Employment Rights Act 2025: what changes for employers and when

Where the Act stands in September 2026

The Employment Rights Act 2025 received royal assent on 18 December 2025. A few of its provisions took effect on that day or two months later. The rest need commencement regulations, and many also depend on further regulations and codes of practice that the government is still consulting on.

By 1 September 2026 five sets of commencement regulations had been made. The most important for employers are the regulations that brought in the April 2026 changes, the regulations made on 26 May 2026 that fix 1 January 2027 for the unfair dismissal changes, and the regulations made on 1 September 2026 that bring in longer tribunal time limits on 1 October 2026. For the other changes, dates come from the government's implementation timeline, last updated on 25 August 2026. The government says all future dates remain subject to parliamentary processes and may change, so check the position before relying on a date that has not yet been fixed by regulations.

Date	What changes for employers	Where the date comes from
18 December 2025	Royal assent; minimum service levels legislation for strikes repealed	The Act
18 February 2026	Most of the Trade Union Act 2016 repealed; stronger protection against dismissal for taking industrial action	The Act and commencement regulations
6 April 2026	Statutory sick pay from day one; day-one paternity leave and unpaid parental leave; holiday records; protective award up to 180 days; sexual harassment disclosures protected	Commencement regulations
7 April 2026	Fair Work Agency established	Commencement regulations
1 October 2026	Tribunal time limits extended from three to six months	Commencement regulations
30 October 2026	All reasonable steps to prevent sexual harassment; liability for third-party harassment; duty to tell workers of their right to join a trade union	Government timeline
1 January 2027	Six-month qualifying period for unfair dismissal; compensatory award cap removed	Commencement regulations
January 2027	Fire and rehire protections	Government timeline
2027, dates to be confirmed	Guaranteed hours, flexible working, bereavement leave, pregnancy dismissal protections, collective redundancy threshold, non-disclosure agreements	Government timeline

Changes already in force

Sick pay, family leave and holiday records

Since 6 April 2026 statutory sick pay has been payable from the first day of sickness instead of the fourth, and the lower earnings limit has been removed, so employees on low pay also qualify. For 2026/27 it is £123.25 a week or 80% of the employee's average weekly earnings, whichever is lower. On the same date paternity leave and unpaid parental leave became day-one rights, and the rule that stopped paternity leave being taken after shared parental leave was removed. Separate legislation introduced bereaved partner's paternity leave, allowing eligible fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child's life.

Employers must now keep records that show they have complied with the rules on annual leave and holiday pay, and keep those records for six years. Failing to comply is an offence under the Working Time Regulations 1998.

Collective redundancy and whistleblowing

For dismissals taking effect on or after 6 April 2026, the maximum protective award for failing to consult collectively about redundancies doubled from 90 days' pay to 180 days' pay for each affected employee. A disclosure that sexual harassment has occurred, is occurring or is likely to occur is now a qualifying disclosure under whistleblowing law, so a worker who makes one is protected from detriment and an employee from dismissal.

Equality action plans and trade union recognition

Since 6 April 2026 employers have been able to publish action plans on gender equality and supporting employees through the menopause on a voluntary basis. The government's timeline says these become mandatory in 2027, and the Act limits the requirement to employers with 250 or more employees. The statutory process for trade union recognition was simplified on the same date, removing the need to show likely majority support when applying and the requirement that at least 40% of the bargaining unit support recognition in a ballot.

Enforcement

The Fair Work Agency was established on 7 April 2026. It brings together existing state enforcement bodies and takes on enforcement of other rights, including holiday pay and statutory sick pay, with powers that include issuing notices of underpayment and penalties.

Trade unions and industrial action

The Strikes (Minimum Service Levels) Act 2023 was repealed on royal assent. On 18 February 2026 most of the Trade Union Act 2016 was repealed, industrial action and ballot notices were simplified, and protection against dismissal for taking industrial action was strengthened. The levy paid to the Certification Officer was removed on 1 April 2026, and since 25 August 2026 statutory trade union ballots can be held electronically or in the workplace.

October 2026: time limits, harassment and trade union rights

From 1 October 2026 the time limit for bringing most employment tribunal claims increases from three months to six months. The commencement regulations made on 1 September 2026 apply the longer limit where the relevant date is on or after 1 October 2026. For an unfair dismissal claim the relevant date is the effective date of termination, and for most other claims it is the date of the act or failure complained of, or the last in a series. Claims where the relevant date is before 1 October 2026 keep the three-month limit. For breach of contract claims in Scotland the change takes effect on 9 November 2026.

