An employer’s roadmap to the Employment Rights Act 2025
The Employment Rights Act 2025 received Royal Assent on 18 December 2025, marking a watershed moment for a UK employment law; one of the most significant rollouts of changes in decades.
Through the Employment Rights Act 2025, the Government wants to usher in a new era of fairness at work and worker security, as well as improved industrial relations – it believes making workers’ and unions’ rights a heightened priority ultimately benefits both workers and employers.
In this article, we outline a clear roadmap of the key changes under the Employment Rights Act 2025. The updates will roll out in stages over this year, with a significant cohorts of changes set to come into effect in February, April, and October 2026, as well as further reforms in 2027.
By preparing now, employers can avoid risks such as tribunal claims (where the average award is around £11,914) and build a more resilient organisation.
Immediate changes (Royal Assent and Early 2026 – Effective from 18 February 2026).
Some provisions took effect shortly after Royal Assent, with trade union and industrial action reforms activating from mid-February 2026. These are significant changes to trade union laws that ultimately make it easier for unions to call for and sustain industrial action – here is a brief summary of these changes:
- Repeal of the Strikes (Minimum Service Levels) Act 2023 – Removes previous restrictions on strike actions in key sectors.
- Removal of the 10-year ballot requirement for trade union political funds.
- Simplification of industrial action notices and ballot notices – Makes processes easier for unions.
- Protections against dismissal for taking industrial action – Dismissal becomes automatically unfair, with extended protections.
- These early changes strengthen trade union rights, making industrial action more straightforward, so review any union-related policies promptly.
Key changes due in April 2026
This phase introduces family-friendly rights, sick pay adjustments, and enhanced protections — many will become effective from day one of employment.
Statutory Sick Pay (SSP) reforms |
The lower earnings limit (£125 per week) and three-day waiting period will be removed. SSP becomes payable from the first day of sickness, even for low earners. This is aimed at supporting financially vulnerable workers and reduces added financial stress during sickness. |
Day-one paternity and unpaid parental leave |
Service requirements will be eliminated, allowing eligible employees to access these rights immediately upon starting employment. This helps working families balance responsibilities from the outset. |
Improved whistleblowing protections |
Allegations of sexual harassment become protected disclosures, broadening safeguards for those raising concerns. |
Trade union measures |
Simplified recognition processes and electronic workplace balloting reforms make union activities more accessible and easier to undertake lawfully. |
Establishment of the Fair Work Agency |
A new enforcement body launches to promote fairness, enforce labour rights (e.g., holiday pay and SSP), and provide guidance—expect increased scrutiny on compliance. |
Doubling of collective redundancy protective award |
The maximum period rises from 90 to 180 days, increasing potential awards for failures in consultation. |
Changes due in October 2026
Focus shifts to harassment prevention, contractual fairness, and union access.
Duty to take all reasonable steps to prevent sexual harassment |
Employers must demonstrate proactive measures to create safer, more respectful workplaces.
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Protection against third-party harassment |
Liability extends to harassment by clients, customers, or contractors—requiring policies to address external risks. |
Restrictions on fire and rehire practices |
Use is limited to exceptional circumstances; otherwise, dismissal for refusing new terms becomes automatically unfair. |
Tightening of tipping laws |
Mandatory consultation with workers on tip allocation ensures fairer distribution. |
Extended trade union rights |
Greater protections for representatives, enhanced access rights, and a requirement to provide new starters with a written statement on their right to join a union. |
Employment tribunal time limits extended |
From three to six months, giving claimants more time to pursue cases. |
Major reforms in 2027 (including from 1 January 2027)
These build a modern framework for relations, flexibility, and security.
Unfair dismissal rights after 6 months |
The qualifying period drops from two years to six months. Statutory probation periods apply, with retrospective effect for employees meeting the threshold at implementation. This significantly lowers the bar for claims. |
Enhanced flexible working access |
Employers must explain refusals in detail. The eight existing fair reasons for refusal remain unchanged, but the process supports better work-life balance for family, health, and other needs. |
Reforms to zero-hours and low-hours contracts |
Workers gain rights to guaranteed hours reflecting usual patterns, plus notice or compensation for shift changes—promoting predictable income. |
Further harassment protections |
Regulations detail "reasonable steps" for prevention, aiding enforcement. |
Enhanced dismissal protections for pregnant women and new mothers |
Stronger safeguards during pregnancy, maternity leave, and return to work. |
Bereavement leave |
Time off to grieve, with automatic job security. |
Gender Pay Gap and Menopause Action Plans |
Voluntary from April 2026, mandatory in 2027 to advance equality and women's health support. |
Regulation of Umbrella Companies |
Tighter controls to ensure fair treatment. |
Collective consultation thresholds |
New thresholds in redundancy situations. |
In summary
The Employment Rights Act 2025 represents a shift toward greater fairness, security, and collaboration in the workplace. By implementing these phased changes thoughtfully, you can safeguard employee wellbeing, reduce legal and reputational risks (as seen in rising tribunal cases — up 12% in some reports), boost morale, and enhance productivity.
Early preparation — such as updating policies, training managers, and reviewing contracts — will position your business to thrive under the new framework.
Need guidance on your responsibilities under the Employment Rights Act 2025? Contact our Croner experts on 0844 561 8133 and quote 923596 for specialised support.