What employment law updates mean for charities

As we approach the end of 2025, it is important that charities review the current climate and how their staff are faring, while also taking steps to prepare for the coming year. This includes preparing for changes in employment practices and employment law.

 

Human resources software provider, Breathe HR, points to the UK government’s new Employment Rights Bill, which they describe as “the biggest set of changes to employment law in a generation”. In their guide, 2025/26 Employment Law Changes: The complete guide for the one-person HR team, Breathe HR acknowledges the pressures on organisations, particularly smaller ones, to keep pace with change and employee management. For charities, this challenge is compounded by rising service demand and a difficult fundraising landscape, which may see other areas prioritised above HR.

 

But looking after employees and ensuring the organisation is compliant with new laws is a vital part of the work that charities do. Breathe’s guide is aimed at helping HR professionals, especially those in smaller teams, handle the legal changes expected in 2026, from day-one maternity and paternity rights to statutory sick pay entitlements.

 

With the right information, clear processes, and simple HR tools, charities can stay compliant, protect their teams, and build stronger, fairer workplaces.

 

Below, we examine what policy shifts charities can expect to see in 2026 and how they can effectively prepare for it, ensuring their organisation and employees continue to be supported. 

 

Check out Breathe HR’s guide 

 

 

 

What’s changing in employment practices?

 

The Employment Rights Bill is expected to be implemented between April 2026 and early 2027. It will introduce measures such as day one rights to unfair dismissal claims, a more flexible approach to zero-hour contracts that empowers employees as well as employers, and eligibility of Statutory Sick Pay (SSP), making processes around it simpler for everyone involved.

 

Here we explore a few of the essential changes in more detail, with helpful insight from Breathe HR.

 

 

Statutory Sick Pay

 

From 6 April 2026, SSP will be payable from day one of an employee’s absence, instead of where it stands currently at day four. People on low incomes will also be able to qualify for SSP, receiving 80% of their weekly earnings or a flat rate of £118.75 per week (whichever is lowest).

 

Previously workers had to earn an average of £123 per week to qualify, leaving many workers choosing between looking after their health and financial security. The new rules aim to prevent presenteeism, which costs the economy billions of pounds every year, and give people the time off they need to recover while “retaining incentives for people to return to work”.

 

Breathe HR explains that short-term absences may increase as a result of the new rules and advises that managers hold open and supportive sickness conversations, including return-to-work meetings, and train leaders to handle calls fairly and confidently. HR software can help with this, by picking up on any potential absence patterns so leaders can escalate concerns if necessary.

 

 

Day-one right to unfair dismissal claims

 

Introducing day-one rights to unfair dismissal claims means that employees could have the right to claim unfair dismissal from the first day of their employment. Under the current rules, they must contribute two years of continuous service to be eligible.

 

The new rule, expected to be implemented in 2027, puts “far greater weight on probation reviews, onboarding, and dismissal processes”, according to Breathe HR. It advises that charities set clear expectations from new hires and hold regular check-ins throughout their probation period. It is also important that performance conversations are carefully documented to support fairness and transparency, while onboarding processes should be reviewed with the new law in mind.

 

 

Flexible and hybrid working rights

 

The new law around flexible working, expected to take effect in 2027, introduces a reasonableness test. When an employee requests flexible working arrangements, organisations must show that the process is fair and that the decision made is reasonable. Breathe HR expects that this will not only lead to more flexible working requests, but will also result in more scrutiny if refusals aren’t supported with evidence or appear arbitrary. 

 

As with the new onboarding processes, documenting decisions and discussions is important, while managers should be trained on what constitutes a reasonable refusal. Charities should revisit their existing policies and empower leaders to consider requests and explore options, balancing the needs of both the organisation and its employees.

 

You can find out more about upcoming regulatory changes, and how HR and managers can respond to them, in Breathe HR’s blog post here or watch the webinar below.

 

Watch the webinar

 

 

How can charities prepare for 2026?

 

These regulatory changes are part of a wider move towards fairer, more inclusive workplaces. This is particularly important to charities, who exist for the public good and are often under greater scrutiny as to their governance and compliance practices. 

 

But charities are also often home to smaller HR teams who may find these changes difficult to navigate. That’s why now is the time to get to grips with what’s coming up and understand what actions need to be taken to prepare for them.

 

Breathe HR’s guide provides a helpful checklist for the changes and their expected dates of implementation, along with what law they are part of and where leaders can read more. This will help charity leaders make a plan of action corresponding to each regulatory change and give them the confidence that they are keeping compliant as they are introduced.

 

Breathe HR sees the changes as an opportunity to strengthen internal policies, improve communication, and build trust with employees. Reviewing policies and communicating changes creates clarity, fairness, and confidence throughout the organisation, boosting productivity and morale, and ensuring compliance. 

 

To prepare with confidence, charities should review their policies and contracts, keep clear records of absence, leave, and flexible working requests, and rely on digital tools to help them, saving them the added time and extra admin the new rules are expected to introduce to HR workloads.

 

There are also lots of free resources available to help charities navigate changes to employment law and practices, including Breathe HR’s aforementioned guide, blog, and webinar. Taking advantage of these resources will make change management far easier and reduce the burden on charity HR teams at a challenging time. You can download Breathe HR’s full guide to regulatory changes below.

 

Download the guide