The government's timeline says that on 30 October 2026 the duty to take reasonable steps to prevent sexual harassment of employees becomes a duty to take all reasonable steps. Employers will also be liable for harassment of their employees by third parties, such as customers and clients, where it happens in the course of employment and the employer failed to take all reasonable steps to prevent it. The Act lets the government set out in regulations specific steps employers must take, in addition to the general duty.

The same date is given for a group of trade union measures: a duty on employers to inform workers of their right to join a trade union, a strengthened right of access to workplaces for trade unions, new rights and protections for trade union representatives, reforms to the recognition process, and extended protection against detriment for taking industrial action. The timeline also lists the reinstatement of the two-tier code for outsourced public sector workers and regulations for an adult social care negotiating body in England for October 2026.

January 2027: unfair dismissal and fire and rehire

The unfair dismissal changes are fixed by regulations. From 1 January 2027 the qualifying period for ordinary unfair dismissal falls from two years to six months, and section 124 of the Employment Rights Act 1996, which caps the compensatory award, is repealed. The changes apply where the effective date of termination is on or after 1 January 2027, including where notice was given before that date, and employees who already have six months' service on 1 January 2027 are protected straight away. The qualifying period for requesting written reasons for dismissal also falls to six months, and dismissals connected with spent convictions will need no qualifying period. Our guide on how to dismiss an employee fairly covers the practical effect.

The government's timeline puts fire and rehire protections in January 2027, and its factsheet gives an expected commencement date of 1 January 2027. Dismissing an employee because they would not agree to a restricted variation will be automatically unfair. Restricted variations include reducing pay, changing the number of hours, reducing leave, changing pension terms, specified changes to shifts, and adding a term that lets the employer make those changes without agreement. For most private sector employers, the exception is where the employer shows that the reason for the change was to eliminate, prevent, significantly reduce or significantly mitigate the effect of financial difficulties affecting, or likely soon to affect, its ability to carry on the business as a going concern, and that it could not reasonably have avoided the change. Different tests apply to public sector employers and local authorities. Dismissing employees to replace them with non-employees doing substantially the same work will also be automatically unfair, unless the need for that work has reduced or a similar financial difficulties exception applies. For other contract changes, a tribunal deciding whether a dismissal was fair will have to consider the consultation carried out and anything offered to the employee in return.

Changes due at the end of 2026 and in 2027

The timeline lists new regulations for seafarers in December 2026 and stronger tipping law by the end of 2026, including a requirement to consult workers before creating or reviewing a tipping policy. For 2027 it lists the following measures without specific dates:

• a right to guaranteed hours for zero-hours and low-hours workers, with rights to reasonable notice of shifts and payment for shifts that are cancelled, moved or cut short, with timings to be updated after consultation;
• changes to flexible working, so that an employer can refuse a request only on a listed ground and only where refusing is reasonable, with an explanation;
• a new right to bereavement leave, including for pregnancy loss;
• enhanced protection against dismissal for pregnant women and new mothers;
• a collective redundancy consultation threshold based on numbers across the whole business;
• regulations on non-disclosure agreements, so that clauses stopping workers speaking about harassment or discrimination are void, subject to exceptions;
• mandatory equality action plans; and
• regulation of umbrella companies, extended blacklisting protections, a new industrial relations framework and electronic balloting for trade union recognition and derecognition.

Most of these depend on further regulations and consultation, so the detail, and in several cases the date, are still to be settled. The government's factsheet on non-disclosure agreements says that change will apply only to agreements made after it comes into force.

What employers should do now

Start with the changes already in force. Check that payroll pays statutory sick pay from the first day of sickness and that contracts, handbooks and absence policies no longer refer to waiting days or a minimum earnings level. Make sure your holiday records show both the leave taken and how holiday pay was calculated, and that they will be kept for six years. Update family leave policies for day-one paternity leave and unpaid parental leave.

Before 1 October 2026, review how long you keep records of disciplinary action, grievances and dismissals, because potential claims will stay open for longer. Before 30 October 2026, assess the risk of sexual harassment in your workplace, including harassment by customers, clients and other third parties, update your policy and reporting routes, train managers and keep a record of the steps you have taken. Be ready to give workers a written statement of their right to join a trade union.

Before 1 January 2027, look at probation. Set probation periods that end well before six months, hold reviews on time and keep a record of concerns and the support given. Check that managers follow your disciplinary and capability procedures and the Acas Code, because more employees will be able to claim and awards for lost earnings will no longer be capped. If you are planning changes to pay, hours, shift patterns or other terms, take advice early. The existing Code of Practice on Dismissal and Re-engagement already applies, and a tribunal can increase compensation by up to 25% where an employer has unreasonably failed to follow it.

