Employment & HR

Update employment contracts for the Employment Rights Act 2025

Several contract clauses and handbook references need changing as the Employment Rights Act 2025 takes effect: sick pay, paternity and unpaid parental leave, tribunal time limits, the unfair dismissal qualifying period, clauses that let you vary terms, and the trade union rights statement due with written statements.

EnglandScotlandWales

Every employer with employees needs to review its contracts. Check your template contract, written statement and handbook for the clauses below. Change each from the date shown, and draft wording only for rules that are in force. The suggested wording is a starting point to adapt to your own terms.

What a written statement must contain

Clauses to change

  1. Sick pay, from 6 April 2026

    Remove any reference to waiting days or a lower earnings limit. SSP is paid for the days a person normally works, from the first full day of absence, at the flat weekly rate or 80% of average weekly earnings, whichever is lower, for up to 28 weeks. Suggested wording: "If you are too ill to work you will receive Statutory Sick Pay from the first qualifying day of your absence, if you are eligible, at the statutory weekly rate or 80% of your average weekly earnings, whichever is lower, for up to 28 weeks."

  2. Paternity leave, from 6 April 2026

    Remove any minimum service before leave. Paternity Pay still needs 26 weeks of continuous employment up to the qualifying week and earnings above the lower earnings limit. Suggested wording: "You may take up to two weeks' paternity leave, if you are eligible, from your first day of employment. To receive Statutory Paternity Pay you must also meet the service and earnings conditions."

  3. Unpaid parental leave, from 6 April 2026

    Remove the one-year service requirement. Suggested wording: "You may take up to 18 weeks' unpaid parental leave for each child, up to their 18th birthday, from your first day of employment, if you are eligible."

  4. Parental bereavement leave, already in force

    Keep a clause giving 2 weeks' leave from the first day of employment after the death of a child under 18 or a stillbirth after 24 weeks of pregnancy. A wider bereavement leave right, including pregnancy loss, is due in April 2027. Hold the new wording until its rules are published.

  5. Tribunal time limits, from 1 October 2026

    Change any statement of the time to bring a claim from 3 months to 6 months for problems on or after that date. Scottish breach of contract claims move on 9 November 2026.

  6. Statement of trade union rights, planned for 1 January 2027

    From that date you must give a worker a written statement that they have the right to join a trade union, at the same time as the written statement of particulars and at other times the government prescribes. The government has not yet set what it must say or its form, so do not draft wording yet.

  7. Unfair dismissal service, for dismissals from 1 January 2027

    Replace "two years' service" in disciplinary and dismissal clauses with 6 months, and remove references to the cap on the compensatory award. Do not make the change operative before the date.

  8. Clauses that let you change terms, planned for March 2027

    Review flexibility and variation clauses, and take advice before relying on them to change pay, hours, time off or pension terms.

  9. Zero-hours contracts, dates not set

    The Act provides a right to guaranteed hours and to reasonable notice of shifts, and compensation for short-notice cancellation, once the government sets dates. A clause that stops a zero-hours worker working for another employer is already unenforceable.

Dismissal rules behind the clauses

Roll out the changes

A change to an employee's terms needs their agreement, or the right procedure under their contract, so tell staff in writing before a change takes effect. When you vary terms, keep evidence that you gave the updated terms to each person. Have an employment adviser review the final wording, particularly for dismissal and variation clauses.

Official guidance