Understanding the Employment Rights Act 2025

Employment Rights Act 2025: Complete Employer Guide

This learning path provides a comprehensive walkthrough of all the major reforms in the Employment Rights Act 2025. It is designed for employers, HR professionals, and managers who want to fully understand the changes and their implications.

Time needed: 45-60 minutes for the full journey.

Structure: This journey is organised by topic area. You can complete it in one session or return to specific sections as needed.

Part 1: Overview and Timeline

The Employment Rights Act 2025 is described as "the biggest upgrade to workers' rights in a generation." It received Royal Assent on 18 December 2025 and contains 28 significant employment reforms.

Key implementation dates

Part 2: Day-One Employment Rights (April 2026)

Several employment rights become available from the first day of employment. This is one of the most significant changes for employers.

Statutory Sick Pay changes

SSP is fundamentally reformed:

Family leave changes

Several family leave entitlements become day-one rights:

Part 3: Zero-Hours Contract Reform (2026)

While not an outright ban, zero-hours contracts are significantly reformed to end 'exploitative' practices.

Key changes

Part 4: Unfair Dismissal Changes

Major reforms to unfair dismissal law come in two phases.

October 2026: Fire and rehire

Fire and rehire becomes automatically unfair dismissal with only a narrow exception for genuine financial crises.

January 2027: Qualifying period

The qualifying period for ordinary unfair dismissal claims reduces from 2 years to 6 months. The compensation cap is also removed.

Part 5: Harassment Protections (October 2026)

Employer duties to prevent harassment are strengthened significantly.

Part 6: Trade Union Rights (February 2026)

Significant strengthening of trade union rights, including repeal of previous restrictions.

Implications for employers

• Easier for unions to gain recognition
• Must allow union access to workplace
• Must inform employees of right to join unions
• Strike action will be easier to organise
• Cannot rely on ballot threshold failures

Part 7: Fair Work Agency (April 2026)

A new unified enforcement body launches on 1 April 2026.

Part 8: Collective Redundancy (2026-2027)

Changes to collective redundancy consultation rules.

Part 9: Large Employer Requirements (2027)

New requirements for employers with 250+ employees.

Part 10: Employment Tribunal Changes (October 2026)

Time limits for bringing tribunal claims are extended.

Summary and Next Steps

The Employment Rights Act 2025 represents the most significant change to employment law in a generation. Key actions for employers:

1. By April 2026: SSP changes, day-one family leave, FWA readiness
2. By October 2026: Fire and rehire, harassment, tribunal time limits
3. By January 2027: Unfair dismissal procedures, action plans (if 250+)
4. Ongoing: Monitor secondary legislation for zero-hours and redundancy thresholds