The biggest shake-up in UK employment law in a generation is already live.
Day-one rights arrived in April 2026. On 1 January 2027 the cap on unfair dismissal awards is removed entirely. Most handbooks written before 2025 reflect none of it. Check yours against current UK law in minutes.
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- 1 Jan 2027
- Unfair dismissal compensation cap removed
- 6 months
- New qualifying period, down from 2 years
- £123,543
- Today's cap, gone from 2027
- 15+
- UK legislation sources Bounda checks against
Sources: Employment Rights Act 2025; gov.uk; legislation.gov.uk. Figures current to June 2026, verify before relying on them.
Your handbook was written for rules that no longer apply.
If your staff handbook predates 2025, it does not reflect the Employment Rights Act. Statutory sick pay is now payable from day one. Paternity and unpaid parental leave are day-one rights. The duty to prevent sexual harassment has been strengthened. And from January 2027 the unfair dismissal qualifying period falls to six months with no cap on what a tribunal can award. The gap between what your handbook says and what the law now requires is exactly where the risk sits.
What the Employment Rights Act changes, and when
Measure by measure: what is already law, what is coming, which policies are affected and what to do about each one.
Already in force: has your handbook caught up?
In forceThese measures took effect on 6 April 2026. They are not upcoming changes to prepare for; they are current law your policies should already reflect.
Statutory sick pay from day one
6 April 2026Policies affected: Sickness absence policy, payroll procedures
Remove any reference to three waiting days or the lower earnings limit. SSP is payable from the first day of sickness, to all employees regardless of earnings, at £123.25 a week or 80% of normal weekly earnings if lower.
Day-one paternity and unpaid parental leave
6 April 2026Policies affected: Paternity leave, parental leave and onboarding documents
Remove the old 26-week and one-year qualifying service requirements. New starters can give notice of leave from their first day, and paternity leave can now be taken after shared parental leave.
Bereaved partner’s paternity leave
6 April 2026Policies affected: Family leave and compassionate leave policies
Add provision for bereaved fathers and partners to take up to 52 weeks of leave if the mother or primary adopter dies within the first year of the child’s life.
Whistleblowing protection for sexual harassment disclosures
6 April 2026Policies affected: Whistleblowing policy, anti-harassment policy
Make sure your whistleblowing policy treats disclosures about sexual harassment as protected disclosures, with the reporting route to match.
Collective redundancy protective award doubled
6 April 2026Policies affected: Redundancy policy and consultation procedures
The maximum protective award for consultation failures doubled from 90 to 180 days’ pay per employee. The policy wording may not change, but the cost of skipping proper consultation has.
October 2026: the harassment bar rises
UpcomingThe next wave lands in October 2026 and is centred on harassment and tribunal access.
“All reasonable steps” to prevent sexual harassment
October 2026Policies affected: Anti-harassment policy, risk assessments, training records
The duty rises from “reasonable steps” to “all reasonable steps”. You will need a documented harassment risk assessment, current training and evidence of both, not just a policy on file.
Liability for third-party harassment
October 2026Policies affected: Anti-harassment policy, front-of-house procedures
Employers become liable for harassment of staff by customers, clients and other third parties unless all reasonable steps were taken to prevent it. Public-facing businesses are most exposed.
Tribunal time limits extended to six months
October 2026Policies affected: Record keeping, grievance and dismissal documentation
Claimants get six months rather than three to bring most claims. Contemporaneous notes and retained records matter for twice as long.
New trade union rights
October 2026Policies affected: Written statement of particulars, employee relations policies
Employers must inform workers of their right to join a trade union, and union access and representative protections are strengthened.
1 January 2027: unfair dismissal changes everything
UpcomingThe most consequential changes for day-to-day management land together on New Year’s Day 2027.
Unfair dismissal qualifying period cut to six months
1 January 2027Policies affected: Probation, disciplinary, capability and dismissal procedures
Anyone with six months’ service on 1 January 2027 is protected immediately, including existing staff. Probation reviews and documentation need to conclude well inside six months.
Unfair dismissal compensation cap removed
1 January 2027Policies affected: Dismissal procedures, settlement practice
The compensatory award cap (£123,543 after the final April 2026 uprating) is abolished. Awards reflect actual loss with no ceiling, so process failures on higher earners become far more expensive.
Fire-and-rehire restrictions
1 January 2027Policies affected: Contract variation and restructuring procedures
Dismissing and re-engaging staff to force through changes to key contract terms becomes automatically unfair except in narrow financial-distress circumstances. Consultation becomes the only safe route.
Later in 2027 and beyond
UpcomingFurther measures are due through 2027, with details still to be set in regulations.
Guaranteed hours for zero-hours workers
Expected 2027Policies affected: Zero-hours and casual worker arrangements, scheduling
Qualifying workers will gain rights to guaranteed hours reflecting actual hours worked, plus notice of shifts. If you rely on zero-hours contracts, start reviewing rotas and contract terms now.
Regulations defining “reasonable steps” on harassment
Expected 2027Policies affected: Anti-harassment policy and risk assessment
The government will specify what counts as reasonable steps to prevent sexual harassment, turning today’s judgement call into a checklist you can be measured against.
Bereavement leave as a general right
Date to be confirmedPolicies affected: Compassionate and bereavement leave policies
A general right to bereavement leave, including for pregnancy loss, is enacted with details to follow in regulations. Build the policy heading now and fill in the entitlement when the rules land.
The handbook is no longer a one-off job. It changes as the law does.
Last verified 15 July 2026 against the government implementation timetable and ACAS guidance. Upcoming measures may change as commencement regulations are made.
Paste, check, fix. In minutes, not legal hours.
Three steps from a handbook you are not sure about to one you can defend, without a legal retainer or a rewrite from scratch.
Paste your policies.
Drop in your existing handbook or start from a template. Bounda structures it into the policy types a UK employer needs, so there is nothing to format or organise first.
- Paste a whole handbook, a single policy, or start from a Bounda template.
- Sorted automatically into the 50+ UK policy types across the employment lifecycle.
- No tidying up beforehand. Bounda reads whatever you have and structures it.

