The Employment Rights Act 2025 introduces a wide range of reforms aimed at strengthening employee protections and improving job security across the UK. Rather than taking effect all at once, the changes will be rolled out in stages between April 2026 and 2027, giving employers time to prepare. Below is a summary of the key changes and when they are expected to come into force.
From April 2026
Day-one rights for family leave
Employees will gain the right to take:
- Paternity leave from day one of employment
- Unpaid parental leave from day one
This removes previous service requirements and ensures immediate access to family-related rights.
Statutory Sick Pay (SSP) reforms
Changes to SSP will include:
- Removal of the lower earnings limit, making more workers eligible
- SSP payable from the first day of sickness, instead of after waiting days
This will increase access to sick pay but may also raise costs for employers.
Redundancy and dismissal protections (early changes)
Initial steps will be introduced to strengthen protections around dismissal and redundancy processes, with further reforms expected later.
From Late 2026
Stronger duty to prevent workplace harassment
Employers will be required to take proactive steps to prevent sexual harassment in the workplace. This includes:
- Reviewing and updating policies
- Providing staff training
- Taking action to prevent harassment from third parties, such as customers
Failure to meet these duties could lead to increased legal liability.
Trade union and workplace rights
Changes will make it easier for trade unions to:
- Gain recognition
- Access workplaces
- Organise industrial action
These reforms aim to strengthen collective employee representation.
From 2027
Unfair dismissal reforms
One of the most significant changes will be:
- Reducing the qualifying period for unfair dismissal from two years to six months
This means employees will gain protection much sooner, increasing the importance of fair and well-documented HR processes. There are also proposals to:
- Increase or remove compensation limits for claims
Restrictions on “fire and rehire”
New rules will limit the ability of employers to:
- Dismiss employees and re-engage them on worse terms
Such dismissals may be considered automatically unfair, unless there is a clear and justifiable business reason.
Zero-hours contract reforms
Workers on irregular contracts will gain new rights, including:
- The right to guaranteed hours based on regular working patterns
- Reasonable notice of shifts
- Compensation for short-notice cancellations
These changes are particularly relevant for sectors relying on flexible or casual labour.
New enforcement powers
Alongside these changes, a new enforcement body (often referred to as a Fair Work Agency) will be introduced. This organisation will:
- Enforce employment rights more actively
- Take action against non-compliant employers
- Support workers in resolving issues
What employers should do now
Although some changes are still ahead, employers should begin preparing now by:
- Reviewing employment contracts and policies
- Updating HR procedures for discipline and dismissal
- Planning for increased employment costs (e.g. sick pay and guaranteed hours)
- Training managers on new responsibilities
Early preparation will help reduce risk and ensure compliance as the changes come into force.
Summary
The Employment Rights Act 2025 represents a major shift in UK employment law, with a clear focus on improving job security and worker protections. With key changes taking effect from April 2026 through to 2027, employers should act now to understand the impact and prepare accordingly.