The Employment Rights Bill received Royal Assent on 16 December 2025, becoming the Employment Rights Act 2025. The Employment Rights Act paves the way for significant reforms to UK employment law, with the key changes to be phased in during 2026/27. Employers should review these changes and check that their policies, processes, records, and contractual provisions are in line with the new Act.
This guide summarises the key changes, implementation timeline and what employers and employees should consider now to stay compliant.
What Is the Employment Rights Act 2025?
The Employment Rights Act 2025 updates and replaces parts of existing employment law to better reflect modern working practices. Its core aims include:
- Expanding statutory protections for workers
- Strengthening family-friendly and sickness rights
- Improving enforcement and compliance
- Increasing fairness and transparency in dismissal and contractual changes
The Act affects employers of all sizes and will require updates to contracts, policies, and HR processes.
Overview & What’s Changed
The ERA 2025 replaces and updates large parts of existing employment law, introducing new rights and protections for workers while also creating fresh duties for employers. Many provisions will come into force through secondary legislation and phased implementation throughout 2026–27.
The main proposed changes in order of introduction are:
- Trade Unions, from December 2025 – legislation on minimum service levels during industrial action has been repealed from December 2025. From February 2026, strike ballot and notice requirements will be relaxed, and electronic balloting will be introduced. From October 2026, employers will have a new duty to inform workers of their right to join a trade union, which must be detailed in the employment contract/statement of particulars.
- Parental Leave, April 2026 – paternity leave and unpaid parental leave will become a day-one right from April 2026. Dismissal of employees during pregnancy, or maternity, adoption, or shared parental leave, or within six months of their return to work, will be unlawful, except in certain circumstances (to be set out in future regulations).
- Statutory Sick Pay, April 2026 – statutory sick pay (SSP) will be available to all workers from April 2026, with no waiting period and no earnings threshold. SSP will be set at 80% of average earnings for workers who earn below the statutory rate of SSP.
- Holiday Records, April 2026 – employers will be required to keep records showing compliance with the rules on statutory holiday entitlement and pay for at least six years. Failure to do so will be a criminal offence.
- Collective Redundancy, April 2026 – there will be an increase in protective award for breaching the collective redundancy consultation requirements from 90 days’ pay to 180 days’ pay per affected employee from April 2026. From 2027, there will also be an expansion of the collective redundancy consultation requirements to encompass a business as a whole (no longer a single site).
- Equality Reporting, April 2026 (voluntary), 2027 (compulsory) – employers with 250+ employees will be required to publish menopause, gender, ethnicity, and disability pay gap action plans.
- Harassment at Work, October 2026 – employers will have a duty to take “all” reasonable steps to prevent sexual harassment, with steps specified by the regulations. There will be new whistleblowing protection for employees who complain of sexual harassment, and confidentiality provisions/NDAs will not be allowed to prevent employees from discussing allegations of discrimination or harassment. Employers will be liable for harassment (of any kind) by third parties, such as clients or suppliers, unless they take reasonable steps to prevent it.
- Dismissal and Rehire, October 2026 – it will become automatically unfair to dismiss an employee a) for refusing to agree to changes to terms and conditions in their employment contract b) so employers can re-engage them, on new terms c) to replace them with someone else.
- Employment Tribunal time limits, October 2026 – the time limit for workers to bring claims in the Employment Tribunal will increase from three to six months.
- Unfair Dismissal, January 2027 – the two-year qualifying service requirement for unfair dismissal claims will be reduced to six months, and the cap on compensation for unfair dismissal claims will be removed.
- Flexible Working, TBC 2027 – employers must consult with the employee before refusing a flexible working request, and any refusal must be ‘reasonable’.
- Bereavement Leave, TBC 2027 – bereavement leave will be extended to give employees the right to at least one week of bereavement leave following the death of a family member (the details of which will be set out in regulations). Bereavement leave is also planned to cover pregnancy loss.
- Zero hours / casual workers, TBC 2027 – If a zero/low hours worker’s hours regularly exceed the zero/minimum hours over a 12-week reference period (details to be confirmed), they will have to be offered a new contract reflecting regular hours. They will also have the right to notice of shifts in advance and compensation for cancellation.
When Do the Changes Take Effect?
The Act is being introduced in stages, these are the dates we know:
| Date | Key Changes |
|---|---|
| December 2025 | Act receives Royal Assent |
| February – October 2026 | Trade Union service levels, balloting and information |
| April 2026 | Parental Leave, Statutory Sick Pay, Holiday Records, Collective Redundancy reforms, and Equality Reporting (voluntary until 2027) |
| October 2026 | Harassment protection, Employment Tribunal time limits, and dismissal & re-hire reforms |
| January 2027 | Unfair dismissal qualifying period changes |
| TBC 2027 | Flexible Working, Bereavement Leave, and zero hour/ casual worker reforms |
Exact commencement dates may be confirmed or amended through regulations.
How THP Solicitors Can Help
Our employment law team offers employment law services for businesses as well as acting as employment solicitors for employees.
- Updating contracts and workplace policies
- Managing dismissals and redundancy processes
- Handling grievances, whistleblowing and discrimination issues
- Settlement agreements and dispute resolution
For more information about The Employment Rights Act, or any employment law issues, employers and employees can contact Laura Colebrook by Email: l.colebrook@thpsolicitors.co.uk or Tel: 0118 975 6622
Frequently Asked Questions
When did the Employment Rights Act 2025 become law?
The Act received Royal Assent in December 2025, with changes being introduced in stages from 2026 onwards.
Does the Act apply to all employers?
Yes. While some obligations vary depending on workforce size, the majority of reforms apply to employers of all sizes across the UK.
When will unfair dismissal rules change?
The qualifying period is expected to reduce to six months from January 2027, subject to final regulations.
How will statutory sick pay change?
From April 2026, SSP will be payable from the first day of sickness, with no minimum earnings threshold.
Do employers need to act now?
Yes. Employers should begin reviewing contracts, policies, and HR procedures well in advance of the phased implementation dates.