The Employment Rights Act 2025 introduces one of the most significant updates to UK workplace law in a generation, and affects almost every employer regardless of size. With phased implementation throughout 2026 and 2027, many of the changes will directly impact contracts, policies, day-to-day HR practices and employer obligations.
This guide breaks down your core legal responsibilities under the new Act in clear, practical terms, explains what’s changing when, and highlights the steps your business should be taking now to stay compliant, reduce risk and protect your workforce.
If you're unsure how these changes will affect your organisation or want help reviewing your HR policies, our employment law solicitors are here to support you.
Contents:
Where we are now
The Act delivers a broad package that strengthens worker protections, modernises enforcement and rebalances parts of the industrial relations framework. Some elements took effect at, or soon after, Royal Assent. This includes the repeal of the Strikes (Minimum Service Levels) Act 2023 and much of the Trade Union Act 2016. The remaining union law changes are being switched on by commencement orders and transitional rules through early 2026.
As these provisions come into force, you will see simpler balloting and notice rules for industrial action, and stronger protection from dismissal for staff who take part in lawful action.
The government has also confirmed a new single enforcement body, the Fair Work Agency, which will consolidate several existing regulators and expand the state’s role in recovering underpayments and enforcing basic employment standards.
Key dates and what changes when
February 2026: union law transitions begin
Transitional guidance points to February 2026 as the start for several union law changes, including updates on political funds and changes to notice and ballot rules. Now is the time to review your strike response playbooks and recognition procedures, should these be applicable to your business.
6 April 2026: major reforms go live
Statutory Sick Pay (SSP): SSP becomes payable from the first sick day rather than from the fourth day, abolishing the three-day waiting period for SSP. The lower earnings limit is removed, so more lower-paid and part-time workers will qualify. The weekly prescribed amount rises to £123.25 in April 2026. Where an employee’s average weekly earnings are lower, pay is capped at 80% of average weekly earnings. Update payroll settings, sickness policies and manager guidance.
Family leave, day one rights: Paternity leave and unpaid parental leave become day one rights for eligible employees. Further, it will be permitted to take paternity leave after a period of shared parental leave. Update and remove any old qualifying periods from policies and templates and brief managers.
Collective redundancy: The maximum protective award in collective redundancy cases doubles. That increases the cost exposure where information and consultation fall short. Build in more time for planning, elections, engagement and record keeping.
Trade union reforms: Expect a simpler recognition process and permission for electronic balloting from April. Make sure HR and IR teams understand the new mechanics.
Fair Work Agency: The new agency launches as the single enforcement body. It is expected to bring together HMRC National Minimum Wage enforcement, the Employment Agency Standards Inspectorate and the Gangmasters and Labour Abuse Authority, and to take on additional areas such as SSP and holiday pay enforcement. Map your compliance touchpoints before going live.
October 2026: further protections and workplace standards
Fire and rehire restrictions: The Act places significant limits on dismissing and re-engaging employees as a means to impose new terms. Build planning and consultation into any change programme well in advance.
Preventing harassment, including third-party: There is a new duty to take all reasonable steps to prevent sexual harassment. Further, employers will be liable for third-party harassment in relation to all protected characteristics meaning they must not permit a third party (customers, suppliers, visitors etc) to harass their employees. Update risk assessments, training plans and supplier clauses.
Employment tribunal time limits extended: the time limit to bring most claims will extend from three to six months, meaning ex-employees will have longer to raise a claim.
What is planned into 2027, and what shifted
Unfair dismissal: Protection starts after six months’ service, not two years’ service (but no longer a day one right as first proposed). The government plans to phase this in during 2026 and 2027, subject to commencement regulations. Adjust probation policies and onboarding risk assessments with this in mind.
Zero hours and insecure work: Further curbs on zero hours arrangements are expected through 2026 and 2027, with detail to follow in secondary legislation. Await the regulations, but consider building a workforce plan that can accommodate more predictable or guaranteed hours.
Bereavement leave, menopause and transparency pilots: The government has signalled additional measures on family and health, and some transparency pilots. Keep a watching brief for consultations and new codes of practice.
Cost context: The government’s updated impact assessment suggests the annual cost to business is around £1 billion after phasing and concessions. This can help with board briefings and budgeting.
What employers should do now
1) Payroll and absence by March 2026
Implement SSP entitlement on day one of sick leave and the removal of the lower earnings limit. Check systems can apply the £123.25 weekly rate and the 80% cap from April 2026. Update sickness policies and manager FAQs.
2) Family leave by March 2026
Remove qualifying periods for paternity and unpaid parental leave across contracts, handbooks and intranet guidance. Update shared parental leave policies. Train line managers on day one eligibility and evidence requirements.
3) Redundancy governance in Q1 to Q2 2026
Refresh collective consultation playbooks. Build extra time for elections and engagement. Increase sign-off levels, given the higher protective award risk from April.
4) Industrial relations in Q1 2026
Update strike response protocols for the February and April changes, including notices, ballots and dismissal protections. Audit recognition arrangements and internal communications.
5) Harassment prevention by September 2026
Move to a proactive, risk-based model. Set a board-level policy statement, run a “reasonable steps” risk assessment, deliver targeted training for public facing teams and add supplier and venue clauses that address third-party behaviour. Keep evidence logs.
6) Change programmes during 2026
If your strategy used dismiss and re-engage, redesign it. Put more emphasis on early information, meaningful alternatives, incentives and fair process ahead of the October restrictions.
7) Enforcement readiness in Q1 to Q2 2026
Map where the Fair Work Agency could interact with your business. Typical areas include National Minimum Wage, holiday pay, SSP, agency worker rules, tribunal award penalties and modern slavery. Build an evidence pack and assign clear owners.
8) Probation and early service management from late 2026
Redraft policies to reflect a six-month unfair dismissal threshold and consider reducing contractual probationary periods to under six-months. Make sure performance and attendance processes can operate fairly within that window.
Summary
The Employment Rights Act is here, and it arrives in stages. April brings the big operational changes like SSP, family leave, redundancy risk, union rules and the new enforcement body. October tightens up harassment prevention and fire and rehire. Into 2027, keep an eye on unfair dismissal at six months, zero hours reforms and transparency initiatives. A rolling plan owned by HR, Legal and Finance will keep you compliant without slowing growth.
If you would like a second pair of eyes on your policies or a board-ready plan, our employment law solicitors can help.
