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Employment Rights Act 2025 Roadmap for Employers

The Employment Rights Act 2025 introduces extensive changes affecting how your business can recruit, manage, support, and dismiss employees.

Some measures are already in force. Further reforms will follow throughout the remainder of 2026 and into 2027, including longer Employment Tribunal time limits, stronger harassment and trade union duties, new fire and rehire protections and six-month unfair dismissal rights.

With so many changes arriving in phases, employers need more than a list of legal developments. They need a clear plan for what to review, when to act and where the greatest risks lie.

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The Employment Rights Act 2025 implementation timeline​ 2026/2027

This roadmap set out the key Employment Rights Act 2025 dates and the practical steps employers should be taking at each stage.

Date

Key reforms

Already in force

SSP, day-one family leave, collective redundancy awards, whistleblowing, trade union recognition and the Fair Work Agency

By 31 August 2026

Electronic and workplace trade union ballots

1 October 2026

Employment Tribunal time limits increase from three to six months

30 October 2026

Stronger harassment duties and extensive trade union reforms

By the end of 2026

Stronger tipping protections

1 January 2027

Six-month unfair dismissal rights, uncapped compensatory awards and fire and rehire protections

During 2027

Further reforms covering flexible working, collective redundancies, guaranteed hours, bereavement leave and other employment rights

Future implementation dates remain subject to parliamentary processes and may change. Employers should continue monitoring official guidance as the detail develops.

Phase one: Confirm that April 2026 changes have been implemented

This is the start of the Employment Rights Act 2025 roadmap. Several significant reforms took effect in April 2026. You should now be checking these changes are fully embedded rather than treating them as future actions. Here's a breakdown:

From 6 April 2026:

  • SSP became payable from the first qualifying day of sickness absence

  • The lower earnings limit was removed

  • More lower-paid employees became eligible

  • A percentage-based rate was introduced for some employees

Day-one family leave

Statutory Paternity Leave and Unpaid Parental Leave became day-one rights, subject to employees meeting the relevant notice and eligibility requirements.

The qualifying periods of 26 weeks for Paternity Leave and one year for Unpaid Parental Leave no longer apply.

Collective redundancies

The maximum protective award for failing to comply with collective redundancy consultation requirements increased from 90 to 180 days’ pay.

This substantially increases the potential cost of getting consultation wrong.

Whistleblowing

Protections were strengthened for workers who report sexual harassment. Employers must consider whether a sexual harassment complaint may also qualify as a protected disclosure.

Trade union recognition

Changes to the statutory trade union recognition process also took effect, including the removal of the likely majority test at the application stage and the 40% support threshold in recognition ballots.

The Fair Work Agency

The Fair Work Agency was established on 7 April 2026. Its remit brings together and strengthens the enforcement of certain employment rights, including areas such as holiday pay and Statutory Sick Pay.

Employers must also retain adequate holiday pay records for six years.

Employer actions

If you have not already done so:

  • Update sickness absence and family leave policies

  • Check payroll systems and statutory sick pay (SSP) calculations

  • Review redundancy procedures

  • Update whistleblowing and harassment policies

  • Brief managers on the new rights

  • Review trade union recognition processes

  • Check holiday pay record-keeping arrangements

  • Communicate relevant changes to employees

Phase two: Prepare for trade union balloting changes

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

Making ballots more accessible could increase participation in statutory trade union ballots and influence workplace organising activity.

Employers should not assume this only matters if they already recognise a union. The wider package of reforms will make union recognition and workplace access more relevant to non-unionised organisations too.

Employer actions

  • Assess current employee relations and workforce engagement

  • Identify potential areas of workplace dissatisfaction

  • Brief senior leaders and managers on the reforms

  • Review procedures for responding to union activity

  • Ensure managers understand employees’ rights relating to union membership and activity

The objective should not be to discourage lawful union activity. It should be to ensure the organisation responds appropriately, consistently and in line with the law.

Phase three: Get ready for longer Employment Tribunal time limits

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

For breach of employment contract claims in Scotland, the extended time limit is scheduled to take effect on 9 November 2026.

Employees will have longer to consider whether to pursue a claim. Employers may therefore face a longer period of uncertainty after a dispute, dismissal or formal process has concluded.

The change makes accurate record-keeping even more important. Managers must be able to demonstrate what happened, why decisions were made and whether a fair process was followed.

Employer actions

  • Review document retention periods

  • Strengthen record-keeping expectations for managers

  • Ensure important conversations and decisions are documented

  • Check grievance, disciplinary and dismissal procedures

  • Retain relevant evidence for longer

  • Review how potential claims and legal holds are managed

  • Consider whether ER case management systems provide sufficient oversight

Read more about how to reduce risk in our employment tribunals claim support section.

Phase four: Prepare for stronger trade union and harassment duties

A significant group of reforms is scheduled to take effect on 30 October 2026.

Trade union reforms

The October changes include:

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

  • Stronger workplace access rights for trade unions

  • Changes to recognition and derecognition procedures

  • New rights and protections for trade union representatives

  • Extended protection against detriment for taking industrial action

These changes will affect employers regardless of whether they currently recognise a union.

Employer actions

  • Plan how the required trade union statement will be communicated

  • Review contracts, written statements and onboarding documents

  • Develop a process for handling workplace access requests

  • Train managers on workers’ trade union rights

  • Review recognition and derecognition procedures

  • Ensure managers do not subject employees to detriment because of lawful union activity

  • Strengthen employee voice and workforce engagement

Workplace harassment reforms

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 increase the level of preventative action expected from employers.

