

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The Employment Rights Bill 2024-25: What Changes in 2026

The Employment Rights Bill, introduced in October 2024, represents the most significant reform to UK employment law since the ERA 1996 itself. Several provisions are expected to come into force in 2026, though precise commencement dates for each measure are still being confirmed.

Day-One Unfair Dismissal Protection

The most significant individual change is the extension of unfair dismissal protection to all employees from the first day of employment. Previously, employees had to accumulate two years of qualifying service before they could bring an unfair dismissal claim. From April 2026, that qualifying period is removed.

Employers will retain the right to run a statutory probationary period during which a lighter-touch fair dismissal process applies. The government has indicated an initial period of nine months, though this is subject to secondary legislation. The key point is that employees dismissed during a probationary period will still have recourse to a tribunal if the process was not followed correctly.

Flexible Working as a Default Right

The Bill strengthens the right to request flexible working, making it a day-one right (already brought in by the Employment Relations (Flexible Working) Act 2023) and placing a higher burden on employers to justify refusals. Employers must now consult with employees before refusing and must provide clearer written reasons.

Strengthened Union Rights

The Bill introduces new obligations on employers in relation to trade union recognition, collective bargaining, and industrial action. This includes removing minimum turnout thresholds for strike ballot validity and restoring union access rights to workplaces.

Zero-Hours Contract Reforms

Workers on zero-hours or low-predictability contracts will gain new rights, including the right to request a guaranteed-hours contract after an initial period and the right to reasonable notice of shifts and cancellations.

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Annual Leave and Working Time

Under the Working Time Regulations 1998, full-time employees are entitled to 5.6 weeks of paid annual leave per year. For a standard five-day working week, this equals 28 days.

The 28-day entitlement includes bank holidays. England and Wales have 8 public bank holidays per year. Whether bank holidays are automatically included in your 28-day entitlement or are additional to it depends on your contract. Many employment contracts specify that bank holidays are included within the 28-day total, but some employers grant them on top.

Part-time workers receive a pro-rata entitlement. A worker doing three days per week is entitled to 3/5 of 28 days = 16.8 days per year.

Holiday pay must reflect your normal remuneration, including regular overtime and commission, following the Supreme Court's ruling in Harpur Trust v Brazel [2022] and subsequent legislation. If your pay varies, your holiday pay should be calculated on an average of your earnings over the 52 weeks before your holiday.

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Notice Periods

The ERA 1996 sets minimum statutory notice periods. These are:

• •Less than one month of service: no statutory minimum (but contractual terms may apply)
• •One month to two years of service: one week
• •Two years or more: one week per complete year of service, up to a maximum of 12 weeks

These are minimum figures. Your employment contract will usually specify longer notice periods, particularly for senior roles. The contractual period takes precedence, provided it is not shorter than the statutory minimum.

During the statutory notice period, you are entitled to receive your full normal weekly pay even if the work is variable. This is called a statutory notice payment and is a separate entitlement from contractual notice.

If an employer dismisses you without giving the correct notice (and without making a payment in lieu of notice under the contract), you can claim wrongful dismissal in an employment tribunal or civil court.

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Statutory Sick Pay

Statutory Sick Pay (SSP) is the minimum sick pay that employers must pay to qualifying employees who are off sick. The rate from April 2025 is £116.75 per week.

Currently, SSP is paid from the fourth day of sickness absence. The first three days are called waiting days and are unpaid at the statutory level (though your contract may provide for full pay from day one). The Employment Rights Bill proposes removing the three waiting days, so SSP would begin from the first day of absence.

To qualify for SSP you must:

• •Be classed as an employee
• •Have average weekly earnings of at least £123 (the lower earnings limit)
• •Have been off sick for at least four consecutive days (including non-working days)

SSP is payable for up to 28 weeks. After that, you may be able to claim Universal Credit or other benefits. Check gov.uk/statutory-sick-pay for the current eligibility rules.

Many employers provide occupational sick pay schemes that are more generous than SSP. The terms of these schemes are set by your contract, not by statute.

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Protection Against Unfair Dismissal

Unfair dismissal is the right not to be dismissed without a fair reason and a fair process. From April 2026, this right applies from day one of employment.

