The biggest overhaul of UK employment law in a generation is now in force, and the clock is already ticking. Here is everything you need to know, and how we can help you navigate what comes next.
The Employment Rights Act 2025 received Royal Assent on 18 December 2025, and its implications are already being felt across workplaces up and down the UK. With a phased rollout running through 2026 and into 2027, employers are facing urgent deadlines to update contracts, policies and procedures, while candidates are gaining a raft of new protections and entitlements that change the landscape of job-seeking and employment from day one.
At its core, the Act represents a fundamental reset of the relationship between workers and employers. Whether you are a business looking to stay compliant and competitive, or a candidate wanting to understand your rights, the message is the same: do not wait. Action is needed now.
What Has Already Changed
Several provisions are already live. From 18 February 2026, much of the Trade Union Act 2016 was repealed, simplifying rules around industrial action and strengthening protections for workers who participate in it. This is not just a headline change. It reshapes how employers must approach workforce relations and dispute management.
The National Minimum Wage also increased on 1 April 2026, with workers aged 21 and over now entitled to £12.71 per hour. For the 18 to 20 age group, the rate has risen to £10.85, and for 16 to 17 year olds and apprentices, the new rate is £8.00. These are not optional updates. Businesses must be paying the correct rate now.
April 2026: The First Major Wave
From 6 April 2026, a significant cluster of changes come into effect that will be felt immediately in recruitment and employment:
- Day-one paternity leave and unpaid parental leave: Employees are now entitled to these rights from their very first day of employment, removing the qualifying period entirely.
- Statutory Sick Pay reform: The lower earnings limit and the three-day waiting period before SSP kicks in have both been abolished, meaning more workers qualify and from earlier in their absence.
- Bereavement leave for bereaved partners: From 6 April 2026, bereaved fathers and partners can take up to 52 weeks of paternity leave if the mother or primary adopter of their child dies within the first year.
- Doubled protective award for collective redundancy: The maximum penalty for failing to consult properly on collective redundancies has doubled, from 90 days’ gross pay to 180 days’ gross pay. The financial risk of getting this wrong has never been higher.
- Whistleblowing strengthened: New protections now cover workers who raise concerns about workplace sexual harassment, which becomes a qualifying disclosure under whistleblowing law.
- Gender pay gap and menopause action plans: From 6 April 2026, employers can voluntarily begin publishing these action plans. Expect them to become mandatory in 2027. Preparation should start now.
On 7 April 2026, the Fair Work Agency launches as the UK’s dedicated employment rights enforcement body. It combines minimum wage enforcement, statutory sick pay oversight, labour exploitation response, and holiday pay enforcement under one roof. It can investigate, issue penalties, and take legal action on behalf of workers.
For employers, this means greater scrutiny. For candidates, it means there is now a single, empowered agency in their corner.
October 2026: The Second Wave Arrives
By October 2026, employers must have moved substantially further in their compliance journey:
- Sexual harassment: ‘all reasonable steps’ standard: Employers will be legally required to take all reasonable steps to prevent sexual harassment of their employees, including by third parties such as customers and clients. The current ‘reasonable steps’ bar is raised significantly.
- Employment Tribunal time limits double: The window for employees to bring a claim will extend from three months to six months. This dramatically increases litigation exposure, a factor that must be reflected in how employers manage departures and disputes.
- Trade union rights extended: Employers will be required to inform all workers of their right to join a trade union. Unions will have a strengthened right of access to workplaces, and new rights for union representatives, including equality reps, will take effect.
- Flexible working tightened: Employers will only be able to reject a flexible working request where a statutory ground exists and it is reasonable to refuse. Consulting with employees before rejection will become mandatory.
January 2027: The Landscape Shifts Again
Arguably the most significant change arrives on 1 January 2027: the qualifying period for unfair dismissal protection falls from two years to just six months. This means anyone hired from around late June 2026 onwards will gain unfair dismissal protection from January 2027.
Also landing in January 2027, restrictions on ‘fire and rehire’, dismissing employees and re-engaging them on worse terms, become law and will constitute automatically unfair dismissal in most circumstances.
Further changes expected across 2027 include zero-hours contract reforms giving workers the right to a contract reflecting their regularly worked hours, and enhanced protections for pregnant workers and those returning from maternity leave.
FOR EMPLOYERS: KEY ACTIONS TO TAKE NOW
- Review and update all employment contracts to reflect day-one rights, SSP changes, and paternity leave entitlements. Do this immediately.
- Audit your use of zero-hours or low-hours contracts and begin planning for the guaranteed-hours framework expected in 2027.
- Review your dismissal and probation procedures in light of the January 2027 unfair dismissal qualifying period change. This affects people you hire from now.
- Strengthen your sexual harassment prevention policy ahead of the October 2026 ‘all reasonable steps’ requirement. Third-party harassment from clients and customers must be addressed.
- Train managers on the updated flexible working process. Rejections must be reasonable and properly consulted on.
- Factor the doubled tribunal time limit into how you manage exits, settlement negotiations and grievances.
- Begin preparing menopause and gender pay gap action plans voluntarily. Mandatory compliance will follow in 2027.
Ensure your payroll reflects the new National Minimum Wage rates as of 1 April 2026.
FOR CANDIDATES: WHAT YOU ARE NOW ENTITLED TO
- From your first day in a new job, you are entitled to paternity leave and unpaid parental leave, with no qualifying period required.
- If you are sick, you can now claim Statutory Sick Pay from day one of your illness, with no earnings threshold to meet.
- If you are dismissed after 1 January 2027, you may have unfair dismissal protection after just six months of service.
- If you raise concerns about workplace sexual harassment, you now have whistleblower protections.
- You now have six months, not three, to bring an Employment Tribunal claim from October 2026.
- You have the right to request flexible working and your employer must consult with you before refusing.
How We Can Help
The Employment Rights Act 2025 is not just a compliance exercise. It is a strategic opportunity. Employers who move quickly to embed the new rights will attract better talent, reduce legal risk, and build more resilient teams. Candidates who understand their rights will make better decisions about where to work and how to protect themselves.
As a recruitment and training partner, we are uniquely placed to support both sides of this equation.
For Employers
- Compliant job descriptions and offer documentation: We can help you ensure that every offer you make reflects your legal obligations from day one, avoiding costly disputes before they start.
- Training for managers and HR teams: We deliver targeted training on the Act’s requirements, from handling flexible working requests correctly to understanding the new dismissal landscape ahead of January 2027.
- Workforce planning and contract reviews: Our consultants can work alongside your HR teams to audit existing arrangements and identify where gaps exist.
- Candidate briefing: When we place candidates with you, we ensure they arrive understanding the new rights framework, reducing the risk of early disputes arising from misunderstandings.
For Candidates
- Know your rights from day one: We brief every candidate we work with on what they are entitled to before they start a new role, so they can negotiate from an informed position.
- Employment rights guidance: Our team can walk you through your specific situation, whether you are navigating a new job offer, a request for flexible working, or a concern about how your employer is treating you.
- Training and upskilling: Many of the new rights intersect with employability, from understanding what fair work looks like to preparing for roles in organisations with strong union representation.
- Ongoing support: We do not disappear once you are placed. If you experience issues in a new role, we are available to advise and signpost you to the right support.
The Employment Rights Act 2025 will define the employment landscape for years to come. The question is not whether it will affect your business or your career. It will. The question is whether you are ready.
We are here to make sure you are. Get in touch with our team today to discuss how we can support you through this transition.
This article is for information purposes only and does not constitute legal advice. For guidance specific to your circumstances, please speak to a qualified employment law solicitor.