18/12/2025
Employment Rights Act 2025 – what you need to know (at a glance)
We finally have greater clarity on the direction of travel, but the detail will continue to unfold over the next few years – so don’t panic.
The Employment Rights Bill received Royal Assent today and is now the Employment Rights Act 2025 (ERA 2025).
This is a major shift in UK employment law, but most of the changes will be phased in over several years, so there’s time to plan.
Unfair dismissal – the big headline
The qualifying period is set to reduce from two years’ continuous service to six months – currently anticipated from January 2027 (timing still to be confirmed).
Key dates and changes:
📅 April 2026 – first wave of reforms. We expect to see:
- Day-one rights to paternity leave and unpaid parental leave
- Strengthened whistleblowing protection, expressly covering sexual harassment complaints
- Statutory Sick Pay (SSP) reform – removal of waiting days and the lower earnings limit
- Launch of a new Fair Work Agency
- Increased penalties for failures in collective redundancy consultation
📅 October 2026 – further changes expected around:
- Fire-and-rehire practices
- Tipping rules
- Expanded trade union rights
- A new duty on employers to take “all reasonable steps” to prevent sexual harassment
📅 January 2027 and beyond
January 2027 – the reduction of the unfair dismissal qualifying period to six months is likely to take effect (not yet confirmed).
During 2027 we’re likely to see additional changes, including:
- Enhanced protections for pregnant workers
- Expanded flexible working rights
- New bereavement leave provisions
- Limits on zero-hours arrangements
- Regulation of umbrella companies
Several consultations are already underway, including:
- Pregnancy-related dismissal protections
- Unpaid bereavement leave
- More are expected during 2026, likely covering:
- Fire-and-rehire restrictions
- Zero-hours contracts
- Umbrella companies
- Tipping law reform
- Collective redundancy processes
- Flexible working rights
Let me know if you'd like a replacement set of policies and other support as we get to grips with the changes.
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