Caroline Seear* gives a practical guide for employers to the first wave of changes in the UK’s Employment Rights Act - landing in April and October.
On 18 December 2025, the UK Employment Rights Act 2025 received Royal Assent. It is now law, but most of the practical changes are being phased in through 2026 and 2027, with key commencement dates expected on 6 April and 1 October, 2026. For removals and storage businesses, this is not "just another HR update". The sector is labour-intensive, operates under tight margins, and often relies on seasonal peaks, variable hours, weekend work and customer-facing crews.
That combination means the 2026 changes are likely to show up quickly in:
- payroll cost;
- resourcing cover;
- customer-site behaviour risk;
- implementation of contractual change.
Below is a practical overview of what is due to change in 2026, why it matters specifically for removals and storage, and what companies should be doing now to stay ahead.
A high-impact sector for these reforms
Several parts of the Act interact directly with everyday realities on the road and on site, especially these five areas:
- High customer contact: crews work in people's homes and offices, meaning third-party behaviour (customers, neighbours, security staff, other trades) is a real factor.
- Variable hours and seasonal demand: peak season often brings longer days, overtime, and more short-notice labour.
- Multi-site and mobile work: managers are not always physically present, so you need clear systems for reporting, escalation and documentation.
- Use of agency labour, subcontractors or self-employed drivers/porters: compliance controls can be patchy unless they are designed in.
- Pay and deductions sensitivities: overtime, attendance bonuses, damage deductions and last-minute changes can quickly become employee-relations issues, especially with longer claim time limits.
The 2026 timetable
The Act is being implemented in phases. The Government and ACAS have indicated that the first wave is expected in April 2026, with a second wave in October 2026. Further reforms continue into 2027.
In practice, that gives removals and storage operators two planning windows: a payroll and policy window for April, and a higher-risk employee-relations window for October.
Wave 1: April 2026 – payroll and policy changes that bite quickly
From April 2026, the following measures are expected to take effect:
- Statutory Sick Pay (SSP): removal of the Lower Earnings Limit and removal of the waiting period, bringing more workers into scope and bringing payments forward.
- Day 1 paternity leave and Day 1 unpaid parental leave.
- Collective redundancy: doubling the maximum protective award for failures in collective consultation.
- Whistleblowing: stronger protections, including protection connected to reporting sexual harassment.
- Fair Work Agency: a new enforcement focus (establishment of the body).
- Trade union recognition: simplification of the recognition process and enabling electronic and workplace balloting.
1. Statutory Sick Pay: what it means
SSP changes are likely to be felt immediately in removals and storage because the workforce often includes a mix of full-time, part-time, casual and variable-hours staff. If lower-paid workers who previously fell outside SSP eligibility are brought into scope, and SSP starts sooner, absence cost and operational disruption can increase.
The practical risks are not only financial. In peak season, one or two absences can derail a whole day's work if a team is short a porter, driver or supervisor.
What to do now:
- Check your payroll system and HRIS configuration well before April 2026, including how the business records the first day of sickness and any evidence requirements.
- Review absence reporting processes for mobile teams (for example, a single route for reporting sickness, clear cut-off times, and a structured return-to-work process).
- Build a realistic peak-season cover plan (a small, pre-vetted pool of trained casuals can be cheaper than repeated customer failures).
2. Day 1 leave rights
Day 1 paternity leave and Day 1 unpaid parental leave change the early service assumptions many businesses still make.
What to do now:
- Update your employee handbook and manager guidance so eligibility and notice rules are applied consistently.
- Ensure supervisors understand how to plan cover without pressuring staff, especially where teams are small and customer deadlines are fixed.
Use onboarding to set expectations: explain how leave is requested, who approves it, and how the business supports short-notice operational cover.
3. Redundancy
The removals and storage sector sees periodic restructures driven by depot consolidation, contract wins and losses, or shifts between domestic, commercial and international volumes. Where collective consultation rules apply, failures to consult correctly carry higher financial exposure under the doubled protective award.
What to do now:
- Refresh your redundancy playbook and collective consultation checklist (including triggers, thresholds, and timelines).
- Make sure decision-makers understand that moving fast can cost more than doing it properly.
- Keep written records of consultation steps and communications, particularly where managers are spread across depots.
Enforcement and industrial relations: a more active landscape
Two background shifts matter for the industry. First, the Fair Work Agency points towards stronger enforcement and less tolerance for poor process. Second, changes to trade union recognition and balloting may increase union visibility, particularly within larger groups, depots and warehousing operations.
Even for businesses that do not recognise a union, the best protection is consistent, fair day-to-day management: clear pay and overtime rules, prompt handling of grievances, and respectful communication when change is needed.
Wave 2: October 2026 - higher-risk employee relations changes
From October 2026, the following measures are expected to take effect:
- Fire and rehire restrictions: tighter limits on dismissal and re-engagement for certain contractual changes.
- Harassment: employers must take all reasonable steps to prevent sexual harassment, and employers can become liable for third-party harassment (for example customers or clients) unless they have taken all reasonable steps to prevent it.
- Employment tribunal time limits: extension of the time limit for most claims to six months.
- Trade union measures: duty to inform workers of the right to join a trade union and strengthened right of access; new protections for trade union representatives.
- Other sector-specific items may apply depending on your business model (for example, tipping arrangements) ...
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