As schools begin their preparations for the 2026/2027 academic year, attention will naturally turn to September recruitment, onboarding and finalising staffing arrangements for the year ahead. However, this year’s preparations come against the backdrop of the continuing roll-out of the Employment Rights Act 2025 (“the Act”).
We have now reached a point in this series on the Act where a number of significant measures have already taken effect, with some of the most widely-discussed changes still to come.
Below we outline which provisions are already in force and the timeline for those remaining. Most importantly, we highlight what schools should be doing to ensure they are compliant with their current obligations and how to use this valuable window of opportunity over the summer break to prepare for the Act’s next phase of reform.
Changes already in force
Day-one family-friendly rights and Statutory Sick Pay (“SSP”)
One of the first major changes introduced under the Act was the extension of paternity leave and unpaid parental leave to day-one rights from 6 April 2026. This means that employees no longer become eligible through a qualifying period of service.
SSP has also become payable from the first day of absence, rather than the fourth day, and the Lower Earnings Limit was removed. Again, these changes took effect from 6 April 2026.
Although the amendments to family-friendly rights may not require existing policies to be overhauled, schools should ensure that staff handbooks, the relevant policies and manager guidance accurately reflect the current position. Recruitment and onboarding documentation should also be reviewed to ensure that new starters receive up-to-date information about their rights.
Holiday records
Perhaps the most immediate compliance issue for schools is that, as of 6 April 2026, failing to keep adequate records demonstrating compliance with the Working Time Regulations is a criminal offence.
Employers must keep sufficient records of holiday entitlement and holiday pay obligations and retain these for a minimum of six years. The Fair Work Agency will also have enforcement powers in this area once fully operational.
The requirement was introduced with very little notice, during the Easter break for many schools, meaning some employers may not yet have reviewed whether their existing systems meet the new requirements.
While most schools keep detailed holiday records for year-round support staff, term-time only staff and teaching staff are traditionally deemed to have taken their leave during school closure periods, so records may not have been kept for these members of staff. Going forward, schools must ensure they maintain records of:
- annual leave entitlement (statutory and contractual);
- dates on which leave is taken or deemed to be taken;
- any carried-over leave and the reasons for carry-over;
- pro-rata holiday calculations for term-time staff; and
- holiday accrual and payment arrangements for zero-hours or irregular workers.
The legislation is not prescriptive on formatting, so a spreadsheet or existing HR system will likely be sufficient, provided that records are capable of demonstrating compliance if challenged and are maintained for the required 6-year minimum period.
Industrial action
Since February 2026, dismissal for participation in lawful industrial action has been automatically unfair, removing the previous 12-week limitation period.
This represents another example of the broader strengthening of employee protections under the Act that employers should be aware of, when considering disciplinary or dismissal action in trade union contexts.
What lies ahead: October 2026
Harassment
From October, employers will become liable for harassment committed by third parties, such as parents, visitors, contractors or suppliers, unless they can demonstrate that they have taken all reasonable steps to prevent it.
At the same time, the duty on employers to prevent sexual harassment will be strengthened. Rather than taking “reasonable steps”, employers will be required to take “all reasonable steps” to prevent sexual harassment from occurring.
For schools, where staff regularly interact with parents, governors, visitors and members of the wider community, this is likely to require careful consideration of policies, reporting procedures and training.
Tribunal time limits
The limitation period for most Employment Tribunal claims will increase from three months to six months. This change is expected to take effect no earlier than October 2026.
Although this is a seemingly procedural change, the practical effect for schools is that we may see an upswing in claim numbers as employees have more time to consider bringing a claim. Employers will also face a longer period of uncertainty following an employment dispute.
The priority for HR is clear – deal with issues early, keep robust records and plan for a longer limbo period following any conflict.
What lies ahead: January 2027
Unfair dismissal
Following extensive debate during the legislation’s passage through parliament, employees will now acquire protection from unfair dismissal after six months’ service, replacing the two-year qualifying period. At the same time, the cap on the compensatory award for unfair dismissal claims will be removed.
These measures will apply for dismissals with an effective date of termination falling on or after 1 January 2027.
While less drastic than the Government’s original proposal, the change will still materially increase the legal risk associated with a school’s recruitment decisions, probation management and performance review practices.
Fire and rehire
Also coming into force in January 2027 are the Act’s new restrictions on dismissal and re-engagement activities, commonly referred to as “fire and rehire”. Fire and rehire will become automatically unfair in most cases, subject to an updated statutory Code of Practice that we expect to see in 2027, though we do not yet have an implementation date.
The new rules mean that it will be much more difficult for employers to make contractual changes, because their ability to fairly dismiss employees who do not agree to contractual changes is being restricted. School should therefore take stock of what their employment contracts say and what greater flexibility they may require to be drafted into contracts in advance of the provisions taking effect.
What should schools be doing now?
Though some of the headline reforms remain several months away, schools should not wait until the expected implementation dates arrive before taking protective action.
Rethinking probationary periods
One of the most immediate areas for review is probation.
The reduction in the unfair dismissal qualifying period means that schools may wish to reconsider their traditional term-long probation periods.
Schools may wish to consider whether shortening probation periods, potentially to half a term, would provide greater flexibility. Equally important is ensuring that managers actively manage employees during probation, by documenting concerns and addressing performance issued promptly.
Remember – staff hired on or before 1 July 2026 will attain six months’ service by 1 January 2027 and benefit from statutory protection from dismissal. In addition, with the long notice periods that are customary in schools, many staff hired after this date would need to be paid payments in lieu of notice, if schools are not happy with their performance and want to terminate their employment without them acquiring six months’ service.
Revisiting fixed-term contracts
Fixed-term contracts are frequently relied on for maternity cover, temporary staffing and project-based roles. However, schools should be cautious about assuming that expiry of a fixed-term contract will provide a straightforward employee exit.
Non-renewal of a fixed-term contract is a dismissal under employment law and requires a fair process. Schools may therefore find that one-year fixed term contracts no longer provide the flexibility they once appeared to offer, with employees acquiring statutory protection after six months.
This does not mean that fixed-term contracts should be avoided altogether, but schools should ensure they are justified, drafted with appropriate termination provisions and concluded with a proper process.
Auditing policies and contracts
Schools should use the current window to review key documentation, including:
- employment contracts;
- staff handbooks;
- disciplinary and capability procedures;
- grievance procedures;
- family-friendly policies; and
- anti-harassment policies.
It is particularly important that documentation issued to September 2026 starters accurately reflects the current legal position.
Training and implementation
Many employment claims arise not because policies are absent, but because they are poorly followed.
As employee protections expand, schools should ensure that senior leaders, HR teams and line managers understand the practical implications of the new legislation. Particular focus should be given to effective probation management, conducting fair and timely performance processes, maintaining accurate records and identifying and responding to harassment risks.
Looking forward
Although further consultation and guidance is expected as part of the Act’s phased implementation, the overall message is clear – strengthened employee rights at an earlier stage of employment.
The coming academic year provides a valuable opportunity for schools to review their employment practices and schools that take action now will find it far easier to adapt when the most significant reforms arrive. The Independent Schools team would be happy to support you through any preparatory steps you may wish to take. Please get in touch with your usual contact if you require assistance.
