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Employment Rights Act 2025 Hub

Last updated : 18 December 2025 

The Employment Rights Bill has now received Royal Assent and become the Employment Rights Act 2025, marking one of the most significant reforms to UK employment law in decades.

Following months of parliamentary debate between the House of Commons and House of Lords, the legislation has now been formally approved.

The Act applies to England, Scotland and Wales (but not Northern Ireland) and will introduce wide-ranging changes that are expected to increase compliance obligations and costs for many employers.
 
While the Act is now law, most of the new measures are expected to come into force during 2026 and 2027, giving employers some time to prepare.
 
 
What are the key changes?

The Act introduces a wide range of reforms designed to give workers stronger protections and more day-one rights. Key proposals include: 

  • Fairer contracts for zero-hours and shift workers: stronger rights to security and predictability, including guaranteed hours that reflect actual working patterns, advance notice of shifts, and compensation if work is cancelled at short notice. 
  • Fire and rehire: tighter limits and stronger consultation rules 
  • Enforcement: new Fair Work Agency to enforce employment rights 
  • Unfair dismissal rights: current two-year qualifying period will be reduced, to six months (expected to be phased in from January 2027).   
  • Cap removal: cap on compensation for unfair dismissal claims will be removed. 
  • Family and bereavement leave: day-one rights to parental and paternity leave, plus extended bereavement leave rights beyond just parents. 
  • Statutory Sick Pay (SSP): payable from the first day of sickness, with no lower earnings limit (expected to be introduced in April 2026). 
  • Pregnancy and harassment protections: stronger safeguards for employees, including protection from third-party harassment (e.g. customers or clients). 
  • Trade union rules: simplified access and collective bargaining rights. 
What this means for employers of all sizes 

These changes will mean reviewing contracts, policies, and day-to-day practices. While not all reforms will happen straight away, it’s important to start planning now so you’re ready when the new rules take effect. 

  • Employment contracts: make sure they reflect guaranteed hours, notice of shifts, and new 6 month probationary period. 
  • Sickness and absence policies: prepare for April 2026, when SSP will be payable from day one and more employees will qualify. 
  • Family leave policies: update to reflect day-one parental and paternity leave and prepare for the extension of bereavement leave beyond just parents. 
  • Anti-harassment measures: strengthen policies and provide training to ensure managers and employees know their responsibilities. 
  • Dismissal procedures: with the unfair dismissal qualifying period reduced from two years to six months (expected to be phased in by 2027), start training managers now to handle dismissals fairly and consistently. 
  • Recruitment: getting the right people in place from the outset will be even more important under the new rules. We provide a full recruitment service, acting as your in-house recruiter, to help you attract, assess, and hire people with the right skills and long-term fit for your business — minimising risk and avoiding bigger problems (and costs) later. 
  • Probationary periods: ensure these are clearly set out, well-managed, and documented so issues are picked up early. 
  • HR systems and payroll processes: check your systems can handle the changes, especially around SSP and leave entitlements. 
  • Employee communication: keep employees informed about the new rights so they understand what’s available, how to use it, and feel supported. 
What happens next? 

While the Act has now received Royal Assent, many of its practical effects will depend on further regulations and guidance. The government has indicated that a significant number of consultations will take place to inform the detailed implementation of the new framework, with engagement expected from both businesses and trade unions. Hopefully in due course the following should become clearer:

  • Most of the Act’s measures will require secondary legislation before coming into force
  • Which parts will take effect immediately 
  • Which have fixed future start dates 
  • Which will come into force later through commencement regulations  

👉 We’ll be keeping this page regularly updated. If you’d like to understand what the changes mean for your business and start preparing in a practical, manageable way, get in touch with us today at hello@hr-surgery.co.uk