Employment Rights Act 2025
Navigating the Employment Rights Act 2025: Everything employers need to know
The UK employment landscape is changing more than it has in decades. This page is your plain-English guide to the Employment Rights Act 2025 – what’s changing, when it’s changing, and what employers need to do to stay compliant.
We’ll keep this page updated as new information is available, alongside expert blogs, practical resources, and employer toolkits to help you protect your business and support your people.
Whether you’re an SME owner, HR lead, or senior manager, these changes will affect how you recruit and manage your workforce. This page is designed as a practical reference point, with clear explanations, timelines, and real-world examples highlighting key employer risks.
How to use this page
Read straight through or dive in to the sections most relevant to you using the quick links below.
We’ll continue updating this resource as the Act is phased in across 2026 and 2027.
While this page explains what’s changing, applying the law in practice can feel complex. If you need support or have questions specific to your business, our team is here to help. Start by working through our FREE compliance checklist and contact us for any actions this highlights that you want our help with.
Overview: What is the Employment Rights Act 2025?
Enacted on 18 December 2025, the Employment Rights Act 2025 introduces wide-ranging reforms to the Employment Rights Act 1996 and other core labour laws. Its aim is to strengthen worker protections while reshaping how employers manage recruitment, contracts, and workplace practices.
Key changes include new rights for parents, changes to the way you pay for sickness absences, additional rights related to bereavement, the right to guaranteed hours, enhanced protections against harassment and discrimination, stronger trade union access, and a significant reduction in the qualifying period for unfair dismissal.
Why it matters to you as an employer
Increased Liability: With the removal of the two-year qualifying period for unfair dismissal, even short-term hires will carry higher legal risk.
Transparency: Any contract provision attempting to stop a worker from disclosing harassment or discrimination is now void.
Additional Costs: Sick pay eligibility from day 1 and new statutory leave rights will increase salary costs and may create a need for extra staff cover.
Management Responsibility: There will be a greater need for robust record keeping, monitoring and clear consistent processes that are followed by everyone.
Companies that prioritise getting this right and lead with transparency, consistency and fairness will be legally compliant, less likely to receive tribunal claims and better positioned to attract and retain top talent.
What you need to do now
Review Probationary Periods
With the qualifying period for unfair dismissal reducing from two years to six months, your recruitment and early-performance management must be flawlessly executed.
Audit "Zero-Hours" Staff
Identify workers on zero-hours or “low hours” contracts who have worked regular patterns as they may soon be entitled to a formal offer of guaranteed hours.
Review Confidentiality Clauses
Ensure your contracts, agreements and policies do not contain clauses that prevent staff from making allegations of harassment or discrimination.
Update Policies and Handbooks
Prepare to update policies regarding ED&I, anti-harassment, sickness, parental rights, disciplinary, grievance and dismissals, whistleblowing, probation, performance management, flexible working, shift patterns, and redundancy consultation.
Feeling overwhelmed by the changes? Don’t know where to start? Work through our FREE compliance checklist and contact us for any actions this highlights that you want our help with and we can take the stress away.
What’s changing and when?
The Act will be delivered in phases across a two-year period. This approach is designed to ensure that employers have time to plan and prepare.
December 2025 – Royal Assent. The first measures came into effect at Royal Assent or soon after. These repeal the Strikes (Minimum Service Levels) Act 2023 and parts of the Trade Union Act 2016, restoring workers’ ability to take industrial action without excessive legal barriers.
Phase 1: April 2026
April 2026 will see the implementation of ‘Day 1 rights’ for paternity leave, unpaid parental leave, and bereaved partners paternity leave. The waiting period for statutory sick pay will be removed along with the lower earnings limit and Fair Work Agency will be launched.
Phase 2: October 2026
October 2026 will see an increase in the time limited to bring a tribunal claim from 3 to 6 months, tightened tipping laws, employers will need to take ‘all reasonable steps’ to prevent sexual harassment of their employees, and any harassment from third parties as well as new regulations regarding trade union access and sectoral negotiating bodies.
Phase 3: 2027
2027 will see the reduction of the unfair dismissal qualifying period from two years to six months meaning anyone that has 6 months continuous service on 01 January 2027 will automatically have protection against unfair dismissal.
