HR & Compliance Centre

Employment Rights Act 2025

Breakdown of the upcoming Labour Government’s employment law changes and how HR & Compliance Centre helps you prepare for them

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How should HR be approaching the new trade union access rights?

Nick Chronias, DAC Beachcroft employment law partner and trade union relations specialist

Nick Chronias
Employment Law Partner
DAC Beachcroft

The Employment Rights Act 2025 is set to introduce successive waves of trade union reforms. What will the impact of these changes be and what practical preparations should HR be making for them?

In this free 60-minute webinar, DAC Beachcroft employment law partner and trade union relations specialist Nick Chronias will provide a brief overview of the April changes, which simplify the union recognition process, before focusing in on the October reforms

What has changed

The Employment Rights Act 2025 (The Act) received Royal Assent on 18 December 2025. Reforms will be implemented in stages across 2026 and 2027. It represents the most wide‑ranging changes to UK employment law in decades, with phased implementation through to 2027 and significant preparation required from HR teams.

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Key changes include:

The Act introduces numerous changes that will impact HR practices and employee rights. Key changes include:

  • Reducing the two-year qualifying period for unfair dismissal claims to six months and removing the statutory cap on compensation
  • Statutory Sick Pay (SSP) day one entitlement, with the lower earnings limit removed
  • A new duty for employers to take all reasonable steps to prevent sexual harassment
  • Restrictions on fire and rehire practices
  • The introduction of guaranteed hours for zero and low hours workers
  • The creation of the Fair Work Agency to strengthen labour market enforcement

Employment Rights Act: Frequently asked questions

Is statutory paternity pay a day-one right from April 2026?

No, while the Employment Rights Act 2025 removes the qualifying period for statutory paternity leave from 6 April 2026, the qualifying requirements for statutory paternity pay remain the same.

Employees will be entitled to statutory paternity pay only if they have 26 weeks’ service ending with the relevant week. They would be entitled to statutory paternity leave on an unpaid basis if they do not have the required service.

The relevant week is the 15th week before the expected week of birth, or the week they are notified of the match for adoption.

Can employees take paternity leave as well as shared parental leave?

Yes, eligible employees can take both paternity leave and shared parental leave. 

Before 6 April 2026, employees are required to take paternity leave first. They cannot take a period of paternity leave if they have already taken a period of shared parental leave in relation to the same child.

The Employment Rights Act 2025 removes this restriction for paternity leave where the expected week of childbirth is on or after 5 April 2026; the child is born on or after 6 April 2026; or the child is expected to be placed for adoption on or after 6 April 2026.

Can employers be held liable for harassment that takes place during a work-related social event?

Employers can be held vicariously liable for discriminatory acts by employees – even if the event is held off site and out of normal working hours. Under the Equality Act 2010, protection from harassment covers sexual harassment as well as unwanted conduct on the grounds of age, disability, gender reassignment, race, religion or belief, and sexual orientation.

Employers should ensure that their policy on harassment is up to date, and has been brought to the attention of all employees. The employer will have a defence to a claim of harassment if it can show that it took all reasonable steps to prevent the employee from performing the act. Ensuring that employees are aware of the policy on harassment is a key first step to establishing this defence.

Employers are not currently liable for harassment of employees by third parties, but this is due to change in October 2026. The Employment Rights Act 2025 provides for employers to be liable for third-party harassment of employees in the course of their employment, where the employer has failed to take all reasonable steps to prevent this.

Employers currently have a duty to take reasonable steps to prevent sexual harassment of their employees in the course of their employment. This includes prevention of harassment by third parties. This duty will be strengthened by the Employment Rights Act 2025, which will require employers to take all reasonable steps. Employers should ensure that they take steps to prevent any harassment of employees, for example when choosing a venue for a social event. 

Can an employee be dismissed for taking lawful industrial action?

If someone is dismissed for taking lawful industrial action, the dismissal will be automatically unfair.

For industrial action that began before 18 February 2026, automatic protection from unfair dismissal applies only to the first 12 weeks of industrial action, or if the employee strikes for more than 12 weeks where the employer has not taken reasonable procedural steps to resolve the dispute. Even where the employer has taken reasonable steps, employees taking official industrial action can claim unfair dismissal unless all employees taking part are dismissed and none are offered re-engagement, so the employer is more exposed to claims if it dismisses only some employees.

The 12-week protected period is removed by the Employment Rights Act 2025, so dismissal for taking lawful industrial action is automatically unfair regardless of the length of the strike.

Do you still have questions?

Sign up for a free trial of HR & Compliance Centre to browse our full list of Employment Rights Act FAQs

These answers were last updated on this page on 13 March 2026 but the Brightmine HR & Compliance Centre is updated daily. Get started today for access to up-to-date compliance answers that you need to make confident HR decisions.

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