A Comprehensive Guide to the Employment Rights Act 2025

The highly anticipated Employment Rights Bill has officially received Royal Assent on December 18th, 2025. It’s now known as the Employment Rights Act 2025, and it represents one of the most significant updates to UK employment law in recent years.

Whether you’re working in people management or studying towards a CIPD qualification, this blog will help you understand what's changing, what's coming next, and how to prepare for it.

Disclaimer: This article is intended to provide a high-level overview of the Employment Rights Act 2025 reforms, and it should be used as a starting point for further research and discussion, not as legal advice or a substitute for professional legal interpretation.

What’s the Employment Rights Act 2025?

The Employment Rights Act 2025 is a piece of legislation designed to strengthen worker protections, reshape employer responsibilities, and place a greater emphasis on fair work, security, and transparency in the UK.

This Act introduces additions and amendments to existing labour laws, such as the Employment Rights Act 1996, that HR professionals use every day. Staying informed on the upcoming changes, gives you the time and space to review existing practices, upskill, and support your organisations through turbulence.

What changes are coming with Employment Rights Act 2025?

Before we dive deeper into the changes coming with this legislation, it’s important to be aware that the reforms in the Employment Rights Act 2025 will not happen all at once. Instead, they’ll be gradually introduced over a two-year period, with most new provisions expected to come into force during the second half of 2026 and into 2027.

Don’t worry! We broke down the reforms in waves so you can foresee what’s coming.

Employment Rights Act 2025 (February 2026 Changes)

The first wave of changes is in effect in February 2026. These early changes focus heavily on supporting industrial action and trade union activity, which means HR teams involved in employee relations and workforce planning will be most affected. Here’s what’s happening:

1. Stronger Protection Against Dismissal During Industrial Action

Dismissing an employee for taking part in lawful industrial action will be classed as “automatically unfair”. Currently, there’s a time limit on this protection, which means dismissals linked to industrial action can fall outside unfair dismissal rules after a set period.

This limit is removed entirely. This raises the stakes when managing disputes, strikes, or collective action. Decisions taken during industrial action will need to be carefully documented and legally sound, as the scope for unfair dismissal claims will be much wider.

2. Changes to Trade Union Processes and Industrial Action Rules

There are also several updates to how trade unions organise and carry out industrial action. These changes are intended to simplify existing processes and even out the balance between employers and unions.

• Shorter notice for strikes: Unions will only need to give 10 days’ notice before industrial action, down from 14 days.
• Simpler union voting: A simple majority is enough for a vote to authorise industrial action.
• Picketing rules: Appointing a picket supervisor is no longer required.
• Longer mandates: Authorisations for industrial action will now last 12 months instead of 6 months.
• Simplified notices: Industrial action and ballot notifications will be easier to issue.
• Political fund updates: Rules around union political funds will also change.

Employment Rights Act 2025 (April 2026 Changes)

The second wave of reforms is in effect in April 2026, covering parental rights, whistleblowing, sick pay, and establishes The Fair Work Agency. Here’s the breakdown:

Paternity and Parental Leave (Day One Rights): Employees will have immediate entitlement to paternity leave and ordinary parental leave from their first day of employment (Previous service requirements no longer apply). Paternity leave can now be taken even after shared parental leave.

• Statutory Sick Pay (SSP) Reform: SSP will be paid from the first day of illness, replacing the previous three-day waiting period. The lower earnings threshold is removed, so all employees are eligible for SSP regardless of earnings.
• Collective Redundancy (Protective Award): The maximum award for failing to consult employees during collective redundancies will double from 90 days’ pay to 180 days’ pay.
• Whistleblowing Protections: Sexual harassment is now protected as qualifying disclosures.
• Trade Union Recognition and Digital Ballots: The process for union recognition will be simplified. Union members will be able to vote electronically, supporting faster and more efficient ballots.
• The Fair Work Agency will be established to bring together existing enforcement bodies and take on enforcement of employment rights, such as holiday pay and statutory sick pay.
  

