Employment Rights Act 2025 – Where we are now

Over the past year I’ve had more conversations about the Employment Rights Act 2025 than almost any other change in employment law. There’s a lot of noise, a lot of headlines, and understandably a lot of concern from employers who want to do the right thing but aren’t quite sure what applies yet and what doesn’t.

This article is designed to do one thing: explain clearly and calmly where we are now, what changes are coming, and when employers actually need to act.

Is the Employment Rights Act 2025 in force?

The Employment Rights Act 2025 is now law. It received Royal Assent on 18 December 2025. However, that does not mean that all of the changes apply immediately.

This legislation was always designed to be phased in over time. Large parts of the Act require further regulations, updated guidance and formal consultation before they can take effect. In reality, that means 2026 and 2027 are the years when employers will really start to feel the impact.

What we are in right now is a transition period. The direction of travel is clear, but many of the practical details are still being shaped. Acting too early or reacting purely to headlines can create unnecessary risk, which is why understanding the timeline matters.

Employment law changes expected from April 2026

April 2026 is expected to mark the first major implementation phase of the Employment Rights Act 2025, with changes that will affect day-to-day people management.

One of the most significant changes relates to Statutory Sick Pay. SSP is expected to become a day-one right, meaning employees will be entitled to sick pay from the first day of absence rather than having to wait until day four. At the same time, the lower earnings limit is expected to be removed, bringing many more workers into scope.

This is not just a payroll issue. It will affect how absence is managed, how early conversations are handled, and how confident line managers feel when dealing with short-term and intermittent sickness.

April 2026 is also expected to introduce day-one rights to paternity leave and unpaid parental leave. Currently, eligibility depends on length of service. Removing that requirement means new starters will have access to these rights from the start of employment, which will require updates to policies, onboarding information and manager guidance.

Another important change expected from April 2026 is the increase in collective redundancy protective awards. The maximum award for failing to consult properly is expected to double from 90 days’ pay to 180 days’ pay. This significantly raises the stakes for employers and reinforces how critical it is to follow the correct consultation process.

We are also expecting strengthened whistleblowing protections to come into force around this time, including clearer recognition that disclosures relating to sexual harassment and workplace culture are protected. Alongside this, the new Fair Work Agency is expected to be established, bringing stronger and more visible enforcement of employment rights.

Employment law changes expected from October 2026

October 2026 is shaping up to be the second major milestone in the Employment Rights Act rollout.

One of the most closely watched changes is the restriction on so-called fire and rehire practices. While changing terms and conditions has never been straightforward, the new rules will make it significantly harder to dismiss and re-engage employees as a way of forcing through contractual change. Employers will need to demonstrate genuine consultation, clear business rationale and fair process.

October 2026 is also when we expect the sexual harassment duty to be strengthened. The existing requirement to take reasonable steps to prevent sexual harassment is expected to move to a duty to take all reasonable steps. Employers will also have explicit responsibilities in relation to harassment by third parties such as customers and clients.

This change goes well beyond having a policy in place. Employers will need to show that they have assessed risk, delivered meaningful training, provided safe reporting routes and taken prevention seriously.

Another important change expected in October 2026 is the extension of employment tribunal time limits. Most claims are currently subject to a three-month time limit. This is expected to increase to six months, meaning disputes can arise much later and making good record keeping and consistent decision-making even more important.

Further changes expected around this time include tighter rules around tipping, particularly affecting hospitality and leisure businesses, and a range of trade union measures. These include obligations to inform workers of their right to join a trade union, strengthened union access rights and enhanced protections for union representatives.

Major Employment Rights Act changes expected in 2027

Some of the most far-reaching reforms are expected to take effect in 2027.

The change employers talk to me about most is unfair dismissal. The qualifying period to bring an unfair dismissal claim is expected to reduce from two years to six months. While the final commencement date will be confirmed through regulations, the clear expectation is that this change will apply during 2027.

This fundamentally alters how employers need to approach probation periods, early performance concerns and decision-making in the first year of employment. Informal approaches that may previously have been tolerated inside the two-year window will no longer be safe.

Reforms aimed at reducing the use of exploitative zero-hours arrangements are also expected in 2027. These include rights linked to guaranteed hours, notice of shifts and compensation for cancelled work, with expected application to agency workers as well.

Bereavement leave is another area scheduled for introduction in 2027. This includes specific provisions relating to pregnancy loss before 24 weeks. For employers, this will require a sensitive and compassionate approach alongside clear policy guidance.

Enhanced protections for pregnant workers and new mothers are also expected to come into force during 2027, alongside mandatory gender pay gap action plans and menopause action plans. These measures reflect a broader shift towards accountability and meaningful action rather than box-ticking.

Employment Rights Act consultations currently taking place

It’s important to understand that consultation is still ongoing and will shape how the law works in practice.

Current consultations include enhanced dismissal protections for pregnant women and new mothers, bereavement leave including pregnancy loss, fair pay agreements in adult social care, and draft codes of practice covering electronic and workplace balloting in trade union elections.

These consultations matter. The outcomes will determine how employers are expected to comply, not just what the legislation says in principle.

What employers should be doing now

From my perspective, 2026 should be treated as a preparation and embedding year. This is the time to review policies, strengthen manager capability, address cultural risks and ensure your processes are robust before enforcement increases.

Waiting until changes are fully live is almost always the most expensive and stressful approach. Employers who use this time wisely will be in a much stronger position when the reforms take effect.

We will continue to update this page as regulations are finalised and commencement dates are confirmed. If you are unsure how the Employment Rights Act 2025 applies to your organisation, or you would like support preparing for the changes, this is exactly the sort of work we support employers with every day.