Employment Rights Act 2025: What Is in Force and What Comes Next?

Is the Employment Rights Act 2025 now law?

Yes. The Employment Rights Act 2025 became law on 18 December 2025.

The Act introduces wide-ranging changes affecting sickness absence, family leave, trade union rights, workplace harassment, Employment Tribunal claims, unfair dismissal, contractual changes and other areas of employment law.

Implementation is being phased to give employers time to prepare. Some changes also require further regulations, consultation or guidance before they can take effect.

Future dates remain subject to parliamentary processes and may change. Employers should therefore continue monitoring official updates and be prepared to adjust their plans as more detail becomes available.

Which Employment Rights Act changes are already in force?

Several important reforms have already taken effect.

Trade union and industrial action changes

The repeal of the Strikes (Minimum Service Levels) Act 2023 took effect when the Employment Rights Act received Royal Assent.

Further trade union reforms followed in February and April 2026. These included changes to industrial action requirements and the statutory trade union recognition process.

Employers should not assume these reforms only matter where a union is already recognised. Changes to recognition, workplace access and worker communications may affect a much wider range of organisations.

Statutory Sick Pay reform

Important Statutory Sick Pay changes took effect on 6 April 2026.

The reforms:

• Removed the three waiting days, making SSP payable from the first qualifying day of sickness absence

• Removed the lower earnings limit, extending eligibility to more employees

• Introduced a percentage-based rate for some lower earners

Employers should already have updated their sickness absence, payroll and reporting processes to reflect these rules.

Day-one family leave rights

Statutory Paternity Leave and Unpaid Parental Leave became day-one rights on 6 April 2026.

Employees no longer need to complete a qualifying period of service before becoming eligible for these types of leave, although the usual notice and eligibility requirements continue to apply.

Employers should ensure contracts, handbooks, family leave policies and manager guidance reflect the new position.

Collective redundancy protective awards

The maximum protective award for failing to comply with collective redundancy consultation requirements doubled from 90 to 180 days’ pay on 6 April 2026.

This significantly increases the potential financial exposure for organisations that fail to plan or manage collective consultation correctly.

Employers considering redundancies or restructuring should take advice early, before decisions are finalised or communicated.

Whistleblowing and sexual harassment

Protections were strengthened for workers who report sexual harassment.

In certain circumstances, a report of sexual harassment may qualify as a protected disclosure. This creates additional considerations for employers handling complaints, grievances and disciplinary matters.

Managers must understand when whistleblowing protections may apply and avoid taking action that could be viewed as detrimental treatment.

The Fair Work Agency

The Fair Work Agency was established on 7 April 2026, bringing together and expanding state enforcement of certain employment rights.

Its remit includes areas such as Statutory Sick Pay and holiday pay. Employers are also required to retain adequate holiday pay records for six years.

The introduction of the Agency represents a shift towards more active enforcement. Employers should make sure they can demonstrate compliance through accurate, accessible records.

What changes are coming next?

Further reforms are scheduled for the remainder of 2026.

Electronic and workplace trade union ballots

Electronic and workplace balloting for statutory trade union ballots is due to take effect by 31 August 2026.

Employers should consider how easier and more accessible balloting could affect employee engagement, workplace relations and the likelihood of future union activity.

Employment Tribunal time limits

From 1 October 2026, the time limit for bringing most Employment Tribunal claims will increase from three to six months.

This gives employees longer to consider and pursue a claim. It may also mean employers must retain evidence, correspondence and management records for longer before knowing whether a dispute has concluded.

The change makes consistent documentation even more important. Employers should ensure managers record key conversations, decisions and the reasons for any formal action.

For breach of contract claims in Scotland, the change is scheduled to take effect on 9 November 2026.

Stronger trade union rights

Several further trade union reforms are scheduled for 30 October 2026, including:

• A new duty to inform workers of their right to join a trade union

• Stronger workplace access rights for trade unions

• Changes to recognition and derecognition processes

• New rights and protections for trade union representatives

• Extended protection against detriment for taking industrial action

These duties will create practical requirements for employers, including those that do not currently recognise a union.

Organisations should review employee documentation, communication processes and arrangements for responding to workplace access requests.

Stronger workplace harassment duties

From 30 October 2026, employers will be required to take all reasonable steps to prevent sexual harassment of their employees.

This strengthens the existing duty to take reasonable steps and is likely to raise the standard expected of employers.

A new obligation will also prevent employers from permitting harassment by third parties such as customers, clients, contractors or service users.

