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

8.7 of 10 TrustRadius

TrustRadius TR logo

Latest on-demand webinar

Unfair dismissal changes – are you ready for 1 July?

Darren Newman, Employment Lawyer at Brightmine

Darren Newman
Employment Lawyer,
Employment Law Ltd.

On 1 January 2027, the Employment Rights Act 2025 will reduce the qualifying period for protection from unfair dismissal from two years to six months — which, in effect, means that employees hired from 1 July 2026 will benefit from the change. At the same time, the compensation cap for unfair dismissal will be removed, making mistakes potentially a lot more costly.

In this free 1 hour webinar, Darren, outlines the ERA unfair dismissal changes, what HR should do to prepare, and how a shorter qualifying period will affect probation management.

The new employment law landscape

The Employment Rights Act 2025 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 significant preparation required from HR teams.

young people talking with laptops

Key changes include:

  • Extended eligibility for statutory sick pay (SSP), available from first day of absence, with the lower earnings limit removed (introduced April 2026)
  • The creation of the Fair Work Agency to strengthen enforcement of core employment rights (established April 2026)
  • Stronger harassment laws, including the introduction of employer liability for third-party harassment (due October 2026)
  • Reducing the two-year qualifying period for unfair dismissal claims to six months and removing the statutory cap on compensation (due January 2027)
  • Restrictions on fire and rehire practices (due January 2027)
  • New rights for zero and low hours workers (due 2027)

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.

You may also be interested in

Commentary and Insights

Making sense of the Employment Rights Bill: A day in the life of an HR consultancy

Rochelle Murinas, managing director of HR consultancy DJH People and HR Limited, explores the role of HR consultancies …

Commentary and Insights

Employment Rights Act 2025 implementation timetable: What Royal Assent means for HR

What caused the delays, what happens next, what are the potential implications for HR of the delays, and …

Podcasts

Employment Rights Bill – the whats and whens of the trade union-related reforms

In this episode, we discuss the Bill's many trade union-related changes and provide a phase-by-phase guide to how …

Webinars

Employment Rights Bill – HR’s countdown to April 2026

HR professionals must ready themselves for the employment law changes taking place in April 2026. In this webinar …

Whitepapers

Probationary periods are changing—Is your organisation ready?

Discover how the Employment Rights Bill is reshaping probationary periods.

Commentary and Insights

Mind the confidence gap! How to make a success of probationary periods

The Employment Rights Bill's day-one protection against unfair dismissal will heighten scrutiny over probationary practices. Learn what our …

Sign up to receive expert HR insights from Brightmine

Join our community and stay updated with industry trends, expert insights, valuable resources, webinar invites… and much more.

Sign up now and receive regular updates straight to your inbox!

    LNRS Data Services Limited and its affiliates may contact you about relevant solutions, services, events and industry insights. You can opt-out via the unsubscribe link in the communications that you receive or by contacting us.