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Unless you have been living under a rock, you will have heard about the huge changes that the government is making to the employment law landscape in the UK.  Not all planned changes made it through the parliamentary tussle, but on 18^th December 2025, the Employment Rights Bill received Royal Assent to become the Employment Rights Act 2025.

The 2025 Act ushers in one of the most extensive overhauls of workplace rights in years.  While only a few changes will come into force immediately, more will take effect in stages across 2026 and 2027, giving us time to prepare.  The timetables we have been given are not all set in stone and further regulations are needed to put the new laws into effect.  We may therefore see some changes slip back (or indeed fall away).

We have been living with the Employment Rights Act 1996 for many years now and some of you will be familiar with at least parts of it.  Many will know, for instance, that employees have a statutory right to bring a claim for unfair dismissal after they have worked for an employer for at least 2 years.  The 2025 Act will change this, reducing the qualifying period to 6 months.  The government will also remove the cap on the amount of compensation that can be awarded in a successful unfair dismissal claim (currently the lower of 52 weeks’ pay or £118,223).

The 2025 Act also makes statutory sick pay more accessible, enhances family-friendly rights, and strengthens collective employment protections (union-related rights).

The first raft of changes primarily relate to unions and collective action and include: the removal of minimum service levels during strikes, simplification of picketing rules, reduction of strike notice periods, and making a dismissal for taking part in industrial action automatically unfair.

Changes coming into force in April 2026
One of the big headliner changes you may have seen in the media is to the statutory sick pay (SSP) rules.  Currently, an employee is only entitled to SSP from the fourth day of sickness absence.  From April 2026, SSP will become payable from the first day of absence, removing the current 3-day waiting period.  The lower earnings limit (which is the minimum earnings threshold needed to qualify for SSP) will also be abolished, opening SSP up to many more people.

Also to come:

• Paternity leave and ordinary parental leave will become day-one rights, meaning new employees can take such leave without having to first serve a qualifying period of service.
• Sexual harassment will be treated as a qualifying disclosure for whistleblowing so that anyone reporting sexual harassment will be protected from detriment and dismissal.
• The maximum protective award for failure to consult on collective redundancies will double from 90 to 180 days’ pay.
• Simplifying union recognition and balloting.
• A new Fair Work Agency will be launched with a remit of co-ordinating and enforcing employment rights such as rights to holiday pay, SSP and labour standards.

Changes in October 2026
If you haven’t had enough yet, further changes are expected to come in October 2026 including making “fire and rehire” dismissals automatically unfair in most cases, making employers liable for any kind of harassment from third parties (e.g., customers or clients) unless they have taken all reasonable steps to prevent it, and extending the time limit for bringing most employment tribunal claims from 3 months to 6 months.  There will be new obligations on employers to consult with staff before putting in place or changing a tipping policy, and such policies will have to be reviewed every 3 years.  Employers will also become obligated to inform staff of their right to join a union and provide reasonable accommodation, facilities, and time off for union reps.  Changes to public sector outsourcing and the introduction of a new negotiating body for adult social care are also expected.  

2027 and beyond
The headliner change planned for 2027 is the reduction of the qualification period for unfair dismissal claims from 2 years to 6 months.  Coupled with the removal of the cap on compensation for unfair dismissal claims, this will result in greater risk for employers and stronger rights for employees.

New statutory rights to bereavement leave are also planned.  At present, there is a right to parental bereavement leave on the death of a child but no such leave for other forms of bereavement.  There is to be greater protection against dismissal in maternity situations, mandatory equality action plans, regulation of umbrella companies, and changes to flexible working rules.

One of the biggest anticipated changes will be to zero-hours contracts.  Workers on zero-hours contracts are to be given rights to guaranteed hours in certain circumstances.  They will also become entitled to compensation for cancelled or changed shifts.  These changes have been long awaited by those who dislike zero-hours contracts (many of whom would likely have wanted to see them banned outright).

What do you need to do?
Employers will need to review their existing policies and procedures and the terms of employment offered to staff and ensure they are brought up to date to comply with the new laws.  They will also want to make sure that managers and any internal HR teams are up-to-date and continue to monitor these changes as they come into effect over the new few years.

 

The GOV.UK website contains helpful guidance and timelines and employers can start there.  Employers will also be well advised to seek professional advice to ensure compliance as the changes roll out.

If you would like a discussion about your employment rights, or those of your staff you can contact Kim Cross on 01945 898090 or email This email address is being protected from spambots. You need JavaScript enabled to view it..