KLG Employment Law Update – July 2026: Case Law and Staying Ahead of Reforms

The Employment Rights Act 2025 (“ERA 2025”) is now reshaping UK workplaces in phases, with a new set of obligations already in force and more due this October. This quarter also brought heatwave guidance, a new trade union right of access, fit note reform, and several Employment Appeal Tribunal (EAT) rulings clarifying how discrimination and whistleblowing claims are tested. Below, we round up the key developments and what employers should be doing to prepare.  Employment Rights Act 2026: A Phased Reform  The Employment Rights Act 2025 received Royal Assent on 18 December 2025, delivering the Government’s “Plan to Make Work Pay” and marking one of the biggest overhauls of UK employment law in years. It’s being rolled out in phases through 2026 and 2027. Now in force (since 6 April 2026:  Statutory Sick Pay (SSP) now payable from day one of absence, including for lower paid workers  Introduction of day-one rights to paternity leave and unpaid parental leave  Increased protective award for collective redundancies  A new qualifying whistleblowing disclosure covering sexual harassment  A simplified trade union recognition process  Creation of the Fair Work Agency  Some of the Act’s most notable reforms are still to come later in October 2026:  Employers’ liability for third-party harassment unless “all reasonable steps” are taken to prevent it – more guidance as to what constitutes “all” will come soon  Employment Tribunal time limits will double, from 3 months to 6 months  A new duty to inform workers of their right to join a trade union, alongside an updated Code of Practice on trade union recognition  Increased protection against detriment for industrial action  Looking Ahead: A few notable reforms to take place in 2027:  Unfair dismissal protection from 6 months’ service (down from 2 years) Removal of the unfair dismissal compensatory award cap  “Fire-and-rehire” becoming automatically unfair in many cases  Strengthened protections for pregnant workers and those returning from maternity leave  Right to pay for cancelled, moved, or cut-short shifts  These reforms mark a clear shift toward stronger worker protections and greater regulatory oversight. Employers should start reassessing practices now to prepare for the increased obligations and scrutiny ahead. With ongoing changes to employment law, many organisations are taking the opportunity to review and update their documents, internal processes and management practises to ensure continued compliance. We are currently supporting a number of clients with: Reviewing and updating employment contracts, employee handbooks, policies and procedures  Ensuring payroll systems and processes comply with changes to Statutory Sick Pay (SSP) and other statutory entitlements  Providing management training on the evolving employment law landscape and its practical implications in the workplace Ensuring early preparation can help minimise risk, maintain compliance and guarantee your organisation is ready for future legislative developments.  Book a Compliance Review UK Quarterly Employment Update – June 2026  Turning to our Q2 2026 round-up, we cover a few key employment law developments from April to June, including heatwave guidance for employers, a new statutory right of trade union access and the government’s plans to reform fit notes.  Extreme Heat and the Workplace: What Employers Need to Know  With the Met Office issuing amber and red heat warnings for parts of England this summer 2026, employers should be reminded of the risks extreme heat can pose to their workers, and how to maintain a safe working environment this summer.  England has no statutory maximum workplace temperature; however, employers have a legal duty to protect workers from extreme heat. The Workplace (Health, Safety and Welfare) Regulations 1992 require indoor temperatures to be kept “reasonable” during working hours. In addition, the Management of Health and Safety at Work Regulations 1999 require employers to assess the risks from workplace hazards, including extreme heat. John Rowe, Deputy Director for HSE has warned that rising summer temperatures could “have a big impact on the workforce of this country, affecting everything from the health of workers to productivity on construction sites.”  Practical steps for employers:  Consider practical controls such as air conditioning or fans, shading windows, and a relaxed dress code to permit looser or cooler clothing.  Adjusting hours and duties, so physically demanding and strenuous work takes place during the cooler part of the day.  Providing chilled drinking water and encouraging regular hydration.  Pay close attention and take a proactive approach to employees who may be more vulnerable to heat, including pregnant workers, older employees, and those with certain medical conditions. Communicate early on travel and homeworking expectations Plan for heatwave-related disruption, such as transport delays or childcare issues.  Trade Union Right of Access: Government Response Published  In early June 2026, the Government published its responses to the consultation on the draft Code of Practice governing trade unions’ new statutory right of access to workplaces.  Under the new framework, unions will be able to request access to meet, recruit, and organise workers within workplaces, and to support collective bargaining. Requests and responses must be in writing (primarily by email), with terms ideally agreed directly between employer and union via a legally binding access agreement. Where no agreement is reached, the Central Arbitration Committee (CAC) will determine the terms. This statutory right is expected to come into force in October 2026 under the Employment Rights Act 2025, though this remains a target rather than confirmed date. Following the consultation, the Code has been refined to give clearer guidance for employers with multiple sites, and greater clarity on when an employer may refuse an access request.  Employers should start preparing now by: Review existing trade union arrangements to understand how they may interact with the new statutory right of access and identify any changes that may be required.  