Estate agents across the UK will need to adapt to significant employment law changes beginning in April 2026, according to industry body Propertymark.
The reforms, primarily stemming from the Employment Rights Act 2025, will affect recruitment practices, workplace policies and staff management across agencies employing negotiators, property managers, administrative staff and apprentices.
April 2026 changes
From 6 April 2026, paternity leave and ordinary unpaid parental leave will become ‘day one rights’, allowing employees to give notice from their first day of employment. The restriction preventing paternity leave following shared parental leave will be removed.
In cases where the mother or primary adopter dies within the child’s first year, eligible partners will be entitled to up to 52 weeks of unpaid bereaved partner’s paternity leave.
Statutory sick pay reforms
Statutory sick pay will be payable from the first day of illness, with the lower earnings limit removed. The maximum collective redundancy ‘protective award’ for employers failing to consult staff will double from 90 days’ pay to 180 days’ pay.
Sexual harassment disclosures will be covered under whistleblowing legislation, providing workers with protection from detriment or unfair dismissal.
Gender pay gap reporting
Employers will be encouraged to introduce gender pay gap and menopause action plans on a voluntary basis before these become mandatory in 2027.
A Fair Work Agency, launching on 7 April 2026, will serve as a central enforcement body for employment rights with powers to inspect business premises.
Later 2026 changes
Additional changes expected later in 2026 include strengthened employer duties to prevent sexual harassment, liability for harassment by third parties including customers, and employment tribunal time limits extending from three to six months.
Changes to non-disclosure agreements will prevent employers from using NDAs to stop workers reporting harassment or discrimination.
In 2027, the government plans to introduce day-one protection from unfair dismissal and restrictions on ‘fire and rehire’ practices.
Propertymark has advised agents to familiarise themselves with the reforms and seek specialist HR or legal advice where necessary. Further details are available through government guidance and Propertymark’s website.
