Employment Rights Act 2025

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.

What has changed

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

Key implementation dates

• April 2026: Day-one SSP entitlement and removal of the lower earnings limit, day-one paternity and parental leave rights, Fair Work Agency established, collective redundancy protective award doubled
• October 2026: Fire and rehire restrictions, harassment prevention duty (“all reasonable steps”), third-party harassment liability
• 2027: Unfair dismissal qualifying period reduced to six months (retrospective from 1 January 2027), wider bereavement leave entitlement, flexible working reasonableness requirement, enhanced dismissal protections for pregnant employees

Why it matters to HR

The Act has phased implementation dates through 2026 and 2027, meaning HR teams need to start preparing now to meet each change. HR teams should audit contracts, policies and onboarding processes now, and prepare for expanded SSP eligibility, updated harassment prevention duties, reforms to trade union recognition and new obligations affecting zero and low hours workers.