A dismissal is fair if the employer can show it was for one of the five potentially fair reasons in the ERA 1996:

1. Capability or qualifications (including ill health)
2. Conduct
3. Redundancy
4. Statutory illegality (e.g. an employee losing their right to work in the UK)
5. Some other substantial reason (SOSR)

Even where a fair reason exists, the employer must also follow a fair process. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets out best practice. Failure to follow the Code does not make a dismissal automatically unfair, but a tribunal may increase any compensation awarded by up to 25%.

Compensation for unfair dismissal consists of a basic award (calculated like redundancy pay) and a compensatory award. The compensatory award is capped at the lower of one year's salary or £115,115 (2025/26 limit, adjusted annually).

Certain dismissals are automatically unfair regardless of length of service. These include dismissal for whistleblowing, for asserting a statutory right, for trade union activities, or for a reason connected to pregnancy or maternity.

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Redundancy Rights

Redundancy is a potentially fair reason for dismissal under the ERA 1996. However, employers must follow a fair redundancy process, which includes:

• •Giving adequate warning and holding a genuine consultation
• •Applying fair selection criteria if choosing from a pool of employees
• •Considering suitable alternative employment within the organisation
• •Giving correct notice

Employees with at least two years of continuous service are entitled to statutory redundancy pay, calculated as follows:

• •Under 22: half a week's pay per year of service
• •22-40: one week's pay per year of service
• •41 and over: one and a half weeks' pay per year of service

Service is capped at 20 years, and weekly pay is capped at £643 per week (2025/26). The maximum statutory redundancy payment is therefore £19,290.

Employees can refuse an offer of suitable alternative employment, but doing so unreasonably means they lose their entitlement to statutory redundancy pay.

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Equality and Non-Discrimination at Work

The Equality Act 2010 applies from the very start of the recruitment process. Employers cannot lawfully discriminate in job advertisements, interviews, offers of employment, terms and conditions, promotion, training, or dismissal.

Direct discrimination means treating someone less favourably because of a protected characteristic. Indirect discrimination occurs when a provision, criterion, or practice that appears neutral in fact disadvantages people with a particular protected characteristic and cannot be justified as a proportionate means of achieving a legitimate aim.

Reasonable adjustments must be made for disabled employees. The duty arises where a provision, criterion, practice, or physical feature places a disabled person at a substantial disadvantage compared to non-disabled people.

Equal pay provisions within the Equality Act require men and women doing equal work to receive equal pay.

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Where to Get Help

ACAS (acas.org.uk) provides free impartial advice to employers and employees on employment rights, disciplinary and grievance procedures, and dispute resolution. Before making an employment tribunal claim, you must notify ACAS and go through early conciliation.

Employment Tribunals (gov.uk/employment-tribunals) hear claims for unfair dismissal, discrimination, redundancy pay, breach of contract, and other employment disputes. Most claims must be submitted within three months minus one day of the act complained of.

HMRC (hmrc.gov.uk) handles complaints about unpaid National Minimum Wage and matters relating to tax and National Insurance. For information on your payslip and tax, see our [UK income tax 2026 guide](/en/blog/uk-income-tax-2026-employee-guide).

If you are searching for a new role in the UK after a dispute or redundancy, [JobButler AI](/en/) covers live job postings across all major UK sectors and can match your skills and salary expectations against current vacancies.

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Your Employment Contract

Every employee is entitled to a written statement of particulars of employment (sometimes called a Section 1 statement) from the first day of work. This must include:

• •Names of employer and employee
• •Start date and job title
• •Pay and pay intervals
• •Hours of work
• •Holiday entitlement
• •Notice periods
• •Sick pay arrangements
• •Pension details
• •Any collective agreements

The official guidance from government is available at gov.uk/employment/your-employment-contract-how-it-can-be-changed.

Changes to contractual terms cannot be imposed unilaterally. An employer who seeks to vary terms significantly without agreement may be in breach of contract, and an employee who resigns as a result may be able to claim constructive unfair dismissal.

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Summary of Key Rights at a Glance

| Right | Current rule | Change from 2026 |

|---|---|---|

| Unfair dismissal protection | After 2 years | From day one |

| Annual leave (full-time) | 28 days including bank holidays | No change |

| SSP | £116.75/week from day 4 | Day 1 (proposed) |

| Redundancy pay qualifying period | 2 years | No change |

| Flexible working request | Day one (since 2023) | Strengthened |

UK employment law is detailed and case-specific. The above is a general guide. For your individual situation, ACAS (acas.org.uk) is the right starting point before consulting a solicitor or bringing a tribunal claim.