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Employment Rights Act: What employers need to know

Keeping up with the Employment Rights Act is no mean feat. We’ve distilled the need-to-know and digested the details below.

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How will the Employment Rights Act
impact employers?

The Employment Rights Act 2025 is set to reshape how organisations hire, manage, and support their people. Through strengthened employee rights, it creates practical challenges for HR and business leaders:

  • Are policies and processes ready to adapt to the changes?
  • Do managers understand how the changes will impact them day-to-day?
  • Are systems in place to meet stricter enforcement standards?

This is a wide-reaching reform affecting dismissals, sick pay, flexible working, zero-hours contracts, trade unions, bereavement, equality, tips, outsourcing, and compliance. Organisations that act now will reduce future risk and avoid costly mistakes.

Why employers should act now

The Employment Rights Act is not a single reform, it’s a structural shift in employment law. Organisations that plan early will:

  1. Reduce risk and cost
  2. Ensure consistent policies and processes
  3. Prepare managers and HR teams for compliance
  4. Avoid penalties and reputational damage

Next steps: review policies, update contracts, educate managers, and check systems for zero-hours, flexible working, SSP, and leave entitlements.

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Here’s what’s changing…

We’ve also included known or expected implementation dates where possible. Page last updated and accurate as at 12 February 2026.

In force 18 December 2025 👇

In force 18 February 2026 👇

Trade Unions

The minimum service levels required in the fields of health, transport, education, fire and rescue and other important services cease to apply.

Industrial Action Ballots

The support threshold of 40% of those entitled to vote voting in favour of industrial action will be removed.

In force 06 April 2026 👇

Day-one rights to family leave

Paternity leave and parental leave available from day one. Pay will require qualifying service.

Trade Union Recognition

The rules on trade union recognition will be simplified in order to make it easier for trade unions to get recognition.

Statutory Sick Pay (SSP) Reform

Statutory Sick Pay will be reformed, meaning:

  1. It starts from day one of absence
  2. The earnings threshold is removed
  3. A tapered rate for low earners will be introduced

This will increase early-stage absence costs for organisations that currently rely on the minimum statutory threshold and three-day waiting period.

Sexual harassment and protected disclosures

The definition of a protected disclosure will include a disclosure that sexual harassment has occurred, is occurring or is likely to occur.

Collective redundancy consultation

Compensation for failure to collectively consult will be increased from 90 days to 180 days’ gross pay.

Bereaved Partners' Paternity Leave

Bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life. This is a non-Make Work Pay measure, which means it’s not been introduced by the Employment Rights Act, but a separate piece of legislation.

In force 07 April 2026 👇

Fair Work Agency

Established to deal with enforcement functions previously carried out by HMRC and other government agencies. It will be given a number of powers including compelling individuals to attend meetings, entering premises to inspect documents and bringing claims on behalf of employees.

Expected August 2026 👇

Statutory Trade Union Recognition electronic balloting

Ballots for statutory recognition and derecognition of trade unions may be carried out using electronic balloting as opposed to postal or workplace balloting.

Expected October 2026 👇

Duty to prevent harassment

Employers will need to take ‘all reasonable steps’ to prevent harassment (including sexual harassment) in the workplace and by third-parties.

Tips and gratuities

Employers will need to consult with a trade union or workers’ representatives (or with workers directly) before introducing policies on how tips and gratuities should be allocated (and reviewed at least every three years).

Time limits for ET claims

The time limit to bring claims in the employment tribunal will increase from three months to six months.

Expanded Trade Union rights

New right to a statement of trade union rights and a trade union right of access. Trade union officials and learning representatives are also set to gain rights to facilities and time off.

Outsourcing and parity of treatment between public sector and private sector workers

Where public services are outsourced to contractors, the contractor’s direct hires cannot be treated less favourably than the public sector workers.

In force 01 January 2027 👇

Unfair dismissal rights after six months

Unfair dismissal rights will start after six months’ service. The original proposal was for this to be a day one right, but the government announced a change in approach on 27 November 2025. The cap on compensatory awards will also be removed.

