Employment Rights Act 2025: What the Updated Timeline Means

A revised roadmap for UK employment law changes

The Government has published an updated implementation timetable for the Employment Rights Act 2025, replacing the original roadmap issued in July 2025. For small and medium-sized employers, this revised timeline is important reading. While the overall direction of UK employment law reform hasn’t changed, the detail around when key changes will take effect certainly has.

If you run an SME, this update should offer a degree of reassurance. There is a significant amount of change coming, but it is being phased in over 2026 and 2027 rather than landing all at once. That gives employers valuable time to prepare properly instead of reacting at the last minute.

Fire and rehire changes pushed into 2027

One of the most notable shifts in the revised timetable relates to fire and rehire. These provisions were originally expected to come into force in October 2026. The updated Government timeline now confirms that fire and rehire protections will not take effect until 2027.

This doesn’t remove the risk altogether, but it does give employers more time to review contractual arrangements, workforce structures, and consultation practices without being rushed into decisions that could later be challenged.

Employment tribunal time limits remain uncertain

Employment tribunal time limits are another area where timing has softened. The policy paper now states that these changes will come into force “no earlier than October 2026”. That wording is deliberate and leaves scope for slippage.

For SME employers, this uncertainty reinforces the importance of following fair procedures and keeping clear records, particularly when dealing with dismissals or employee disputes. Even before the law changes, good process remains your strongest protection.

Trade union reform and electronic balloting

Trade union reform also features prominently in the updated roadmap. Electronic and workplace balloting for trade unions is now expected no earlier than August 2026, rather than being grouped in with the October 2026 changes as previously suggested.

While many SMEs don’t deal with trade unions on a daily basis, these reforms sit alongside wider changes to union recognition, access rights, and protections against detriment for industrial action. Collectively, they point towards a more active role for trade unions in the years ahead.

Unfair dismissal reform from January 2027

There is more certainty when it comes to unfair dismissal. The reduction in the qualifying period from two years to six months, alongside the removal of the compensatory award cap, is now clearly scheduled for January 2027.

This is a significant shift for SME employers. Employees will gain protection much earlier in their employment, and the financial exposure linked to tribunal claims will increase. Recruitment decisions, probation management, and early performance conversations will matter more than ever.

The Fair Work Agency arrives in April 2026

One firm date employers should note is the establishment of the Fair Work Agency on 7 April 2026. This new body will bring together enforcement of key employment rights, moving the focus from legislation alone to active compliance.

Although the Agency’s full remit will develop over time, its creation sends a clear message. Employment rights are expected to be applied in practice, not just written into policies and handbooks.

What SMEs should take from the updated timeline

Overall, the updated Employment Rights Act 2025 timeline doesn’t change the destination, but it does adjust the route. For SMEs, that adjustment matters. It provides time to plan, review contracts and policies, train managers, and seek advice before changes take effect.

If you’re unsure what action you should be taking now, and what can reasonably wait until later in 2026 or 2027, that conversation is worth having sooner rather than later. Understanding how these UK employment law changes apply to your business is the key to staying compliant without losing sleep.