April 2026 marks a turning point for UK employment law. The Employment Rights Act 2026 — one of the most sweeping reforms to workplace legislation in a generation — has now come into force, and its implications reach every sector, every business size, and every type of employment arrangement in the UK.
Whether you run a logistics firm, a warehouse operation, a hospitality business, or an office-based team, the changes introduced by this Act will affect how you hire, manage, and retain staff. The good news is that with the right preparation, you can stay compliant and continue to build the flexible, reliable workforce your business needs.
Here's a clear, practical breakdown of what's changed and what you should be doing right now.
The Employment Rights Act 2026 brings in several significant reforms that employers need to understand immediately. These aren't future-dated proposals — they apply now.
Previously, employees needed two years of continuous service before qualifying for unfair dismissal protection. That threshold has been removed. Under the new Act, employees have the right to bring an unfair dismissal claim from their very first day of employment — subject to a statutory probationary period framework.
This doesn't mean probationary periods are abolished — it means employers must now manage them properly. A clearly documented probation process, with regular check-ins, written feedback, and a fair assessment procedure, is no longer best practice; it's essential protection.
Workers on zero-hours contracts now have the right to request a guaranteed hours contract after completing 12 weeks of regular work. Employers cannot routinely use zero-hours arrangements to avoid obligations — if a worker has been working consistent hours over that period, they have grounds to request security of hours.
This doesn't ban zero-hours contracts outright, but it does change the dynamic. Employers need to actively review how they're using these arrangements and ensure any refusal of a guaranteed hours request is genuinely justifiable.
The lower earnings threshold for SSP eligibility has been removed. This means that lower-paid and part-time workers who previously didn't qualify for SSP are now entitled to it from day one of sickness absence. For employers with a large part-time or hourly-paid workforce, this is a direct cost consideration that needs to be factored into absence management planning.
Paternity leave is now a day-one right — no qualifying period required. Enhanced provisions for parental leave have also been introduced, giving employees greater certainty and flexibility around family-related absence. Contracts and HR policies that still reference old qualifying periods will need updating immediately.
The practice of dismissing employees and re-engaging them on less favourable terms — colloquially known as "fire and rehire" — has been significantly restricted. Employers can no longer use this as a routine mechanism to change contractual terms, and doing so without meeting strict procedural requirements will now carry considerably greater legal risk.
The transport, logistics, and warehousing sectors rely heavily on flexible staffing — zero-hours workers, part-time operatives, seasonal hires, and agency staff. It's an industry built around variable demand, and that isn't going to change. But how that flexibility is structured needs to evolve.
The reforms don't prevent flexible staffing. They change the obligations that come with it. Zero-hours arrangements are still permissible — but only if they're genuinely reflective of variable, unpredictable work patterns. Using them as a default to avoid providing consistent hours to workers who regularly show up on the same shifts, week in, week out, is no longer legally straightforward.
Similarly, with day-one unfair dismissal rights now in place, the days of relying on a two-year qualifying period as an informal buffer are over. That doesn't make hiring riskier — it makes good hiring practice more important. Proper onboarding, clear job descriptions, structured probation reviews, and transparent performance conversations protect both parties.
For businesses managing peaks and troughs in demand — packing seasons, contract surges, driver shortages — temporary and agency staffing provides a practical, compliant path to flexibility. Working with a specialist recruiter means the legal framework is managed at the agency level, reducing your direct exposure.
There are practical steps every UK employer should be taking in the wake of the Employment Rights Act 2026 coming into force:
One of the most effective ways to maintain workforce flexibility under the new rules is through properly structured temporary staffing via a recruitment agency.
When you engage temporary workers through an agency like Prism 7 Resourcing, the employment relationship — including all the obligations that come with it — is managed by the agency. That means the agency handles contracts, SSP eligibility, statutory rights, and compliance with the new legislation. You get the workers you need, when you need them, without taking on the full legal weight of direct employment for every variable role in your business.
Temp-to-perm arrangements also remain a strong option: you trial a candidate on a temporary basis, assess fit over a defined period, and convert to permanent employment when you're confident. Under the new Act, that trial period needs to be managed carefully — but with clear documentation and a structured process, it remains a practical and legally sound approach.
For a deeper look at how temporary employment works in the transport and logistics sector specifically — and the benefits it brings for both employers and workers — read our guide: The World of Temporary Employment in Transport & Logistics.
The Employment Rights Act 2026 has changed the landscape, but it hasn't made flexible staffing impossible. It's made the case for working with a knowledgeable recruitment partner even stronger.
Navigate the New Rules with Confidence
Prism 7 Resourcing helps UK employers build compliant, flexible workforces across logistics, warehousing, construction, and more. Whether you need temporary cover, permanent hires, or advice on how the new legislation affects your staffing model — we're here to help.
Get in touch with the Prism 7 Resourcing UK team today:
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