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Updating employment contracts for ERA 2025

Checklist of changes needed to employment contracts and written statements following the Employment Rights Act 2025. Covers the new trade union membership notification requirement, updated SSP and family leave entitlements, zero-hours contract terms, and revised dismissal and tribunal provisions.

Guide summary

Review and update your employment contracts and written statements to reflect the Employment Rights Act 2025 changes. From April 2026, you must tell employees about their right to join a trade union. Update Statutory Sick Pay and family leave to day-one entitlements. Prepare for future changes to unfair dismissal rules and tribunal time limits.

  • Add trade union membership notification to contracts from April 2026
  • Remove 3‑day waiting period and earnings limit from SSP clauses
  • Update paternity leave to day‑one entitlement, no 26‑week wait
  • Update parental leave to day‑one entitlement, no 1‑year wait
  • Add statutory bereavement leave clause including early pregnancy loss
  • Review zero‑hours contracts for new guaranteed hours rules
  • Prepare for unfair dismissal qualifying period to drop to 6 months
  • Prepare for tribunal time limit to extend from 3 to 6 months
  • Keep dismissal and disciplinary records for longer periods
  • Update all written statement templates before April 2026
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The Employment Rights Act 2025 introduces several changes that affect the content of employment contracts and written statements of employment particulars. If you employ anyone, you should review and update your template contracts, written statements, and employee handbooks to reflect these changes.

This guide provides a checklist of the contract terms that need updating, template wording suggestions, and practical steps for rolling out changes across your workforce.

When to act: Update template contracts and written statement templates before April 2026. Existing employees should receive updated written statements when their terms are next amended or on request.

What needs updating

ERA 2025 affects written statements, statutory entitlements described in contracts, and several procedural provisions. The sections below set out what to check and change.

Contract update checklist

Written statement requirements

  • Add trade union membership notification: Written statements must now inform employees of their right to join a trade union. Add a clear statement to the principal statement issued on or before day one of employment
  • Review all mandatory particulars: Confirm that every item required under Part I of the Employment Rights Act 1996 (as amended by ERA 2025) is included in your template

Statutory Sick Pay (SSP)

  • Update SSP entitlement description: SSP is a day-one entitlement with no lower earnings limit (LEL). Remove any references to the previous 3-day waiting period or LEL qualifying threshold
  • Review sick pay clauses: If your contract describes the statutory SSP scheme, ensure the description reflects the current rules

Family leave entitlements

  • Paternity leave: Update to reflect day-one entitlement. Remove any reference to a 26-week qualifying service requirement
  • Unpaid parental leave: Update to reflect day-one entitlement. Remove any reference to a one-year qualifying service requirement
  • Bereavement leave: Add a clause covering the new statutory bereavement leave entitlement, including early pregnancy loss
  • Review all family leave sections: Confirm that no family leave clause implies a qualifying period where one no longer applies

Zero-hours and guaranteed hours

  • Review zero-hours contract terms: ERA 2025 introduces a right to guaranteed hours for workers who regularly work more than their contracted hours. If you use zero-hours or low-hours contracts, review them against the new guaranteed hours provisions
  • Exclusivity clauses: Confirm that zero-hours contracts do not contain exclusivity clauses, which remain prohibited

Notice and dismissal provisions

  • Unfair dismissal qualifying period: Prepare handbook or contract updates for the planned change from 2 years to 6 months, but do not present it as operative before commencement
  • Fire and rehire: Review any clause that reserves the right to dismiss and re-engage on different terms and prepare for the new restrictions, which are not yet in force
  • Compensation references: Keep current cap references accurate and prepare to update them if and when section 25 is commenced

Tribunal time limits

  • Prepare references to claim deadlines: Section 152 will extend relevant limits from 3 to 6 months once commenced; the current limit for most claims remains 3 months less 1 day
  • Document retention: Consider extending retention for dismissal and disciplinary records ahead of the planned longer claim window

Template wording suggestions

The following wording can be adapted for your contracts and written statements. These are starting points and should be reviewed by a legal adviser before use.

Trade union membership notification

"You have the right to join a trade union of your choice. Your employer will not subject you to any detriment for joining, not joining, or participating in trade union activities. Further information about trade unions is available from the Trades Union Congress (TUC) at tuc.org.uk."

SSP entitlement

"If you are unable to work due to illness or injury, you are entitled to Statutory Sick Pay (SSP) from the first qualifying day of your absence. There is no minimum earnings threshold for SSP eligibility. SSP is paid at the prevailing statutory rate for up to 28 weeks."

Paternity leave

"Eligible employees are entitled to up to two weeks of paternity leave from day one of employment. There is no minimum service requirement. Statutory Paternity Pay is subject to the lower earnings limit."

Bereavement leave

"You are entitled to statutory bereavement leave from day one of employment. This includes bereavement following the loss of a close relative or early pregnancy loss. Details of your entitlement and how to request bereavement leave are set out in the employee handbook."

Template wording is not legal advice. The wording above is indicative only. Have your employment contracts reviewed by a qualified employment lawyer or HR professional before issuing them to employees.

Implementation steps

  1. 1

    1. Audit current templates

    Review your existing employment contract template, written statement template, and employee handbook against the checklist above. Identify every clause that needs adding, amending, or removing.

  2. 2

    2. Draft updated wording

    Prepare revised clauses for each item on the checklist. Use the template wording suggestions as a starting point, adapting them to your organisation's style and policies.

  3. 3

    3. Obtain legal review

    Have the updated templates reviewed by an employment lawyer or qualified HR adviser before issuing them. This is especially important for the trade union notification, zero-hours provisions, and dismissal clauses.

  4. 4

    4. Update HR and payroll systems

    Ensure your HR system generates written statements that include the new mandatory terms. Update payroll to reflect day-one SSP eligibility without the lower earnings limit.

  5. 5

    5. Issue updated terms to existing employees

    Provide updated written statements to existing employees. You must do this when terms are next amended, but it is good practice to issue updates proactively. Retain evidence that updated terms were provided.

  6. 6

    6. Train managers and HR staff

    Brief anyone involved in onboarding, contract issuing, or policy queries on the changes. Ensure they understand the new trade union notification requirement and updated entitlements.

What to do next

Once your contracts and written statements are updated:

Official guidance