A new obligation will also prevent employers from permitting harassment by third parties, including customers, clients, service users, patients, contractors and suppliers.

This will be particularly important in customer-facing sectors such as retail, hospitality, healthcare, education and transport.

Employer actions

  • Conduct a workplace harassment risk assessment

  • Identify roles and environments with greater third-party exposure

  • Review sexual harassment and equality policies

  • Introduce clear and accessible reporting routes

  • Provide appropriate employee and manager training

  • Review contracts and expectations applying to third parties

  • Record the preventative measures taken

  • Monitor whether controls remain effective

  • Ensure complaints are handled promptly and fairly

Having a policy will not be enough on its own. Employers will need to demonstrate that practical preventative measures have been identified, implemented and reviewed.

Phase five: Prepare for sector-specific and tipping reforms

Further changes are expected during the final months of 2026.

These include:

  • Regulations establishing the Adult Social Care Negotiating Body in England

  • The reinstatement of the two-tier code for certain public sector outsourcing arrangements

  • Stronger tipping protections

  • Seafarer Protection Regulations

  • The effect will depend on the organisation’s sector and workforce arrangements.

Employer actions

Relevant employers should:

  • Identify which sector-specific reforms apply

  • Review workforce and procurement arrangements

  • Assess the potential cost and operational impact

  • Review tipping policies and allocation processes

  • Consider the effect on contractors and outsourced services

  • Monitor regulations and supporting guidance

Phase six: Prepare for January 2027

Some of the most commercially significant reforms are scheduled for 1 January 2027.

Six-month unfair dismissal rights

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 1 January 2027. The current statutory cap on compensatory awards will also be removed.

Employers will have considerably less time to identify and address conduct, capability or performance concerns before ordinary unfair dismissal protection applies.

A six-month probation period will not postpone the employee’s statutory rights. If the employee has six months’ qualifying service, those rights will apply regardless of whether probation has formally ended.

Employer actions

  • Review probation lengths and review points

  • Introduce regular probation meetings

  • Set clear objectives from the start

  • Train managers to address concerns promptly

  • Document feedback, support and agreed improvements

  • Review onboarding and performance management processes

  • Avoid waiting until the final probation meeting to raise concerns

  • Take advice before dismissing an employee approaching six months’ service

    Read our guide to six-month unfair dismissal protection.

Fire and rehire protections

New protections will restrict employers’ ability to dismiss employees who refuse to agree to certain changes to their contractual terms.

These dismissals will generally become automatically unfair unless the employer is experiencing serious financial difficulties and cannot reasonably avoid making the change.

The protection will also apply to certain fire and rehire reforms where dismissed employees are replaced by different workers on altered terms.

Employer actions

  • Identify planned contractual changes

  • Review whether changes can be completed through agreement

  • Assess the business rationale and available alternatives

  • Build sufficient time into consultation plans

  • Review collective consultation requirements

  • Take legal advice before proposing dismissal and re-engagement

  • Keep detailed records of the options considered

Employers considering changes to terms should review their plans before the new restrictions take effect.

Phase seven: Plan for further reforms during 2027

A further group of measures is expected during 2027, although some dates and technical details remain subject to consultation. These include:

  • Mandatory gender equality and menopause action plans

  • Enhanced dismissal protections for pregnant women and new mothers

  • A new collective redundancy consultation threshold

  • Changes to flexible working

  • Bereavement leave, including pregnancy loss

  • Guaranteed-hours rights

  • Reasonable notice of shifts and compensation for short-notice changes

  • Regulation of umbrella companies

  • Further industrial relations reforms

  • Restrictions on the misuse of non-disclosure agreements

Employers do not need to make speculative changes before the detail is confirmed. However, organisations can begin assessing which parts of their workforce, policies and operating model are likely to be affected.

Your Employment Rights Act action plan

The scale of reform means you need a coordinated programme rather than a series of isolated policy updates. A practical action plan should cover six areas:

1. Governance

Assign clear responsibility for monitoring reforms, making decisions and reporting progress.

2. Policies and documentation

Identify which contracts, handbooks, written statements and procedures need to change.

3. People processes

Review recruitment, onboarding, probation, absence, performance, grievance, disciplinary and dismissal processes.

4. Manager capability

Identify what managers need to know and where additional training is required. Practical employment law training for managers can help reduce inconsistent decisions and avoidable disputes.

5. Systems and evidence

Ensure HR and ER systems can record key decisions, retain appropriate evidence and provide visibility of emerging risk.

6. Employee communication

Plan how changes will be communicated and how employees will be given access to updated policies and information.

Start preparing your business with confidence

Employment Rights reform is already underway. Employers that wait until each implementation date arrives may face rushed policy changes, unprepared managers and greater legal and operational risk.

WorkNest can help you understand your exposure, prioritise the work required and put the right policies, systems and manager capability in place.

Our Employment Law and HR specialists provide practical support across compliance planning, contracts and handbooks, complex employee relations matters, manager training and organisational change.

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Get support for the Employment Rights Act changes

The Employment Rights Bill presents a significant shift in the UK employment landscape. While the phased implementation offers time to prepare, the scale of change means employers should begin planning now. Early engagement will not only ensure compliance but also position your organisation as a fair and forward-thinking employer.

Why not speak to our Employment Law experts for early advice and guidance? Our team can help you navigate upcoming changes, update your policies, and stay compliant – minimising disruption and stress.

For support, get in touch on 0345 226 8393 or request your free consultation using the button below.

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