Employment Rights Act 2025: What Changes for Employers and When

What the Employment Rights Act 2025 is

The Employment Rights Act 2025 began as the Employment Rights Bill, introduced in the House of Commons on 10 October 2024, and received Royal Assent on 18 December 2025. It is chapter 36 of 2025.

Most of the Act does not take effect on its own. Ministers bring each part into force through commencement regulations, and six sets were made during 2026. The Department for Business and Trade publishes a timeline of planned dates, last updated on 22 October 2026. It states that future dates are subject to parliamentary processes.

ACAS publishes employer guidance on each change as it takes effect.

What is already in force

On 18 December 2025 the Strikes (Minimum Service Levels) Act 2023 was repealed. From 18 February 2026 most of the Trade Union Act 2016 was repealed. As a result, notice of industrial action fell from 14 to 10 days and ballot mandates were extended from 6 to 12 months.

From 6 April 2026, Statutory Sick Pay is payable from day one, day-one paternity leave and unpaid parental leave apply, Bereaved Partners' Paternity Leave of up to 52 weeks is available, and holiday pay records must be kept for at least 6 years. The Fair Work Agency was established on 7 April 2026.

From 30 October 2026 employers must take all reasonable steps to prevent sexual harassment of their staff, including harassment by third parties such as customers.

Employment Rights Act 2025: changes in force by November 2026

Date	Change
18 February 2026	Industrial action notice cut from 14 to 10 days; ballot mandates last 12 months
6 April 2026	Statutory Sick Pay from day one; day-one paternity and unpaid parental leave; protective award doubled to 180 days
7 April 2026	Fair Work Agency established
1 October 2026	Most employment tribunal time limits extended from 3 to 6 months
30 October 2026	Duty to take all reasonable steps to prevent sexual harassment, including by third parties

Source: GOV.UK: Employment Rights Act timeline update, 22 October 2026

Sick pay and family leave

From 6 April 2026, Statutory Sick Pay is paid from the first day of sickness rather than the fourth day, and the lower earnings limit no longer applies. For 2026/27 the weekly rate is £123.25 or 80% of the employee's average weekly earnings, whichever is lower. The government estimates that the sick pay changes give workers about £400 million a year in extra sick pay.

Paternity leave became a day-one right. The government says this makes 32,000 more fathers and partners eligible. About 1.5 million more parents became eligible for unpaid parental leave.

Dismissal, redundancy and tribunals

Section 25 of the Act changes the qualifying period for unfair dismissal from two years to 6 months from 1 January 2027, and removes the cap on the compensatory award. The maximum protective award for failing to consult on collective redundancies doubled from 90 to 180 days' pay on 6 April 2026.

From 1 October 2026 the time limit for most employment tribunal claims rose from 3 months to 6 months. This does not apply where the relevant date was before 1 October 2026.

Dismissing someone for refusing a change to their contract, known as fire and rehire, is planned to become automatically unfair in most cases from March 2027.

What changes in 2027

In April 2027 a right to bereavement leave, including after pregnancy loss before 24 weeks, is planned, along with an organisation-wide threshold for collective redundancy consultation. Employers with 250 or more workers in the private and voluntary sectors are due to publish equality action plans from April 2027.

From October 2027 pregnant women and new mothers are due to get stronger protection from dismissal, and employers refusing flexible working will have to cite one of 8 reasons and act reasonably.

Guaranteed hours, notice of shifts and pay for cancelled shifts for zero-hours workers have no start date; the government says they depend on consultation.

Employment Rights Act 2025: changes planned for 2027

Planned date	Change
1 January 2027	Unfair dismissal qualifying period cut from two years to 6 months; compensation cap removed
March 2027	Fire and rehire becomes automatically unfair in most cases
April 2027	Bereavement leave, including pregnancy loss; organisation-wide collective redundancy threshold
October 2027	Stronger dismissal protection for pregnant women and new mothers; tighter rules on refusing flexible working
No date set	Guaranteed hours, shift notice and cancellation pay for zero-hours workers

Source: GOV.UK: Employment Rights Act timeline update, 22 October 2026

Frequently asked questions

When did the Employment Rights Act 2025 become law?

The Employment Rights Act 2025 received Royal Assent on 18 December 2025. Its measures start on different dates from 2025 to 2027 under commencement regulations.

When does unfair dismissal protection start after 6 months?

From 1 January 2027 the qualifying period for unfair dismissal protection falls from two years to 6 months, under section 25 of the Act and SI 2026/559.

Is Statutory Sick Pay now paid from day one?

Yes. Since 6 April 2026 Statutory Sick Pay is paid from the first day of sickness, the lower earnings limit no longer applies, and the 2026/27 rate is £123.25 a week or 80% of average weekly earnings if lower.

How long does an employee have to bring a tribunal claim?

Most tribunal claims now have a 6 month time limit, up from 3 months, from 1 October 2026. Claims where the relevant date was before 1 October 2026 keep the old limit.

When do the zero-hours contract changes start?

No date has been set for the zero-hours contract changes. The government says guaranteed hours, shift notice and cancellation pay depend on consultation.