After a long journey, the Employment Rights Bill finally received Royal Assent on 18th December 2025 and is now officially law as the Employment Rights Act 2025.
This is one of the most wide-ranging pieces of employment legislation in recent years. The Act introduces a significant package of reforms, which will be rolled out in three phases across 2026 and into 2027.
The good news? Not everything happens at once.
While many changes won’t take immediate effect, employers now have clarity on what’s coming and when with implementation expected between April 2026 and October 2027. The focus has shifted from “what might happen” to “how and when do we prepare?”
To support you, we’ll be producing a series of practical, bite-sized guides aligned to the implementation dates.
👉 If you’d like to receive these, please contact us
Key Changes to Watch
Unfair dismissal qualifying period
The qualifying period for ordinary unfair dismissal will reduce from two years to six months, rather than being removed entirely. This is expected to take effect from January 2027.
The Phased Plan
The Act is being implemented in stages under the Government’s roadmap (published July 2025).
From April 2026, employers can expect practical, day-to-day changes, including:
- Day-one rights to paternity leave and unpaid parental leave
- Reformed Statutory Sick Pay (no waiting days and no lower earnings limit)
- Expanded whistleblowing protections, including sexual harassment complaints
- Increased penalties for collective redundancy failures
From October 2026, further reforms will follow, including:
- Tighter controls on fire-and-rehire, Stronger rules on tips, Expanded trade union rights, A new duty to take “all reasonable steps” to prevent sexual harassment
Looking ahead to 2027
Further changes are expected during next year, covering Unfair dismissal reforms, Flexible working, Bereavement leave, Protections for pregnant workers, Restrictions on zero-hours arrangements
What should employers be doing now?
For unionised employers, the priority is understanding the imminent changes to industrial action rules and reassessing risk and response planning.
For non-unionised workplaces, preparation should focus on:
- Reviewing contracts of employment, variation clauses and probationary provisions
- Strengthening probationary processes ahead of the six-month unfair dismissal threshold
- Training managers on upcoming rights and obligations
- Planning policy updates for family leave, sickness absence and harassment
- Auditing payroll and benefits systems in light of SSP reform.
👉 If you’d like support with the first phase of the changes, we’re offering a fixed-fee package (£750) to help you prepare which includes template policies. Get in touch before Friday 27th February to find out more!