The Employment Rights Act 2025 is now officially law after receiving Royal Assent on 18th December 2025. It represents one of the most significant UK employment law reforms in recent years.
For employers, HR professionals and business leaders, the question is no longer if change is coming, but how prepared you are for April 2026 and beyond.
In this guide, we outline the key changes under the Employment Rights Act 2025, the implementation timeline, and what employers should be doing now to reduce risk and ensure compliance.
What Is the Employment Rights Act 2025?
The Employment Rights Act 2025 introduces a wide-ranging package of reforms that will reshape employer obligations across:
- Unfair dismissal law
- Fire and rehire practices
- Zero hours contracts
- Statutory Sick Pay
- Collective redundancy
- Sexual harassment prevention
- Whistleblowing protections
- Trade union rights
- Gender pay gap reporting
The changes will be rolled out in phases across April 2026, October 2026 and throughout 2027.
Employment Law Changes Taking Effect in April 2026
The first phase of reforms under the Employment Rights Act 2025 begins in April 2026. Key changes include:
- Day 1 rights to paternity and parental leave
- Statutory Sick Pay reform, including removal of the lower earnings limit and waiting period
- Collective redundancy protective award doubling from 90 to 180 days’ gross pay per employee
- Whistleblowing protections expressly including sexual harassment
- Simplification of trade union recognition processes
- Establishment of the Fair Work Agency
These changes will increase employer exposure to financial risk, particularly in redundancy and dismissal situations.
October 2026 Employment Law Updates
From October 2026, further reforms will affect employer compliance responsibilities:
- Stronger duty to prevent sexual harassment requiring all reasonable steps
- Reintroduction of employer liability for third party harassment
- Trade union access and representation changes
- Potential extension of employment tribunal time limits from 3 to 6 months
- Tightened tipping law compliance requirements
Employers will need to review risk assessments, harassment policies and internal reporting procedures ahead of these changes.
2027 Employment Law Reforms: Unfair Dismissal and Fire and Rehire
The most significant structural changes are anticipated in 2027, including:
- Reduction of the unfair dismissal qualifying period from 2 years to 6 months
- Removal of the unfair dismissal compensation cap
- Major restrictions on fire and rehire practices
- Zero hours contract reforms, including guaranteed hours offers
- Mandatory gender pay gap and menopause action plans
- Enhanced dismissal protections for pregnant women and new mothers
These reforms fundamentally shift employer risk, particularly around dismissal processes and workforce restructuring.
How the Employment Rights Act 2025 Impacts Employers
The impact of these employment law changes in 2026 and 2027 will be significant for:
- Recruitment and probation processes
- Contract drafting and template updates
- Dismissal and performance management procedures
- Redundancy planning
- Payroll budgeting due to SSP changes
- Harassment prevention and EDI practices
- Trade union strategy and employee engagement
Early preparation reduces the likelihood of tribunal claims and costly disputes once reforms take effect.
How Employers Can Prepare Now
With implementation staggered, employers should act early to protect their organisation.
Recommended steps include:
1. Audit Contracts and Policies
Review and update employment contracts, probation policies, dismissal procedures, flexible working policies and use of NDAs.
2. Train Managers
Ensure managers understand changes to unfair dismissal rights, harassment prevention duties and employee relations processes.
3. Review Dismissal and Redundancy Risk
Assess collective consultation thresholds, documentation standards and internal approval processes.
4. Strengthen Harassment Prevention Measures
Update risk assessments and ensure preventative steps can be evidenced.
5. Budget for Increased Employment Costs
Plan for increased redundancy protective awards and Statutory Sick Pay changes.
Preparation in 2025 and early 2026 will create stronger foundations before the new law fully takes effect.
Join Our Employment Rights Act 2025 Webinar for UK Employers
To help businesses prepare confidently, we are hosting a practical online webinar:
The Employment Rights Act 2025: Are You Ready?
📅 Wednesday 11th March 2026
🕑 2:00pm
💻 Online
In this 30 minute briefing, we will cover:
- The key employment law changes taking effect from April 2026
- What follows in October 2026 and 2027
- The biggest employer risk areas
- Practical steps you can implement immediately
This session is ideal for:
- Business owners
- HR professionals
- Directors
- People managers
The webinar will be recorded, and attendees can request a detailed handout summarising key takeaways.
Secure your place here:
https://www.plusonejobs.co.uk/employers-information/recruitment-webinars
Final Thoughts on the Employment Rights Act 2025
The Employment Rights Act 2025 represents one of the most comprehensive UK employment law reforms in recent years.
It does not require panic.
But it does require planning.
If you want clarity on what the 2026 and 2027 employment law changes mean for your business, and what you should prioritise now, join us on 11th March.
Preparation today prevents risk tomorrow.