Employment Rights Act 2025

The Employment Rights Act 2025 is the biggest shake-up of workplace law in a generation, significantly expanding employee rights and increasing employer obligations. Some changes are already in force. More to follow later this year. The biggest reforms – including a dramatic cut to the unfair dismissal qualifying period and the removal of the compensation cap – arrive in January 2027.

The stakes are rising. Penalties for getting it wrong are increasing. A new enforcement agency is watching. And the time to prepare is running out.

By taking a proactive approach, employers can minimise their risk, lower potential costs, and ensure compliance with increased standards.

We will make sure you are ready. This page sets out the key implementation dates, what each stage means in practice, the steps employers should be taking now, and the resources available to help you prepare in a measured, commercially focused way.

---

Contact our employment law solicitors today

Our team is here to help support your business through this period of unprecedented employment law transformation and to help you prepare as much as possible in advance of the changes.

If you have any questions or concerns about the updates provided above, please contact a member of our Employment Law team. You can use our online enquiry form or call 0330 191 5713.

---

At a glance – key dates, practical implications and next steps for employers

April 2026

April 2026 marked the first major phase of reform for employers, including:

• Statutory Sick Pay reforms, including removal of the three-day waiting period and lower earnings limit – Read more
• Protective award for collective redundancies doubled to a maximum of 180 days’ pay
  • The penalty for getting collective consultation wrong has doubled from 90 days’ pay to 180 days’ pay per affected employee, for relevant dismissals from 6 April 2026. The stakes are higher than ever – failure to comply with collective consultation rules during large-scale redundancies (more than 20 employees in a rolling 90 day period) could prove a costly mistake!
• Introduction of ‘Day 1’ rights to paternity and unpaid parental leave for eligible employees – Read more
• Whistleblowing-strengthening protections for workers who “blow the whistle” on sexual harassment
  • Workers who disclose sexual harassment are now entitled to whistleblower protection. To qualify, the worker must reasonably believe the disclosure is in the public interest. This is arguably more of a clarification than a change. For further information on the new harassment measures extending protections for employees, please see our Article here.
• Establishment of the Fair Work Agency – Read more
• Simplified trade union recognition and digital or workplace balloting reforms
• Voluntary phase for equality action plans and menopause action plans.

What should employers be doing?

• Update your policies and procedures, and communicate these updates to your workforce
• Consider whether your current documents, handbook and contracts are fit for purpose ahead of wider 2026 and 2027 reforms
• Train your HR team, payroll and managers
• Model the financial impact of Statutory Sick Pay changes and higher redundancy exposure
• Audit collective redundancy processes and consultation planning.

October 2026

From October 2026, employers can expect a further package of reforms, including:

• A duty on employers to take all reasonable steps to prevent sexual harassment, including by third parties – Read more
• Stronger tipping laws
  Expanded trade union rights, including rights of access, duties to inform workers of their right to join a union, and rights and protections for trade union representatives
• Extension of employment tribunal time limits, expected no later than October 2026.

What should employers be doing?

• Review anti-harassment policies, reporting routes, training and third-party risk controls
• Update workplace notices, union information processes and representative engagement arrangements where relevant
• Refresh investigation and grievance processes to reflect longer tribunal time limits and increased litigation risk
• Provide practical manager training so that legal duties are reflected in day-to-day behaviours and decision-making.

2027

Further major reforms are expected in 2027, including some of the changes likely to have the greatest operational and financial impact on employers:

• Ban on fire-and-rehire, likely from January 2027
• Unfair dismissal qualifying period reduced to six months, likely from January 2027
• Removal of the cap on the compensatory award for unfair dismissal, likely from January 2027
• Mandatory gender pay gap and menopause action plans for larger employers
• Rights for pregnant workers
• Flexible working reforms
• Bereavement leave
• Protections against zero-hour contract abuse
• Umbrella company regulation.

What should employers be doing?

• Start reviewing probation periods, performance management processes and dismissal decision-making now
• Assess whether contracts, handbooks and leadership practices rely on approaches that may become high risk under the new reforms
• Plan for increased litigation exposure
• Prepare for wider workforce strategy changes around flexible working, pregnancy protections, zero-hours arrangements and pay gap reporting
• Consider a phased compliance project rather than waiting for the final implementation date.

How Ashtons Legal can help

We recognise that these reforms call for a proactive response. Our team of experts is here to help you understand the specific implications for your business and transform potential challenges into opportunities to strengthen employee relations and build a more resilient workforce.

We can help you navigate the changes and put the right measures in place, including:

• Reviewing and updating contracts, policies and handbooks
• Identifying risks and priority actions across your organisation
• Supporting implementation of required changes
• Training managers on the practical implications
• Providing ongoing advice as the new framework takes effect through our retainer and HR support packages.

This information is provided for general guidance only and does not constitute legal advice. We recommend seeking specific professional advice before taking any action based on any of the information provided. Please contact us for advice tailored to your circumstances.

Article updates

• The Fair Work Agency
• Statutory Sick Pay changes from April 2026
• Day one family rights from April 2026
• Employment Rights Act 2025: get ready for the April 2026 changes
• Government Announces Updated Timeline for Employment Rights Act 2025
• Employment Rights Act 2025 – Unfair Dismissal Update
• The Employment Rights Bill is passed and receives Royal Assent
• From Day One to Month Six: Labour weakens dismissal rights for employees
• The Parliamentary ping-pong continues on the Employment Rights Bill
• Employment Rights Bill: Proposed Amendments
• Update to Employment Rights Bill
• Employment Rights Bill – Amendments Tabled
• The new Employment Rights Bill is published