Developing an internal process for handling access requests, with a designated point of contact and all communications documented in writing Fit Note Reform: Government to Trial New Approach to Sickness Absence  The Government is moving forward with its plans to reform the fit note system, in response to concerns that it isn’t enabling productive conversations about work and health.  Newly published research shows around 6 in 10 employers see the current system as inadequate, with “may be fit for work” notes often lacking practical detail on adjustments, timeframes and next steps. There’s broader support for reform too, including widening certification powers to more healthcare professionals and better linking the system with occupational health. From July 2026, four regional pilots will launch across England for up to a year, covering around 100,000 appointments. Developed with input from patients, clinicians, and employers, the pilots will replace pure certification with personalised support plans focused on “staying in work” or “returning to work”. The model varies by region, some retain GPs as the first point of contact with referral to community support, while others shift responsibility to a mix of clinical and non-clinical practitioners. Employers should begin preparing now by considering the following:  Excepting a more proactive approach to sickness absence, with greater focus on keeping employees engaged during illness Revisiting return-to-work procedures, building management capability, and ensuring good-quality information is available when health issues arise As Q2 2026 draws to a close, employers should use this next quarter to review policies, prepare for the incoming right of access and data complaints duties, and keep an eye on further ERA 2025 developments due later this year. Speak with an Employment Law Solicitor Case Law Updates  This month’s cases see the Employment Appeal Tribunal (EAT) refining key discrimination and whistleblowing tests, alongside a sharp reminder that procedural missteps, whether in investigations or ET3 deadlines, can prove decisive regardless of merits.  Indirect Discrimination: Full Compensation Triggered Beyond Unfair Dismissal Cap  Griffiths v Essex County Council [2026]  Mrs. Griffiths, a social worker with a recognised mental health condition, was investigated over performance concerns but never told the allegations or given a chance to respond. The stress worsened her condition, and after a grievance only partly resolved things, she resigned.  The Tribunal found her exclusion from the investigation was unjustified indirect disability discrimination that breached trust and confidence, entitling her to claim constructive unfair dismissal. The EAT confirmed the discrimination caused her resignation. She was entitled to recover her full losses, uncapped.  Why it matters: A single discriminatory act can lead to uncapped compensation. Also, a useful reminder as reforms to remove the unfair dismissal cap are also on the horizon.  Whistleblowing: “Public Interest” Depends on Belief, not Motive  Bibescu v Clare Jenner t/a Jenners [2026]  An accountant flagged concerns that a subcontractor reviewing her work wasn’t properly qualified and was dismissed shortly after for performance reasons. The Tribunal rejected her whistleblowing claims, and the EAT agreed the dismissal was performance related.  However, the EAT overturned the ruling on whistleblowing detriment, finding the Tribunal wrongly focused on her motive rather than whether she genuinely and reasonably believed her disclosure exposed wrongdoing in the public interest. That issue goes back to a fresh Tribunal.  Why it matters: The decision confirms that the public interest test depends on the worker’s genuine and reasonable belief at the time of disclosure, not on their motive or whether the alleged wrongdoing is later proved.  EAT Confirms Strict Approach to Late ET3 Responses  Costco Wholesale UK Ltd v Nash [2026]  An employer filed its response to a race discrimination and harassment claim 10 months late, after ignoring tribunal correspondence and even deleting relevant emails. The Tribunal refused to extend time, and the EAT upheld that decision. The seriousness of the delay outweighed the merits of the employer’s defence.  Why it matters: The decision highlights the importance of complying with Employment Tribunal deadlines. Employers should have robust systems in place to monitor tribunal correspondence and respond promptly. Failure to do so may result in losing the opportunity to defend a claim, regardless of its merits. Royal Ascot 2026  On 19 June 2026, the Team swapped the office for a day at Royal Ascot for racing, sunshine, and (mostly) successful bets. As Anita Kalra put it, building a successful law firm isn’t just about delivering exceptional results for clients; it’s about creating an environment where people feel valued, connected and genuinely enjoy coming to work.  It was a wonderful chance to celebrate together outside the office, and a reminder that culture isn’t built through policies or perks alone. It’s built by listening to your team, celebrating successes together and investing in experiences that strengthen relationships beyond the office. Closing Remarks  The developments highlighted in this edition reflect the increasingly practical and enforcement-led direction of UK employment law. There is a clear expectation that employers must not only understand their legal obligations but ensure they are implemented effectively in practice.  Employers should take this opportunity to:  Review policies and procedures against upcoming ERA 2025 obligations, including the October 2026 changes   prepare internal processes for the new statutory right of trade union access  ensure investigation and disciplinary procedures are fair, well-documented and free from discriminatory outcomes  train managers on evolving legal risks, including heatwave safety duties and fit note reform  As employment law continues to evolve, taking proactive steps and seeking timely advice will remain key to managing risk and ensuring compliance.  For further guidance, or to discuss how these developments may affect your organisation, please contact: Kalra Legal Group