Expected 2027 👇

Zero-hours and irregular hours contracts

New duty to offer guaranteed/minimum hours contracts to zero hours workers, those on minimum hours contracts and agency workers based on average hours worked in previous reference period (likely to be 12 weeks). New right to compensation where shifts are cancelled or postponed at short notice or where the employee refuses a shift because the employer has not provided reasonable notice.

Dismissals during pregnancy or family related leave

Stronger protection against dismissal for women who are pregnant and for those who are taking or returning from a period of statutory family leave.

Dismissal and re-engagement

Dismissal and re-engagement limited to circumstances in which it’s essential to avoid insolvency (otherwise dismissal automatically unfair). However, the ban will only cover ‘specific restricted variations’ to contracts (e.g. pay, pension, hours of work, holiday entitlement).

Bereavement leave

Extended to cover a wider class of family members with whom the leave may be associated.

Flexible working requests

You can only refuse a flexible working request on one or more of the statutory grounds if it is reasonable to do so.

Working time records

Employers will be required to keep records of their employees’ entitlements to holiday and holiday pay.

Ban on non-disclosure agreements covering harassment and discrimination at work

Any confidentiality clauses in agreements between an employer and a worker (e.g. a settlement agreement) which prevents a worker from making allegations about harassment or discrimination will be void.

Ongoing consultations…

Make Work Pay: strengthening the law on tipping

Timeline – 05 February 2026 – 01 April 2026

The government is looking to strengthen laws around tipping. Specifically, they are seeking views on the new requirements for employers to consult with workers when developing and reviewing tipping policies as well as existing law, code of practice and guidance.

View the consultation here.

Make Work Pay: recognition code of practice and e-balloting unfair practices

Timeline – 04 February 2026 – 01 April 2026

The government is seeking views on the proposed changes to the trade union recognition and derecognition processes. As part of this, the government will need to update the code of practice on access and unfair practices.

View the consultation here.

Make Work Pay: fire and rehire – changes to expenses, benefits, and shift patterns

Timeline – 04 February 2026 – 01 April 2026

The Employment Rights Act 2025 will introduce a new protection for employees by making a dismissal automatically unfair where this is for the purposes of making changes to the core terms of an employee’s contract. The government is consulting on 2 types of restricted variations in relation to fire and rehire. These are employment expenses and benefits, and shift patterns.

View the consultation here.

Make Work Pay: improving access to flexible working

Timeline – 05 February 2026 – 30 April 2026

The Employment Rights Act 2025 is introducing a new process for employers to follow where they are considering rejecting a flexible working request. The government is consulting on:

  • a proposed new light touch process for employers consulting with employees where a request cannot be immediately agreed
  • what training, resources and support can help businesses navigate flexible working requests
  • other ways to improve access to flexible working

View the consultation here.

Make Work Pay: modernising the Agency Work Regulatory Framework

Timeline – 05 February 2026 – 01 April 2026

As the Employment Rights Act 2025 will bring umbrella companies into the legal framework which governs agencies. Accordingly, the government is now seeking views on:

  • how the regulatory framework should be adapted to account for the activities of umbrella companies
  • what broader changes should be considered in order to modernise the rules

View the consultation here.

‘Reasonable steps’ to prevent workplace sexual harassment

Timeline – 2026-2027

A consultation on what will amount to ‘reasonable steps’ to prevent workplace sexual harassment is imminent and is likely to be announced.

View the consultation here.

Employment Rights Act 2025 Tracker

The Employment Rights Act 2025 is set to increase the burden on already stretched HR teams – our research anticipates a 230% increase in probation-related tasks alone!

Our handy ERA Summary and Tracker is a great way to stay on top of the Act, implementation dates, and what you’ll need to consider for your contracts, policies and processes. It’ll help you prepare for what’s already confirmed and what’s still evolving. When there are further developments we’ll update the tracker and send you the latest version, without you lifting a finger! Bookmark it, pin it and download it today.

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