Employment Rights Act 2025 (October 2026 Changes)

The final major wave of changes in 2026 happen in October and they focus on fair treatment and bring even more protections for victims of harassment. Here they are:

• Dismissal and Rehire Practices: Dismissing employees and rehiring them on worse terms will be treated as automatically unfair dismissal in most cases. Employers will be expected to fully explore reasonable alternatives and follow clearer consultation processes before changing contracts.
• Workplace Harassment: Liability will extend to harassment by third parties, such as customers or clients, and preventative steps must be in place. Employers will also carry the responsibility to take “all reasonable steps” to prevent sexual harassment (previously, it was only “reasonable steps”). Changes to non-disclosure agreements (NDAs) will limit their use where harassment or discrimination is involved.
• Tipping and Gratuities: Employers must consult with workers or their representatives before introducing a tipping policy. Tipping policies will need to be reviewed and updated at least every three years.
• Employment tribunal time limits: The deadline for bringing most tribunal claims will increase from three months to six months. This extends the period of legal risk for employers, making record keeping and decision documentation more important than ever.
• Expanded trade union rights: Employers will have a new duty to inform workers of their right to join a trade union. Trade unions will have greater access to workplaces, alongside improved facilities and reasonable accommodation for representatives. Union equality representatives will gain a right to paid time off to carry out their duties. Workers taking part in industrial action will be protected from detriment, not just unfair dismissal.
• Public sector outsourcing protections: New measures will aim to prevent a two-tier workforce when public services are outsourced, ensuring fairer terms and conditions.
• Adult Social Care Negotiating Body: A new body will be established to agree minimum pay and terms in the adult social care sector. While sector-specific, this will have major workforce planning implications for care providers.

Employment Rights Act 2025 (2027 Changes)

The remaining reforms are expected to land in 2027. More details will be confirmed through consultation and secondary legislation, but they will include:

• Unfair dismissal rights: Employees will gain the right to claim unfair dismissal after six months of employment, replacing the current two-year qualifying period.
• Stronger pregnancy and maternity protections: Brings additional safeguards to protect pregnant employees and those returning from maternity leave, particularly against dismissal.
• Statutory bereavement Leave: A new legal right to bereavement leave will be introduced. Whether this leave will be paid or unpaid has not yet been confirmed.
• Zero-hours contracts and guaranteed hours: Workers on zero-hours or low-hours contracts will have the right to request guaranteed working hours if they wish to do so.
  Compensation for cancelled or changed shifts: Workers will be entitled to pay if a shift is cancelled, shortened, or moved at short notice by the employer.
• Flexible working reforms: Employers will need to give clearer explanations when refusing a flexible working request. Refusals must state the business reason and explain why the decision is reasonable.
• Further sexual harassment reforms: The law will further clarify what counts as “reasonable steps” to prevent sexual harassment, building on the October 2026 changes.
• Mandatory gender pay gap and menopause action plans: Gender pay gap and menopause action plans will move from voluntary to mandatory.
• Collective redundancy changes: Employers will need to assess total redundancies across the whole organisation, not just individual sites. Also increases collective redundancy protection for workers on ships that operate in British ports but are registered outside Great Britain.
• Trade union protections and industrial relations: Stronger protections against discrimination and blacklisting for trade union members. A new industrial relations framework will aim to support more constructive employer and union relationships.
• Regulation of umbrella companies: Umbrella companies will fall within the scope of employment agency regulation. Employers using agency labour will need to review supply chains, contracts, and compliance checks.

What do these employment law updates mean for HR professionals?

The Employment Rights Act 2025 reflects a wider shift in the UK labour market towards providing more protections for employees and creating greater accountability for employers.
For HR professionals, refreshing your knowledge of employment law and employee relations will be a crucial part of effective people management in 2026 and beyond.

Develop your knowledge of employment law with a professional CIPD qualification.