The UK’s employment law framework is entering a period of significant change. Over the next two years, a series of reforms will reshape workplace rights, protections and employer responsibilities. This represents the most substantial overhaul since the 1970s.
For those working across the finance sector, these changes matter. From day-one employment rights and stronger dismissal protections to enhanced trade union recognition, the new legislation will affect how people are hired, supported, treated and represented at work.
At Aegis the Union we are monitoring these developments closely. Our role is not only to keep members informed, but to ensure these new rights are properly understood, fairly implemented, and actively enforced.
A brief overview: What’s changing?
The Employment Rights Act (passed in late 2025) sets out a phased programme of reforms, with most changes coming into force between 2026 and 2027. Rather than one single “switch-on” date, new rights and duties will arrive gradually. This makes clarity, guidance and representation more important than ever.
Below is a practical timeline of what members should expect.
April 2026: Stronger rights from day one
From April 2026, a number of important changes will begin to take effect particularly around early employment protections.
Key changes include:
- Statutory Sick Pay from day one
Sick pay will be available from the first day of absence, with the removal of the lower earnings limit meaning more workers qualify. - Family-related leave available immediately
Paternity leave and unpaid parental leave will become day-one rights, removing the need for lengthy qualifying periods. - Stronger whistleblowing protections
Disclosures relating to issues such as sexual harassment will be more clearly protected under whistleblowing law. - Easier trade union recognition
The process for securing union recognition will be simplified strengthening collective representation in the workplace. - Greater enforcement of employment rights
A new Fair Work Agency will be established to oversee compliance with key rights such as sick pay, holiday pay and minimum wage.
What this means for members:
These reforms provide earlier security and broader access to core protections, particularly important in fast-moving or high-pressure finance roles. Aegis will be on hand to help members understand how these rights apply in practice and what to do if they are not honoured.
October 2026: Stronger protections at work
A second wave of reforms is expected from October 2026, focusing on workplace conduct, dismissal practices and access to justice.
Key changes include:
- Tighter restrictions on ‘fire and rehire’
Dismissing staff for refusing contractual changes will be automatically unfair in most circumstances, unless employers can demonstrate genuine financial necessity. - A stronger duty to prevent harassment
Employers will be required to take all reasonable steps to prevent sexual harassment, including harassment by third parties. - Extended time limits for employment tribunal claims
Many claims will move from a three-month to a six-month deadline, giving workers more time to seek advice and take action. - Enhanced rights for union representatives
Including improved access, facilities and time off for equality and union duties.
What this means for members:
These changes strengthen accountability and give workers more time and support to challenge unfair treatment. Aegis will support members through disputes, consultations and claims where needed.
Looking ahead to 2027 and beyond
Some of the most significant reforms are scheduled for 2027:
- Unfair dismissal protection after six months
The qualifying period will reduce from two years to six months, extending protection to many more workers. - Removal of the compensation cap
The current cap on unfair dismissal awards will be removed, increasing the consequences for unlawful dismissal. - Further protections for insecure work
Including rights around predictable hours and reasonable notice of shifts, with further detail expected through secondary legislation.
How Aegis will support members through these changes
Change on this scale can feel uncertain, particularly when new rights are introduced gradually and guidance evolves over time. That is why Aegis is committed to:
- Keeping members informed with clear, practical updates
- Providing advice and representation as new rights take effect
- Engaging with employers to ensure lawful and fair implementation
- Challenging non-compliance where employers fall short
- Amplifying members’ voices as workplace practices evolve
Our focus is on ensuring that improvements on paper translate into real, lived protections for finance sector workers.
Final Thoughts
The coming years represent a major step forward for employment rights in the UK. While legislation sets the framework, strong representation is what ensures those rights are respected in practice.
Aegis will continue to keep a close eye on developments, share timely guidance, and stand alongside our members as these changes arrive.
If you have questions about how the reforms may affect you, or if you need advice or representation, please contact one of your local reps. If you’re not sure who that is you can find them in the member area of our website or alternatively you can contact us at members@aegistheunion.co.uk
