The Employment Rights Act 2025 received Royal Assent on 18 December 2025, introducing the most significant overhaul of UK employment law in decades. With changes rolling out across 2026 and 2027, employers must act now to understand their new obligations, update policies, and mitigate increased legal risks.
What Is the Employment Rights Act 2025?
The Employment Rights Act 2025 is a wide-ranging reform package designed to strengthen worker protections and enhance workplace fairness. The Act’s provisions are being implemented in phases, with key dates for employers to note.
Key Changes Already in Effect (April 2026)
Statutory Sick Pay Overhaul
From 6 April 2026, the three-day waiting period for Statutory Sick Pay (SSP) has been abolished. SSP is now payable from day one of sickness absence, and the Lower Earnings Limit has been removed, extending SSP eligibility to all workers regardless of earnings.
Family Leave Becomes a Day One Right
Paternity leave and unpaid parental leave are now available from day one of employment, removing previous qualifying service periods. Bereaved partners also have a new right to up to 52 weeks’ unpaid leave.
Whistleblowing Protections Extended
Sexual harassment is now expressly included in whistleblowing legislation, meaning workers who raise concerns in this area benefit from whistleblower protections.
Collective Redundancy: Increased Financial Exposure
The maximum protective award for failure to consult on collective redundancies has doubled from 90 to 180 days’ pay per affected employee.
New Record-Keeping Obligations
Employers must now keep adequate records of statutory annual leave and holiday pay for six years. Failure to comply amounts to a criminal offence.
Coming Next: October 2026
Extended Tribunal Time Limits
The time limit for bringing most employment tribunal claims will increase from three months to six months from the date of the incident or dismissal.
Third-Party Harassment Liability
Employers will become liable for harassment of staff by third parties unless they can prove they took “all reasonable steps” to prevent it. The duty to prevent sexual harassment also strengthens to “all reasonable steps”.
Trade Union Access Rights
Qualifying trade unions gain new rights to access workplaces physically and communicate with workers.
Major Reforms Coming in 2027
Unfair Dismissal: Six-Month Qualifying Period
From January 2027, the qualifying period for unfair dismissal protection reduces from two years to six months of continuous service. This means many more employees will have unfair dismissal protection.
The statutory cap on unfair dismissal compensatory awards will also be removed, making claims potentially much more expensive for employers.
Fire and Rehire Restrictions
Dismissing and re-engaging employees on inferior terms will become automatically unfair in most circumstances, unless the employer can demonstrate financial necessity to prevent insolvency.
Zero-Hours and Guaranteed Hours Reforms
Workers on zero-hours arrangements will have the right to a guaranteed hours offer based on the hours they regularly work.
Employer Readiness Checklist
Immediate Actions (April 2026)
- Update internal policies for day-one rights
- Review record-keeping systems
- Update whistleblowing policies
- Brief payroll teams on SSP changes
Prepare for October 2026
- Review anti-harassment policies
- Provide sexual harassment training
- Prepare for trade union access requests
Plan for January 2027
- Review dismissal processes
- Train managers on early-stage dismissals
- Audit zero-hours arrangements
How Aman Solicitors Can Help
Navigating these complex changes can be challenging. Our experienced employment law team can help you review contracts, update policies, train managers, and prepare for increased tribunal exposure.
Contact Aman Solicitors today for expert advice on the Employment Rights Act 2025 reforms.
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Disclaimer: This blog is for general informational purposes only and does not constitute legal advice. You should consult a qualified solicitor for advice regarding your individual circumstances.