Employment Rights Act 2025 is coming into affect - are you prepared?
The Employment Rights Act 2025 is now law in the UK, receiving Royal Assent on 18 December 2025. It represents the most significant overhaul of employment rights in a generation, with reforms rolling out in stages through 2026 and 2027. Employers, business leaders, HR teams and workers all need to understand what’s changing and why it matters.
Changes to reflect new work patterns
The Act modernises and updates long-standing employment rules to reflect changing work patterns, strengthen protections for workers, and encourage fair and productive workplaces. Rather than a single change, it delivers a wide range of reforms designed to improve working conditions, raise job security, and give employees a stronger voice in the workplace - read more here.
Key changes employers need to know
Below are some of the most important reforms introduced by the Act, many of which will change how employers recruit, manage and support their workforce.
1. Protection against unfair dismissal
One of the headline changes is the reduction in the qualifying period for ordinary unfair dismissal claims.
• Previously, a worker had to be employed for two years before bringing a claim — under the new Act, this will be reduced to six months.
This means employers must have much clearer processes in place during the first six months of employment. This includes probation reviews, structured feedback, and documentation; all of this is important to implement in your business to minimise legal risk when letting someone go.
2. Family-Friendly leave rights
The Act broadens key family and leave entitlements:
• Day-one rights for paternity leave and certain parental leave provisions.
These changes give employees greater flexibility and support at important life stages, but they also mean employers need to revise policies, payroll systems and HR communications.
3. Addressing Insecure and Zero-Hours Work
A major focus of the Act is tackling insecure working patterns, including reforms affecting zero-hours and variable-hours contracts:
• Workers with a regular pattern of hours may have the right to a guaranteed-hours contract that reflects the hours they actually work.
• Employers may also have to provide reasonable advance notice of shifts and face potential remedies for last-minute cancellations.
These changes intend to reduce the unpredictability of working hours and improve workers' financial stability.
4. Broader employer duties and union rights
Other notable reforms include:
• A proactive duty that employers must take reasonable steps to prevent sexual harassment and protect staff from third-party harassment
• New statutory rights to time off for union equality representatives, reflecting a shift towards supporting collective workplace representation.
Employers should review their HR practices to make sure they’re ready not just for legal compliance as well as for strong employee relations.
Not all changes take effect immediately. The Act’s provisions are being implemented in phases over 2026 and 2027, with many requiring secondary regulations and consultations before they come into force.
For example:
• Changes to unfair dismissal rules are expected in January 2027.
• Reforms affecting zero-hours contracts and other rights may follow later in the rollout.
This staggered implementation gives organisations time to prepare, but it also means keeping informed and acting early.
Key Changes Coming on 6 April 2026
Statutory Sick Pay (SSP) reforms mean SSP will be payable from day one of illness, rather than after the current three-day waiting period. The lower earnings limit will be removed, meaning more workers, including many low-paid and part-time workers, will qualify for SSP.
Expanded Family leave rights mean that employees will gain day-one rights to paternity leave and unpaid parental leave, so there’s no qualifying service requirement anymore. Bereaved partners will also have a new right to paternity leave (up to 52 weeks) where the child’s mother or adopter dies within the first year.
Whistleblowing protections strengthened - A disclosure of sexual harassment at work will be explicitly protected, giving stronger legal protection to those who speak up.
Collective redundancy penalties increased. The maximum ‘protective award’ for failing to consult on collective redundancies properly will double (from 90 to 180 days’ pay).
National Minimum Wage and statutory payment rate increases also take effect from 1 April 2026, though these are separate from the ERA itself.
From April 2026, employers will need to:
• Update SSP processes and payroll systems to pay from day one and cover more workers.
• Revise parental and paternity leave policies and communications to reflect new day-one eligibility.
• Review whistleblowing policies to ensure sexual harassment disclosures are treated as protected disclosures.
• Adjust collective redundancy procedures and prepare for potentially higher penalties due to non-compliance.
• Engage with the Fair Work Agency as a future enforcement body anytime employment rights are enforced.
We know these changes are going to impact every employer so please take time to review your handbooks, processes and contact us for advice and support.
Many businesses don’t realise what needs updating until it’s too late.
That’s why we’re offering a FREE HR Review - giving you peace of mind that everything is in order.
During your review, we’ll:
✔ Highlight how the latest Employment Act changes affect your business
✔ Identify any gaps or risks in your current HR processes
✔ Provide practical, straightforward advice you can act on immediately
At Plain Talking HR, we believe HR shouldn’t be complicated or confusing – just clear, compliant, and working for you.
If you’d like to stay ahead of the changes and avoid any costly surprises, book your free review today. Simply email [email protected] to arrange.
This content will only be shown when viewing the full post. Click on this text to edit it.
Share this post: