Employment Rights Act 2025: What employers need to do now

Tools & Resources

Key learnings

Major day-one rights started in April 2026, including sick pay, paternity leave and unpaid parental leave, alongside Bereaved Partner's Paternity Leave and strengthened worker protections.
October 2026 and January 2027 bring bigger structural changes, including fire‑and‑rehire restrictions, harassment duties, six‑month tribunal limits, and earlier unfair dismissal protection.
Employers must update policies, systems, and implement manager training early to minimise risk and ensure a smooth transition as reforms roll out through 2026–27.

From April 2026, the United Kingdom began phasing in the most significant overhaul of employment law in a generation. The Employment Rights Act 2025 introduces earlier access to core rights, new protections for workers, strengthened enforcement, and major changes to how employers manage sickness, family leave, flexibility, trade union relations and redundancies. This article covers what’s changing, when, and how employers can prepare.

Employment Rights Act timeline at a glance

The Employment Rights Act 2025 is being introduced in phases. Here's a quick overview of the key dates employers need to be aware of.

Already in force:

Day one Statutory Sick Pay (SSP) for qualifying workers
Day one rights to unpaid parental leave
Removal of the qualifying period for paternity leave
Bereaved Partner's Paternity Leave
Enhanced maternity and pregnancy protections
Stronger flexible working rights
Collective redundancy reforms
Initial trade union reforms
Launch of the Fair Work Agency

October-November 2026:

New duty to prevent workplace sexual harassment, including harassment by customers, clients and visitors
Duty to inform workers of their right to join a trade union
Additional trade union access and recognition reforms
Enhanced employment rights enforcement measures
Employment Tribunal time limits increase from three months to six months

January 2027:

Reduction of the qualifying period for ordinary unfair dismissal claims from two years to six months
Removal of the cap on compensatory awards for unfair dismissal claims
Fire-and-rehire restrictions

Further reforms expected during 2027:

Guaranteed hours and predictable working pattern rights
Compensation for cancelled or curtailed shifts
Bereavement leave reforms
Pregnancy loss protections
Additional flexible working measures

What employers should prioritise now

Review harassment reporting and investigation procedures ahead of October 2026
Ensure managers understand the new workplace harassment duties
Review grievance, disciplinary and record-keeping processes ahead of Employment Tribunal time limit changes
Check onboarding materials and documentation in light of trade union reforms
Review recruitment and probation processes ahead of January 2027 dismissal reforms

A phased approach can help

The Employment Rights Act represents a significant package of reforms, but implementation is being spread over several years. Not every change will affect every employer in the same way, and most businesses do not need to tackle everything at once.

Focus first on the measures taking effect over the next six to 12 months, then build future reforms into your wider HR plans.

What’s changed in April 2026

Statutory Sick Pay from day one

The Lower Earnings Limit and the three day waiting period has been removed, making Statutory Sick Pay (SSP) a day one entitlement for all qualifying workers.

Day one parental leave and paternity leave

Employees gained the right to take unpaid parental leave from day one of employment, and the qualifying period for paternity leave will be removed. An estimated 1.5 million parents became newly eligible.

Bereaved Partner's Paternity Leave

From April 2026, Bereaved Partner's Paternity Leave gave bereaved fathers and partners the right to take up to 52 weeks of paternity leave where the mother or primary adopter dies within the first year of the child's life.

Enhanced maternity and pregnancy protections

New protections apply against dismissal for pregnant workers and for six months after returning from maternity leave, except in limited circumstances.

Strengthened flexible working rights

The existing day one right to request flexible working was strengthened. Employers must follow clearer refusal processes and provide reasoned explanations when requests cannot be accommodated. Additional flexible working reforms remain scheduled as part of the wider 2027 programme.

Collective redundancy changes

The maximum protective award for failing to properly consult in collective redundancy situations doubled, from 90 to 180 days’ pay.

Trade union processes updated

A first wave of trade union changes took effect on 18 February 2026, including simplified recognition procedures, reduced notice periods for industrial action, and extended protection against dismissal for taking part in industrial action.

Launch of the Fair Work Agency

A new single enforcement body, the Fair Work Agency, now has responsibility for enforcing core rights such as sick pay, holiday pay and minimum wage compliance.

What’s coming later in 2026–2027

October and November 2026: actions employers should be taking now

Several reforms are expected to take effect from October 2026, including:

A duty to inform workers of their right to join a trade union
Strengthened trade union access rights and recognition procedures
Stronger protections for trade union representatives
New requirements for employers to take all reasonable steps to prevent sexual harassment, including harassment by customers, clients and visitors
Employment Tribunal time limits increase from three months to six months
Enhanced enforcement powers and updated guidance on the fair distribution of tips

Zero hours and low hours contracts (2026–27)

Workers will gain stronger rights to predictable hours, reasonable notice of shifts, and compensation for last minute cancellations. These rights extend to agency workers.

January 2027 reforms

From 1 January 2027, significant changes to unfair dismissal law are expected to take effect:

The qualifying period for ordinary unfair dismissal claims will reduce from two years to six months.
The cap on compensatory awards for successful unfair dismissal claims will be removed.
Fire-and-rehire restrictions.

Employers recruiting during 2026 should remember that some employees may reach six months' service shortly after the reforms take effect, making robust probation, performance management and documentation processes increasingly important.

While employment tribunals will continue to calculate awards based on actual and projected losses, employers may face greater financial exposure in some cases. This increases the importance of robust recruitment, probation, performance management and employee relations processes.

Dates to be confirmed

Further Employment Rights Act reforms are expected during 2027, including a new entitlement to bereavement leave and protections relating to pregnancy loss before 24 weeks. The Government is consulting on the detailed regulations before implementation.

Five practical steps to prepare

Update policies and contracts

Review and revise your policies covering sickness absence, parental leave, maternity protection, redundancy, flexible working and trade union processes to reflect April 2026 changes.

Train line managers

Ensure managers understand:

How to handle day one rights
Sickness absence from day one
Strengthened flexible working processes
New maternity and pregnancy protections
Trade union obligations

Review HR and payroll systems

Systems should be able to:

Pay SSP from day one
Remove Lower Earnings Limit checks
Administer updated parental, paternity and bereavement leave
Record flexible working decisions
Track compliance with new notice periods and redundancy consultation rules

Model the financial impact

Budget for:

Day one SSP costs
Increased parental and bereavement leave uptake
Doubled protective awards
Higher dismissal related risk from 2027

Communicate changes clearly

Share a simple guide with staff outlining upcoming changes and where to access updated policies. This helps set expectations early and reduce confusion.

Next steps…

Build these changes into your 2026/27 roadmap so you stay on track for compliance.
For a practical guide to the new workplace harassment duties and what employers should do now, read: How to prepare your business for stronger workplace harassment protections.
Speak with our partner, Croner, if you need support putting new policies and processes in place.
Keep an eye on government updates and consultations, as several reforms depend on forthcoming secondary legislation.
Want to keep track of wider employment law developments? Read our guide to Recent and upcoming changes to employment law you need to know, which covers other reforms, consultations and future measures affecting employers beyond the Employment Rights Act.