See every gap, ranked by risk.
Bounda checks each section against current UK employment law and returns a ranked list of issues, so you fix what actually exposes you first rather than guessing.
- Checked against 15+ legislation sources, including the Employment Rights Act 2025.
- Issues ranked Critical, High, Medium and Low by severity.
- Every gap cites the specific law behind it, linked to legislation.gov.uk.

Accept the fix.
Take an AI-drafted compliant replacement, edit it yourself, or draft a missing policy from scratch. Built for UK employment law, not adapted from a US template.
- Accept a compliant redraft in one click, or refine it before you save.
- Draft missing policies from scratch in your own tone of voice.
- Export the finished handbook to Word or PDF when you are done.

- Built for UK law
- Legal citations on every gap
- ICO registered
- Encrypted in transit and at rest
- Word and PDF export
- Cancel anytime
Questions UK employers are asking
Is my employee handbook out of date after the Employment Rights Act 2025?
Probably. The Act received Royal Assent in December 2025 and is the biggest change to UK employment law in decades. Day-one rights to statutory sick pay, paternity and unpaid parental leave took effect in April 2026, and from January 2027 the unfair dismissal qualifying period drops to six months with the compensation cap removed. Handbooks written before 2025 will not reflect these changes. Bounda checks yours against current legislation and flags every gap.
What changes on 1 January 2027?
The qualifying period for ordinary unfair dismissal falls from two years to six months, and the statutory cap on compensatory awards is removed entirely. Employees with six months service on that date gain protection immediately, so anyone hired from around July 2026 is in scope. For employers this raises the stakes on how dismissals, probation and documentation are handled.
Do I need an employment lawyer to update my handbook?
Not to find the gaps. Bounda checks your existing policies against 15+ UK legislation sources, ranks the issues by severity, cites the specific law and drafts compliant replacements you can export to Word. It is built for UK employment law rather than adapted from a US template. For contentious individual cases you should still take legal advice, but the routine handbook work no longer needs a lawyer hourly rate.
How long does a handbook check take?
Minutes. Paste your existing policies or start from a template, and Bounda structures them, runs the gap analysis and returns a ranked list of issues with citations. You can accept AI-drafted fixes or draft missing policies from scratch.
Is the trial really free?
Yes. Seven days, no credit card. You can run a full gap analysis and see your handbook compliance position before deciding whether to pay.
What does Bounda cover beyond the handbook?
40+ HR document types including disciplinary and grievance letters, settlement agreements and return-to-work forms, a Handbook Chatbot that answers policy questions from your own handbook with citations, dated version history as evidence of your compliance efforts, and alerts when the law changes.
Go deeper on the changes
What changed in April 2026
The day-one rights are live. The checklist for making sure your handbook has caught up.
The six-month rule from January 2027
Why anyone you hire this month gets unfair dismissal rights in January, and what to do now.
The October 2026 harassment duty
From reasonable steps to all reasonable steps, and liability for customers and clients.
ERA 2025 in plain English
The full guide to what changed, when each provision takes effect and how Bounda helps.
Find out where your handbook stands.
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