In December 2025, after much back and forth in the House of Lords, the Employment Rights Bill finally reached Royal Assent, becoming the Employment Rights Act 2025.
The Employment Rights Act 2025 introduces significant changes to workers’ protections. These changes will be introduced in phases from 2026 to 2027, aiming to make work fairer. As a result, employers will need to prepare for a series of substantial legal and operational changes over the coming years.
The Employment Rights Act addresses:
Throughout its journey through Parliament, amendments have been made to the original bill. We have outlined the changes employers can expect over the next couple of years, including the likely timing for employers.
Legislation has been passed to remove the minimum service level rules for strikes. The change is being brought into force through further regulations, starting from December 2025.
The following changes are expected to be introduced from February 2026, subject to commencement regulations:
Dismissal for participation in lawful industrial action is expected to attract significantly stronger protection, including the removal of the current 12-week qualifying period. In some circumstances, such dismissals are expected to be treated as automatically unfair. These changes are expected to take effect from February 2026.
Coming into effect on 6th April 2026, the rules will change to make it easier for trade unions to be recognised in the workplace and to allow members to vote electronically. As well as this, the rule requiring a 50% turnout in industrial action ballots will be removed. This is expected to be introduced in April 2026, once the changes to electronic voting have been implemented.
The following changes will come into effect on 6th April 2026.
The waiting period for Statutory Sick Pay (SSP) will be removed. Rather than being paid on the fourth day, it will be paid from the first day of illness. Plus, the lower earnings limit will be removed. As it stands, workers must earn a minimum amount to be eligible for SSP. Both changes will come into effect on 6th April 2026.
Sexual harassment disclosures will be treated as qualifying disclosures under whistleblowing law, giving whistleblowers legal protection from detriment and unfair dismissal. This will come into effect on 6th April 2026.
The Fair Work Agency will be launched to bring together existing enforcement bodies and take on responsibility for enforcing additional employment rights, including holiday pay and statutory sick pay. This will come into effect on 6th April 2026.
The maximum period for a protective award for failure to properly consult on collective redundancies will be doubled from 90 to 180 days’ pay. This will come into effect on 6th April 2026.
Strengthened protection against third-party harassment. Employers may be held responsible for harassment by third parties unless they can demonstrate that they took all reasonable measures to prevent it. This is for all types of harassment. To strengthen sexual harassment prevention, employers will need to take ‘all reasonable steps’ to prevent sexual harassment, rather than just ‘reasonable steps’. These changes are expected to come into force in October 2026.
Further statutory guidance is expected in 2027 to clarify what constitutes reasonable preventative steps.
Non-Disclosure Agreements Banned
A ban will be implemented on employers using confidentiality clauses to prevent workers from making allegations or disclosures about harassment or discrimination, or their employer’s response to allegations about discrimination or harassment. Exceptions may be created to which this ban does not apply, but it has not yet been confirmed. It is not known when the expected implementation date for this change is.
Ending the practice of ‘Fire & Rehire’ and ‘Fire & Replace’. Dismissals for failing to agree to contractual term changes will be considered automatically unfair. The only exception to this rule will be if a business is in severe financial hardship and has no other alternative. This is expected to come into effect in October 2026.
Employers will be required to consult with their workers when creating or reviewing their tipping policies. Plus, employers should update their tipping policy every 3 years. This is expected to be enforced in October 2026.
For most types of claims, the time limit for bringing a claim to an employment tribunal has lengthened from 3 months to 6 months. This provides a longer period for employees to bring a claim against an employer. This is expected to come into effect in October 2026.
The following changes are expected to come into effect in October 2026.
Workers participating in industrial action will be protected from detriment and unfair dismissal. This change will come into effect in October 2026.
New measures will apply to public sector outsourcing to prevent disparities in terms and conditions between former public sector employees and private sector staff. These changes will come into effect in October 2026.
A new negotiating body for the adult social care sector will be established in October 2026.
A new mandatory charter for seafarers will be introduced, setting higher standards for health and safety, pay, job security and rest breaks. This will come into effect in December 2026.
The qualifying period for the right to claim ordinary unfair dismissal is expected to be reduced from 2 years to 6 months. This new qualifying period can only be amended through primary legislation, making it more secure and difficult to change in the future.
This is expected to be enforced from 1st January 2027, meaning if an employee’s effective termination date is on or after 1st January 2027, they would benefit from the shorter qualifying period.
The current cap on compensatory awards will be removed, allowing successful claimants to receive unlimited financial compensation. This risks financial exposure to employers, especially those with high-earning employees.
A new right to unpaid bereavement leave will be introduced, covering pregnancy loss before 24 weeks, allowing employees time off to grieve. This will come into effect in 2027.
Strengthened protections against dismissal of pregnant employees, mothers on maternity, and mothers for at least 6 months after they return to work. There will be exceptions for specific circumstances. This will come into effect in 2027.
To end exploitative zero-hour contracts by introducing:
The end hirer (where the work is done) will generally be responsible for offering these guaranteed hours, but the agency could be held liable in some cases. This protection will be extended to agency workers. This is to prevent employers from bypassing zero-hour protections by using agency workers. This is expected to take effect in 2027.
An amendment to flexible working law is expected to be introduced in 2027. Employers who reject a flexible working request for a genuine business reason must provide their reasons and explain why the refusal is reasonable.
The following is expected to come into effect in 2027:
Obligation for employers to collectively consult and notify the government when they:
The maritime redundancy notification loophole will be closed, meaning operators providing regular services to British ports will not be able to avoid the collective redundancy notification requirement either.
In 2027, it will become mandatory for employers with 250 or more employees to create action plans around menopause and gender pay gaps. From 6th April 2026, it will be voluntary for employers to begin doing this.
Trade union members will have stronger protection against discrimination and blacklisting, and a new system will be introduced to help employers and unions cooperate more effectively. This is expected to come into effect in 2027.
Umbrella companies will be brought within the definition of employment agencies, allowing enforcement by the relevant bodies. This is expected to come into effect in 2027.
We can help employers navigate the Employment Rights Act 2025 and its changes with confidence, providing practical guidance, policy updates, and staff training to ensure compliance. Preparing now is crucial, not only to avoid potential legal pitfalls but also to foster a positive, fair, and well-informed workplace culture. With our support, employers can implement the necessary adjustments smoothly, stay ahead of regulatory requirements, and safeguard both their business and their employees.
To find out more information or to discuss the Employment Rights Act 2025, please get in contact with our team of experts.
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