Legal reforms for 2026
Published on 16/01/26
As we head into 2026, Viktoria Kalemi from ARAG Law looks at several important legal reforms that will reshape the housing and labour regulations. Here is a quick overview of what we expect to see:
Employment Rights Bill
The Employment Rights Bill, first published in October 2024, aims to enhance worker’s protection, modernise regulations and promote fairer employment practices in the UK. Since then, Parliament has introduced several amendments and the changes arriving in 2026 and 2027 will be significant.
Key reforms to watch for:
Unfair dismissal
From January 2027, employees will be able to bring an unfair dismissal claim after six months of continuous employment – a major shift from the current two-year qualifying period.
From January 2027, employees will be able to bring an unfair dismissal claim after six months of continuous employment – a major shift from the current two-year qualifying period.
Zero hours contract
Workers will be able to request guaranteed hours of work based on the hours that they have worked over a period of 12 weeks. Moreover, employers will need to provide ‘reasonable’ notice if there are any changes to the employee’s shift pattern.
Workers will be able to request guaranteed hours of work based on the hours that they have worked over a period of 12 weeks. Moreover, employers will need to provide ‘reasonable’ notice if there are any changes to the employee’s shift pattern.
Paternity leave and unpaid parental leave
Both will become a day-1 right that employees get, instead of having to work for 1 year.
Both will become a day-1 right that employees get, instead of having to work for 1 year.
Fire and re-hire
If the employer decides to fire the employee and offer a new contract with more disadvantageous terms.
If the employer decides to fire the employee and offer a new contract with more disadvantageous terms.
Collective redundancy rights
Collective redundancy protections are expected to be broadened, improving consultation standards and worker presentation.
Collective redundancy protections are expected to be broadened, improving consultation standards and worker presentation.
Statutory sick pay
From April, the Lower Earnings Limits will be removed meaning more workers will qualify for statutory sick pay and it will be payable from day one of the sickness, removing the current three-day waiting period.
From April, the Lower Earnings Limits will be removed meaning more workers will qualify for statutory sick pay and it will be payable from day one of the sickness, removing the current three-day waiting period.
Landlord and Tenant
A significant change is also coming to the housing sector. The Renters’ Rights Act 2025, which received Royal Assent on 27th October, aims to improve the housing experience for both landlords and tenants. Whether it will achieve that delicate balance remains to be seen.
The key changes that we expect are
Removal of Section 21 ‘no fault’ eviction notices
From 1st May, landlords will no longer be able to issue Section 21 notices to evict tenants without giving a valid reason.
From 1st May, landlords will no longer be able to issue Section 21 notices to evict tenants without giving a valid reason.
Changes to Section 8 ‘fault’ eviction notices
These will remain, but there will be stricter requirements and higher-thresholds. Notably, in rent arrears cases, the tenant must owe three months’ rent before a landlord can rely on a mandatory ground, instead of the current two months.
These will remain, but there will be stricter requirements and higher-thresholds. Notably, in rent arrears cases, the tenant must owe three months’ rent before a landlord can rely on a mandatory ground, instead of the current two months.
These are just some of the many changes in these two landmark pieces of legislation. Landlords may need to review any planned possession action sooner rather than later.
The changes arriving in 2026 and 2027 will be significant.
Viktoria Kalemi - ARAG Law
Disclaimer - all this information was correct at the time of publishing