For 2027, review your use of zero-hours and low-hours contracts, your flexible working procedure and the confidentiality clauses in your settlement agreement templates, and, if you have 250 or more employees, how you will prepare equality action plans. Follow the consultations, because much of the detail will be in regulations.

Points for HR consultancies and payroll bureaus

The changes that affect payroll most directly are statutory sick pay from the first day with no earnings threshold, the holiday pay records now required, the April 2026 statutory payment rates, including statutory maternity and paternity pay at £194.32 a week, and the correct treatment of post-employment notice pay and Class 1A National Insurance on termination payments. For HR advisers, the priorities are updating contract and handbook templates, harassment prevention before 30 October 2026, probation practice before 1 January 2027 and the longer tribunal time limits.

HR consultancies and payroll bureaus can refer clients to us for contract and handbook updates, settlement agreements, dismissals and redundancies. We agree the scope and cost of the work with the client in writing before we start. For an overview of the rules that apply to every employer, see our guide to employment law essentials.

Frequently asked questions

When did the Employment Rights Act 2025 become law?

The Employment Rights Act 2025 received royal assent on 18 December 2025. A small number of provisions came into force on that day or two months later, on 18 February 2026. Most of the Act is being brought into force by commencement regulations in stages through 2026 and 2027, and many of the changes also depend on further regulations and codes of practice.

When does the unfair dismissal qualifying period change to six months?

The change takes effect on 1 January 2027. It applies where the effective date of termination is on or after that date, even if notice was given earlier, and employees who already have six months' service on 1 January 2027 are protected straight away. The cap on the compensatory award for unfair dismissal is removed from the same date. Until then, most employees need two years' service to bring an ordinary unfair dismissal claim.

Is statutory sick pay now paid from the first day of sickness?

Yes. Since 6 April 2026 statutory sick pay has been payable from the first day of sickness rather than the fourth, and the lower earnings limit has been removed. The rate for 2026/27 is £123.25 a week or 80% of the employee's average weekly earnings, whichever is lower. Employers cannot pay less than statutory sick pay but can pay more under a company sick pay scheme.

When do employment tribunal time limits increase to six months?

On 1 October 2026. The longer limit applies where the relevant date, such as the effective date of termination in an unfair dismissal claim or the date of the act complained of in most other claims, is on or after 1 October 2026. Claims where that date is earlier keep the three-month limit. For breach of contract claims in Scotland, the change takes effect on 9 November 2026.

What do employers need to do before 30 October 2026?

The government's timeline says that from 30 October 2026 employers must take all reasonable steps to prevent sexual harassment and will be liable for harassment of their employees by third parties, such as customers and clients, unless they took all reasonable steps to prevent it. Before then, assess the risks, update your policy and reporting routes, train managers and record the steps taken. The same date is given for a duty to tell workers of their right to join a trade union.

Will unfair dismissal become a day-one right?

No. The Employment Rights Act 2025 sets a qualifying period of six months for ordinary unfair dismissal, which applies where the effective date of termination is on or after 1 January 2027. Protection from the first day of employment had been expected, but the government changed this to a six-month qualifying period. Protection against automatically unfair dismissal and discrimination continues to apply from the first day.

When will the rules on zero-hours contracts change?

The government's timeline lists the right to guaranteed hours, and the rights to reasonable notice of shifts and payment for cancelled or shortened shifts, as measures for 2027, with timings to be updated after consultation. The detail will be set by regulations, so the exact date and scope were not settled as at September 2026. The Workers (Predictable Terms and Conditions) Act 2023 was repealed on 6 January 2026.

Sources & further reading

• GOV.UK — Plan to Make Work Pay and Employment Rights Act: timeline update
• legislation.gov.uk — Employment Rights Act 2025
• legislation.gov.uk — The Employment Rights Act 2025 (Commencement No. 2 and Transitional and Saving Provisions) (Amendment) Regulations 2026
• legislation.gov.uk — The Employment Rights Act 2025 (Commencement No. 4 and Transitional and Saving Provisions) Regulations 2026
• legislation.gov.uk — The Employment Rights Act 2025 (Commencement No. 5 and Transitional Provisions) (Amendment) Regulations 2026
• Acas — Employment Rights Act 2025
• GOV.UK — Employment Rights Act 2025: factsheets

This article is general information, not legal advice. The law changes and depends on your circumstances — always take advice on your specific situation before acting. Last reviewed 17 September 2026. Buzz Solicitors is a trading name of AD Solicitors Limited, a recognised body regulated by the SRA (no. 8011228).