Employers should use the time available to:

• Review harassment policies

• Conduct workplace risk assessments

• Consider risks created by customers and other third parties

• Introduce clear reporting routes

• Train managers and employees

• Record the preventative action taken

• Review contracts and expectations applying to third parties

A policy alone is unlikely to be enough. Employers will need to show that they have taken practical, evidence-based steps to prevent harassment.

Public sector outsourcing and adult social care

Further measures expected in October include the reinstatement of the two-tier code for certain public sector outsourcing arrangements.

Regulations are also expected to establish the Adult Social Care Negotiating Body in England as part of the proposed Fair Pay Agreement framework.

These changes will be particularly relevant to public sector employers, contractors and adult social care providers.

Tipping practices

Changes strengthening the law on tips are expected by the end of 2026.

Employers in hospitality and other sectors where tips are common should monitor the detail and prepare to review their tipping policies and allocation processes.

What changes are coming in January 2027?

January 2027 will bring some of the most commercially significant changes for employers.

Six-month unfair dismissal protection

From 1 January 2027, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months.

The change will apply to dismissals taking place from that date. This means the risk is already beginning to build for employers with employees approaching six months’ service.

The current cap on compensatory awards for unfair dismissal will also be removed.

Employers should review:

• Recruitment and selection processes

• Probation periods

• Onboarding arrangements

• Performance management procedures

• Manager review points

• Documentation and record-keeping

• Short-service dismissal processes

Waiting until a six-month probation meeting to raise concerns may be too late. Managers will need to identify performance or conduct issues earlier and address them through a fair, documented process.

Read our guide to six-month unfair dismissal protection for more information.

Fire and rehire protections

New protections relating to fire and rehire are also scheduled for January 2027.

Dismissals connected with an employee refusing to agree to certain changes to their employment terms will become automatically unfair, except in limited circumstances where the employer is experiencing serious financial difficulties and cannot reasonably avoid the change.

Employers considering contractual changes should review their plans carefully and take advice before beginning consultation.

What other changes are expected during 2027?

Further reforms are expected during 2027, although some implementation dates and details remain subject to consultation.

These include:

• Mandatory gender equality and menopause action plans

• Enhanced dismissal protections for pregnant women and new mothers

• Changes to collective redundancy consultation thresholds

• New requirements relating to flexible working requests

• Bereavement leave, including pregnancy loss

• Regulation of umbrella companies

• Guaranteed-hours rights for certain workers

• Rights to reasonable notice of shifts and compensation for short-notice changes

• Restrictions on the misuse of non-disclosure agreements in harassment and discrimination cases

Employers should avoid making substantial changes based on assumptions while consultations remain ongoing. However, workforce planning, policy reviews and manager preparation can begin before every technical detail is finalised.

What should employers do now?

The volume of reform means employers need a structured action plan rather than a series of last-minute policy updates.

Priority actions should include:

1. Confirm what has already changed

Check that policies, payroll processes, contracts and manager guidance reflect the reforms introduced in April 2026.

This should include Statutory Sick Pay, family leave, collective redundancies and whistleblowing.

2. Prepare for October

Review trade union communications, workplace access procedures, harassment risk assessments and Employment Tribunal record-keeping.

Customer-facing organisations should pay particular attention to the new third-party harassment duty.

3. Review probation and performance management

The introduction of six-month unfair dismissal protection means managers will need to identify and address concerns much earlier.

Probation should be an active process involving regular reviews, clear expectations, support and documented decisions.

4. Review contracts and policies

Identify which documents will require amendment and plan consultation where contractual changes may be needed.

WorkNest’s contracts and handbooks service can help ensure your documents remain compliant and appropriate for your organisation.

5. Train managers

Managers will be responsible for applying many of these changes in practice. Appropriate employment law training can help them make fair decisions, keep suitable records and recognise when specialist advice is needed.

6. Keep your plan under review

Government guidance, regulations and implementation dates may continue to develop. Assign responsibility for monitoring updates and reviewing your organisation’s action plan regularly.

Prepare for Employment Rights reform with confidence

The Employment Rights Act is changing how employers recruit, manage, support and dismiss employees.

WorkNest can help you understand your current exposure, prioritise the changes that matter most to your organisation and put the right policies, processes and manager capability in place.

• 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.

(The timetable is based on the government’s latest Employment Rights Act implementation update, published on 16 July 2026. Future dates remain subject to parliamentary processes and may change.)