Further measures will be rolled out in 2027 including fire and rehire protections, changes to zero hours contracts, the implementation of gender pay gap and menopause action plans, rights for pregnant workers, flexible working, bereavement leave and an industrial relations framework.
Key Policy Changes
Unfair Dismissal & The 6-Month Rule
Prior to this policy change coming into play employees require two years of continuous service before they can claim “ordinary” unfair dismissal. This currently gives employers a long window to assess fit without significant legal risk. Once the policy is implemented on the 1st January 2027 the qualifying period is reduced to six months. This immediately applies to any employee who will have at least 6 months continuous service by the implemenation date. Effective recruitment, onboarding, and rigorous performance monitoring during the first 180 days will be essential for risk mitigation. For example: if a software firm hires a developer, under the old rules, they could wait for nearly 2 years to address persistent but minor performance issues. Now, if they do not manage and document these issues within the first six months, any dismissal could trigger a full unfair dismissal claim.
Harassment & Confidentiality: “The End of Silencing”
This policy change is due in phase 1 (April 2026) and introduces critical protections that will require immediate policy updates. Previously whistleblowing protections did not explicitly categorize sexual harassment as a “qualifying disclosure” and Non-Disclosure Agreements (NDAs) were frequently used in settlements to prevent victims from speaking out. This policy change means that from April this year Sexual Harassment as Whistleblowing is now explicitly a “qualifying disclosure,” granting victims protection from detriment for reporting it and contractual provision is now void if it purports to prevent a worker from disclosing information regarding harassment or discrimination. For example: a worker signs a settlement agreement after experiencing harassment. Under the new Act, even if the agreement contains a confidentiality clause, the worker cannot be legally stopped from disclosing that harassment to authorities or in future proceedings.
Day 1 Rights Beyond Dismissal – Strengthened Family & Leave Rights
The Act strengthens “Day 1” protections for various parental and carer leave entitlements. Paternity leave, unpaid parental leave, and bereaved partners paternity leave in phase 1 and looking to phase 3 changes to bereavement leave. Currently entitlements are often restricted to specific scenarios (e.g., Parental Bereavement Leave was limited to the loss of a child). This planned policy change, will expand this to general “Bereavement Leave” and is expected to clarify that if an employee loses multiple people, they are entitled to leave for each person. For example: an employee loses both a parent and a sibling in the same month. Previously, they might have struggled to secure statutory leave for both. Now, the Act ensures leave is granted for each loss. Additionally, the Act introduces specific protections against dismissal during or after pregnancy, distinct from general unfair dismissal rules, effectively creating a higher “shield” for expectant mothers.
Zero-Hours: The Right to Guaranteed Hours
The Act creates a “Right to Guaranteed Hours”. Currently zero-hours contracts provide limited no certainty for employees as they could be kept on “standby” indefinitely with no guaranteed income. Once the government have completed the consultation on the new rules they will be implemented in phase 3. It is expected that employers will have to make a “guaranteed hours offer” to qualifying workers, although what that will mean is still unclear. Additionally, workers will also have a right to reasonable notice of shifts and cancellations. For example: a warehouse worker on a zero-hours contract consistently works 30 hours a week for several months. The employer will be legally required to offer them a contract that guarantees those 30 hours, rather than keeping them on a zero-hour basis.
Flexible Working: Strengthening Rights
Flexible working rules had an overhaul in 2024 and The Act doesn’t change any of those already in place. Employers will still have the right to refuse flexible working requests but the added caveat that the refusal is reasonable based on the existing eight considered factors. Crucially, the time limit to bring most tribunal claims (including flexible working and many other employment rights) will be doubling in October 2026 from three to six months. For example: an employee requests a 4-day week for childcare. Previously, a generic “it won’t suit our workflow” might have sufficed. Soon, the employer will have to provide a reasonable justification based on specific business impact, and the employee will have six months to challenge a refusal in court.
