The Employment Rights Act 2025 introduces a wide range of reforms that will be phased in between 2026 and 2027 and will bring some of the most important updates to UK employment law in recent years. The legislation is designed to improve protections for workers while creating clearer standards for employers.

Although the Act has been introduced, most of the changes will be brought in gradually over the next couple of years. This means employers will have time to review their management practices, update policies and train their managers for the new rules.

Some updates will affect recruitment and probation periods, while others will influence how organisations manage sickness leave and changes to contracts.

Key changes employers should be aware of

Earlier access to unfair dismissal rights

Employees are expected to gain the right to claim unfair dismissal much sooner than under the current rules. At present, most workers must complete two years of service before they can bring a claim. Under the new approach, this protection will apply after a much shorter period; it has now been proposed that employees will need six months service to claim unfair dismissal, meaning employers will need to follow fair procedures, particularly the management of probationary periods, from the start of employment. The changes are expected to come into effect on 1 January 2027. 

Changes to unfair dismissal compensation

The Act is expected to increase the financial limits on unfair dismissal compensation by January 2027, meaning tribunal claims could become more costly for employers. As a result, organisations should review and aim to strengthen their disciplinary and capability procedures, to ensure dismissals are handled fairly and consistently.

Updates to Statutory Sick Pay

From 6 April 2026, changes will come into effect making Statutory Sick Pay accessible to a wider group of workers. Under the proposed changes, the current three waiting days before SSP begins are expected to be removed; entitlement will become a day one right and eligibility rules will be broadened so that more people qualify. This means employees could receive SSP at the beginning of illness and will support those in insecure or irregular work who do not have access to the payment.

Workplace Harassment

Employers will have a legal duty to take “all reasonable steps” to prevent workplace harassment, including harassment by third parties such as customers, clients, or service users. This goes further than current law, which only requires employers to defend claims after harassment has occurred. The new duty will mean that employers must show they actively took steps to prevent harassment in the first place and will come into effect October 2026.

Fire‑and‑Rehire Restrictions

The Act introduces significant restrictions on fire‑and‑rehire practices and will come into effect January 2027. Employers will face tightened rules when seeking to dismiss and re‑engage staff on new terms. New protections aim to prevent employers from using fire‑and‑rehire as a shortcut to impose less favourable terms. Employers will be required to genuinely explore alternatives before considering dismissal.  

Trade Union Reforms

The Act introduces a significantly strengthened framework for trade union rights, with changes being phased in from late 2026 through 2027. Key reforms include enhanced protections for union representatives such as expanded rights to paid time off for union duties and stronger safeguards against detriment or dismissal linked to union activity. 

Unions will also gain easier access to workplaces, both in person and digitally, to engage with workers and support organising efforts. In addition, the collective bargaining process will be modernised, with simplified recognition procedures and new obligations on employers to negotiate in good faith once a union is recognised. 

Further measures, including tougher action against unlawful blacklisting, are expected to come into force during 2027 as part of the wider rollout.

Zero hours contracts 

The Act introduces new protections for workers on zero‑hours. Employees will gain the right to request a predictable working pattern after a qualifying period, helping to reduce uncertainty around hours and income. Employers will also face tighter rules on the use of exclusivity clauses and must provide clearer information about expected working hours and terms from the outset. These changes will come into effect in 2027 as part of the wider rollout of the reforms.

The Fair Work Agency

The fair work agency is designed to modernise how workplace rights are monitored and enforced across the UK and will act as the central enforcement body for the new employment rights framework. It will oversee compliance with workplace laws, investigate complaints, enforce protections around pay, contracts, harassment and working conditions, and issue penalties or improvement notices where employers fall short. 

The Agency will also provide guidance to help organisations understand and implement the new rules as they come into force, further information on this will be available over the coming months. 

Updates to family leave rights

A number of family-related leave rights will become available from the first day of employment, rather than after a qualifying period. This is intended to give employees greater support when balancing work and family responsibilities, particularly during major life events such as becoming a parent. A summary of the changes is listed below:

1. Paternity Leave will become a day‑one right

Paternity leave will become a day one right, this will become effective from 06 April 2026, and employees will no longer need 26 weeks’ service to qualify.  All fathers/partners qualify from their first day of employment and this applies to both child births and adoptions.  

2. Unpaid Parental Leave

Unpaid parental leave will become a day one right; this will become effective from 06 April 2026. All employees will gain immediate access to up to 18 weeks’ unpaid parental leave per child.  The current notice rules remain, but eligibility will widen significantly.   

3. Bereaved partner’s paternity leave

This will be a new right introduced to bereaved fathers and/or partners to take up to 52 weeks leave if the mother or primary adopter passes within the first year. This will become effective from 06 April 2026.

4. Removal of restrictions linked to shared parental leave

Employees will no longer be prevented from taking paternity leave if they have already taken shared parental leave. This gives families more flexibility in how they structure time off and will become effective from 06 April 2026. 

What employers should do now

Employers should begin reviewing their current practices, as early preparation will make it easier to adjust once the changes are fully introduced.

• One of the first steps is to review employment policies and contracts, including probationary, disciplinary, sickness and capability policies and management procedures which will all need a formal review.
• Family leave policies and/or management procedures should be checked to ensure they will meet the updated legal requirements.
• Manager training will also be important; many employment disputes occur because managers are not fully aware of the correct procedures. Providing clear guidance on the new rules can reduce risk and help create a more consistent approach across the organisation.

Implementation dates and guidance will continue to evolve as the government rolls out the changes. 

Please note: the relevant policies and procedure documents on our compliance system FPM Core are in the process of being updated to comply with updates to the law.