Employment Rights Act 2025: What Employers Need to Know 

The Employment Rights Act 2025 represents the most significant overhaul of UK employment law in a generation. With changes rolling out across 2026 and 2027, employers will need to understand the new requirements, update internal processes and prepare for new risks relating to dismissal, industrial relations, flexible staffing and workplace protections.

This page brings together all our guidance in one place – starting with a simple overview of what’s changing, when, and what HR and leadership teams should begin planning for now.

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is a wide‑ranging reform package designed to strengthen worker protections, modernise industrial relations rules, and enhance workplace fairness.

It introduces new rights across sick pay, parental leave, harassment prevention, dismissal rules, zero‑hours and low‑hours arrangements, trade union access, and more.

The act received royal assent on 18 December 2025 and will take effect in stages from February 2026 through to 2027.

The key changes at a glance

Some of the headline reforms include:

• Statutory sick pay (SSP) from day one, with removal of the lower earnings limit.
• Day‑one paternity and unpaid parental leave.
• Strengthened trade union rights and simplified recognition rules.
• New Fair Work Agency with enforcement powers.
• Higher harassment prevention duties, including third‑party harassment protection.
• Extended tribunal time limits (from three to six months).
• Unfair dismissal reforms from 2027:
• Six‑month qualifying period
• Removal of compensatory award cap
• Fire and rehire restrictions.
• Employer duty to offer guaranteed‑hours and shift‑notice rules for zero‑hours and low‑hours workers.
• Mandatory equality action plans.
• Expanded bereavement leave rights.

When the changes will take effect

• February 2026: Industrial action and ballot changes.
• April 2026: SSP reform, parental leave changes, Fair Work Agency, union recognition.
• August 2026: Electronic and workplace balloting.
• October 2026: Harassment duties, union access, tribunal time limits.
• January 2027: Unfair dismissal and fire‑and‑rehire reforms.
• 2027: Zero‑hours rules, equality reporting, additional union changes.

For full detail, see Key Dates & Timeline 

What the reforms mean for employers

Employers should prepare for:

• Higher compliance and reporting demands
• Increased dismissal and detriment claim risk
• More complex workforce planning (especially for casual and variable-hours staff)
• Greater union presence and activity
• Stronger expectations on harassment prevention and workplace culture

Detailed analysis is available in each reform‑area blog below.

Explore our full guidance on the Act

• Employment Rights Act 2025 – Key changes employers need to prepare for 
• Key Dates for the Employment Rights Act 2025 and How Employers Can Prepare
• Zero-hours, low-hours and casual workers: what the Employment Rights Act 2025 changes 
• Trade Union Reforms Under the Employment Rights Act 2025 
• Unfair Changes to Unfair Dismissal Under the Employment Rights Act 2025

How employers can start preparing now

• Update contracts and policies (SSP, flexible working, parental leave, harassment, zero‑hours).
• Audit casual, agency and low-hours arrangements.
• Review recruitment, probation and performance processes.
• Strengthen record‑keeping, ahead of longer tribunal time limits.
• Prepare rostering and scheduling systems for reasonable‑notice requirements.
• Train managers on new dismissal risks, union interaction and harassment duties.
• Track forthcoming consultations and secondary legislation.

Where to get support

Our employment team can help you understand how the Employment Rights Act 2025 will affect your organisation and guide you through the practical steps needed for compliance. We can work with you to review and update your contracts, policies and internal processes so they align with the new requirements coming into force across 2026 and 2027.

If your organisation needs support with workforce planning, we can help you prepare for the changes affecting dismissal risk, zero‑hours and low‑hours arrangements, trade union access and harassment prevention. We also provide tailored training for managers and HR teams, ensuring they feel confident applying the new rules in practice and responding appropriately to employee concerns.

Whether you’re at the early scoping stage or ready to implement changes, our specialists can provide clear, practical advice to help you navigate the reforms and reduce organisational risk. If you’d like tailored guidance for your business, we’re here to help.