Trade Union Access: A New Workplace Dynamic
This is a major part of the Act (Part 4) that many employers might overlook until it affects them. Previously trade union access was largely at the employer’s discretion unless a formal recognition agreement was already in place. The Act introduces a new framework for trade unions to access workplaces for organising and recruitment. It also formalises the role of equality representatives, granting them statutory rights to paid time off for training and carrying out their functions. For example: A union identifies a group of interested workers at a factory. They can now trigger a formal process to gain access to the site to talk to staff. Simultaneously, a designated staff Equality Rep can now claim paid time off to attend training on how to handle workplace bullying.
Frequently Asked Questions
Do I have to follow the new legislation?
Yes you do!
We’ve been talking about the Employment Rights Bill/Act for such a long time it might feel like you don’t have to do anything but it’s here now and the changes are starting. Ignoring them and carrying on like they haven’t happened could see you in hot water at employment tribunal and will have heavy financial penalties for your business.
Should I be worried about the Act?
There’s no reason to worry about the Act being implemented. It’s being done in phases rather than all at once to help employers make sure they get it right. The government still need to consult on some measures so at the moment no-one knows what all the rules will be, not even them!
Most importantly you’ve got us by your side to guide you at each step and if you’re a current client of ours, none of the changes are really any different to anything we’ve been advising you to do anyway!
When do these changes actually start?
While the Act was enacted in late 2025, many provisions will be phased in through 2026 and 2027 via specific regulations (see our section on ‘what’s changing and when’.
Does the 6-month unfair dismissal rule apply to current employees?
Any employee who has over six months continuous service on 1 January 2027 will have protection against unfair dismissal. For example a new starter on 1 July 2026 will have 6 months continuous service on the implementation date and will be protected.
Can I still use zero-hours contracts?
Yes, despite the scaremongering headlines zero hours contracts aren’t being banned but there will be consulation in 2026 which is expected to add new rules to their usage such as offering guaranteed hours and you giving reasonable notice for any available shifts and shift changes.
Can I make changes to an employee's contracts?
Making changes to an employee’s terms is informally known as Fire & Rehire (dismissing from one contract and immediately re-employing on another). While these changes can be made when mutually agreed such as through a flexible working request, when it is employer imposed it can be problematic.
The Act will make it so that ‘restricted variations’ to core terms such as pay, hours, holiday and pensions will not be possible, there is also consultation taking place now (ends 1 April 2026) as to whether expenses and benefits and shift patterns will be considered a restricted variation.
How has redundancy consultation changed?
From 1 April 2026 the “protected period” for collective redundancy consultation will be increased from 90 days’ gross pay to 180 when employers fail to consult correctly on collective redundancies (collective redundancy is where 20 or more employees are dismissed from one location). The Act is also looking to change the location criteria so that it covers an organisation as a whole rather than per location.
What are the new "Day 1" rights?
April 2026
Employees will no longer have to have any qualifying service to be eligible for Paternity Leave, Unpaid Parental Leave (not to be confused with Emergency Dependent Leave) and Paternity Bereavement Leave. (There are no changes to eligibility for the statutory pay if applicable to the leave type.)
Statutory Sick Pay will be payable from the first day of absence.
Has the time limit for tribunal claims changed?
Not yet, but in October 2026 the standard time limit for making an employment tribunal claim will increase from three months to six months.
My business has over 250 employees - are there any new reporting requirements?
Yes. Under the new Act, employers with 250 or more employees will be required to develop and publish an “Equality Action Plan”. These plans must detail the specific steps your business is taking to advance gender equality, specifically focusing on addressing the gender pay gap and supporting employees going through the menopause.
But there’s no need to panic, implementation is expected to be some point in 2027 so there is plenty of time for vivoHR to assist you in drafting these plans to ensure they meet the new statutory standards.
Download our FREE Employment Rights Checklist
Related Insights & Employer Resources
The Employment Rights Act 2025 is being introduced in phases, and understanding how each change affects your business in practice is key. Alongside this page of guidance, we publish in-depth blogs and practical resources that explore specific parts of the legislation in more detail — with clear employer-focused guidance.
Parental and Family Rights Changes in 2026
New parental and family rights introduced in 2026 mean employees can access more leave from day one of employment. In this blog, we explain what has changed, what it means for employers, and how to stay compliant.
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