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When does the Employment Rights Bill come into effect?
Written on 19 December 2025
It’s been the most talked-about topic in HR in 2025 – and the question everyone’s been asking is “when is the Employment Rights Bill coming in?”
The Employment Rights Bill has passed both Houses of Parliament on 16 December 2025 and received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025. This follows the House of Lords Employment Rights Bill debate, which ended with the Lords backing down during the third round of parliamentary ping-pong.
While this is a significant milestone, most reforms will be introduced in phases over 2026, giving employers time to prepare. Here’s what you need to know and do now – and how our team of expert UK-based Employment Law and HR Consultants can help your business get ahead.
When will the Employment Rights Act 2025 become law?
The Employment Rights Act 2025 is now law following Royal Assent. However, it’s worth noting that not all provisions will take effect immediately.
Some parts of the Act will come into force automatically two months after Royal Assent, while other parts will be brought into force in stages using commencement regulations. Some provisions will take effect quickly, while others will require consultations, impact assessments, and additional guidance before they are implemented.
For example, reforms to unfair dismissal compensation limits may only come in after the government publishes an impact assessment on removing the compensation cap. During the House of Lords Employment Rights Bill debate, David Pannick KC noted that removing the compensation cap in discrimination claims hasn’t caused disruption, suggesting similar reforms for unfair dismissal are unlikely to create chaos – but it’s still something you should monitor closely.
The only provision that comes into force immediately is the repeal of the provisions introduced by the Strikes (Minimum Service Levels) Act 2023. The Act had required certain minimum staffing levels during strikes in essential public services, effectively forcing some workers to attend work during industrial action. With the repeal, those minimum service requirements are removed, restoring the previous legal position where strike management and industrial action are governed by standard employment law and collective agreements.
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Timeline for the Employment Rights Act 2025
Based on current government timelines, employers should expect the main changes to be introduced in four phases: February 2026, April 2026, and October 2026, and 2027.
February 2026 (first phase)
This includes changes to industrial action balloting processes and Trade Union financing. These come into force automatically two months after Royal Assent.
April 2026 (expected second phase)
- Statutory sick pay reforms
- Removal of the three waiting days, making SSP payable from day one of absence
- Removal of the lower earnings limit, extending eligibility to lower-paid workers
- Day one family leave rights
- Paternity leave becomes a day one right
- Unpaid parental leave also available from day one
- Collective redundancy penalties
- The maximum protective award doubles from 90 days to 180 days’ pay where employers fail to consult properly in collective redundancy situations
- Expanded whistleblowing protection
- Complaints about sexual harassment become explicitly protected disclosures
- Trade Union reforms
- Simplified recognition process
- Introduction of electronic and workplace balloting
- Creation of the Fair Work Agency
- A new enforcement body that will actively oversee and enforce employment rights, with powers to investigate employers, issue penalties, and pursue claims on a worker’s behalf
October 2026 (expected third phase)
- Restrictions on ‘fire and rehire’
- Dismissals aimed at forcing contractual changes become automatically unfair – unless the employer can show there was no reasonable alternative to avoid serious financial harm to the business
- Stronger harassment duties
- Employers must take all reasonable steps to prevent sexual harassment
- Reinstated liability for third-party harassment (e.g. customers or clients)
- Extended Employment Tribunal time limits
- The window for employees to bring a claim extends from three to six months
- Further Trade Union rights
- New duties to inform workers of their right to join a union
- Increased access rights for union representatives
2027 (expected fourth phase)
- Unfair dismissal (1 January 2027)
- Qualifying service to bring an unfair dismissal claim reduces from two years to six months, and the current compensation cap is removed
- Gender pay gap and menopause action plans requirements for larger employers
- Enhanced rights for pregnant workers
- Changes to collective redundancy trigger thresholds
- New “reasonableness” test for rejecting flexible working requests
- Introduction of the obligation to offer guaranteed hours to low hours workers, as well as reasonable notice of shift changes
Employment Rights Act 2025: Steps to take now
This isn’t about panic – but it is about preparation. Employers who wait until the changes are live may find themselves on the back foot. Employers should be using the next few months to:
- Review affected policies and identify compliance gaps including sickness absence, family leave, and sexual harassment and check where current practices may fall short of new requirements
- Carry out impact assessments to understand how changes will affect your workforce, for example how many employees will now be eligible for SSP from day one and what this could cost
- Consider the impact on your 2026 workforce plans particularly if you’re planning redundancies or restructuring, and whether taking early action could reduce future complexity and risk
- Plan training and communications to ensure managers and HR teams understand the changes and can implement them effectively
- Stay informed by monitoring consultations, guidance, and codes of practice and be prepared to adjust plans as the finer details of these changes are clarified over time
Taking action now gives employers time to adapt policies, understand the workforce impact, and ensure compliance, rather than reacting under pressure once the new rules come into force.
Worried about new legislation? Let WorkNest take the weight off
Now the Employment Rights Bill has passed, thousands of employers are already seeking our support so they’re not left scrambling later. If you’re unsure where to start or how the Employment Rights Act 2025 will impact your organisation, our Employment Law and HR experts can take the pressure off through:
- Advice and guidance on how upcoming reforms will affect your workforce and operations, helping you turn complex legislation into practical steps
- Policy and procedure reviews to ensure compliance with upcoming changes to sickness absence, family leave, harassment, and other key areas
- Impact assessments to understand how the reforms will affect your employees and costs
- Training and communications for managers and HR teams so they can implement the changes effectively
- Ongoing updates on consultations, guidance, and commencement dates so your organisation stays ahead of requirements
Legal changes can be daunting and disruptive – we’re here to help you respond confidently, stay compliant, and reduce unnecessary chaos in 2026. For support, get in touch on 0345 226 8393 or request your free consultation using the button below.
