Employment Rights Act 2025

Employment Rights Act 2025

An introduction to the Employment Rights Act 2025

The Employment Rights Bill receiving Royal Assent and becoming the Employment Rights Act 2025 marks the most significant overhaul of UK employment law in over a decade. Employers now face a complex timeline of changes, which will define how businesses manage their workforce moving forwards.

Sweeping changes will begin rolling out from February 2026, throughout the remainder of the year, and into 2027, affecting every aspect of employment from dismissal procedures to day one rights. Whether you employ five or five hundred people, these reforms will impact your policies, contracts, costs, and risk exposure.

Taking a proactive approach, such as training managers and ensuring your policies and procedures are fit for purpose, can help you remain compliant, avoid costly issues, and save valuable time in the long term.

We are here to help you ensure you are complaint in all areas to minimise the impact of the changes once they come in.

Employment Rights Bill

The Employment Rights Act 2025 originated from the Employment Rights Bill, which was introduced to Parliament on 10th October 2024 and received Royal Assent on 18th December 2025. This legislation represents a significant step in modernising employment law across the UK and reflects the Government’s commitment to updating workplace rights for a contemporary economy.

Employment Rights Act changes

The Act introduces provisions that focus improving living standards, strengthening worker protections, and enhancing workplace relations. It marks the most substantial update to UK employment law in over a decade, with measures being introduced through a phased timeline of implementation throughout 2026 and into 2027.

Recorded webinar – Essential Employment Rights Act 2025: What every employer needs to know

Ready to watch at your convenience – a recorded webinar where we guide you through the key changes that will shape your employment practices over the next 18 months.

We break down the legislation into practical steps – covering:

• Unfair dismissal: Understand the reduction in qualifying period from two years to six months and the removal of compensation caps, plus what this means for your recruitment and probation processes
• Day one rights: Navigate new immediate entitlements to paternity leave, parental leave, and bereavement leave, with practical guidance on updating your policies
• Zero-hours contracts: Prepare for guaranteed hours provisions and shift cancellation payments, including cost implications and scheduling strategies
• Statutory sick pay: Implement changes to the waiting period and lower earnings limit while managing budget impact
• Flexible working: Ensure your documentation is robust to allow you to respond to requests while maintaining operational needs
• Fire and rehire: Avoid automatic unfair dismissal claims with compliant restructuring approaches
• Harassment prevention: Protect your business with effective harassment prevention policies and training
• Trade union access: Adapt to new workplace rights and changes to industrial action rules