The Employment Rights Act 2025 received Royal Assent on 18 December 2025, and it represents the most significant reform of UK employment law in a generation. For employers and employees alike, however, the most important thing to understand is that the Act is not arriving all at once. Its measures are being introduced in stages, with some already in force, several more taking effect in October 2026, and the headline changes to unfair dismissal following on 1 January 2027.
When we first wrote about this legislation in October 2024, it was still making its way through Parliament as the Employment Rights Bill, and the government was proposing that protection from unfair dismissal should apply from an employee’s first day. A great deal has changed since then, not least on that point. In this guide, we set out what the Act now says, when each change is due to take effect, and the steps we are recommending to the businesses and individuals we advise.
Employment Rights Act 2025 timeline
The table below summarises the government’s current implementation timetable. Many of the finer details remain subject to consultation, and we would expect some of the 2027 dates to be confirmed, or possibly moved, over the coming months.
| Date | What changes |
|---|---|
| 18 December 2025 | Act receives Royal Assent. Minimum service levels rules for strikes removed |
| 18 February 2026 | Most trade union and industrial action reforms take effect |
| 6 April 2026 | Day one paternity leave and unpaid parental leave. Statutory sick pay from the first day of absence, with the lower earnings limit removed. Maximum collective redundancy protective award doubled to 180 days’ pay. Sexual harassment becomes a whistleblowing “qualifying disclosure”. Employers must keep holiday records for six years |
| 7 April 2026 | Fair Work Agency established to enforce employment rights |
| 1 October 2026 | Employment tribunal time limits increase from three months to six months for most claims |
| 30 October 2026 | Employers must take “all reasonable steps” to prevent sexual harassment, and become liable for third party harassment. Stronger trade union access rights |
| By end of 2026 | Employers must consult workers before creating or reviewing a tipping policy |
| 1 January 2027 | Unfair dismissal qualifying period reduced from two years to six months. Cap on unfair dismissal compensation removed. Fire and rehire becomes automatically unfair in most cases |
| During 2027 | Guaranteed hours for zero and low hours workers, stronger pregnancy and maternity protections, flexible working changes, unpaid bereavement leave, mandatory gender pay gap and menopause action plans for employers with 250 or more workers, NDA restrictions |
The Act applies in England, Wales and Scotland. Northern Ireland is taking forward its own, separate package of reforms.
What has already changed
A number of the Act’s measures are already in force, and it is worth checking that your contracts, policies and payroll processes reflect them.
Since 6 April 2026, paternity leave and unpaid parental leave have been “day one” rights, meaning an employee can give notice to take them from the very start of their employment rather than having to build up a period of service first. Statutory sick pay is now payable from the first day of illness, rather than the fourth, and the lower earnings limit has been removed, so employees no longer need to earn a minimum amount each week to qualify.
The stakes in collective redundancy situations have also risen. Where an employer proposes 20 or more redundancies at one establishment and fails to consult properly, the maximum “protective award” the tribunal can make is now 180 days’ pay for each affected employee, double the previous limit. In our experience, this is an area where early advice can save a business a considerable sum.
Finally, enforcement is changing. The new Fair Work Agency brings together several existing enforcement bodies and will take responsibility for matters such as holiday pay and statutory sick pay. Alongside this, employers must now keep records of annual leave and holiday pay for at least six years.
Changes coming in October 2026
Longer time limits for tribunal claims
From 1 October 2026, employees will have six months, rather than three, to bring most claims in the employment tribunal. For individuals, this provides welcome breathing space at what is often a stressful time. For employers, it means a claim may arrive some months after an employee has left, so it is sensible to keep clear records of the reasons for any dismissal and the process followed. If you would like to understand what a claim might be worth, our guide to unfair dismissal compensation explains how awards are calculated.
A stronger duty to prevent harassment
From 30 October 2026, employers will be required to take “all reasonable steps” to prevent sexual harassment of their staff. This is a higher standard than the current duty to take “reasonable steps”, and the government intends to set out in future regulations what those steps should include. At the same time, employers will become liable for harassment by third parties, such as customers, clients or contractors, unless they can show they took all reasonable steps to prevent it.
We would encourage employers to review their harassment policies, risk assessments and training now, rather than waiting until the end of October. If you have experienced harassment at work, our guide to making a workplace sexual harassment claim explains your options.
Unfair dismissal changes from 1 January 2027
The proposal for day one protection from unfair dismissal was ultimately dropped during the Bill’s passage through Parliament. Instead, from 1 January 2027, the “qualifying period”, meaning the length of time an employee must have worked for their employer before they can bring an ordinary unfair dismissal claim, will fall from two years to six months.
It is important to note that this will apply to dismissals taking effect on or after 1 January 2027, including for people who are already in employment. In practice, anyone who started work on or before around 1 July 2026 will have completed six months’ service by that date and will be protected.
The statutory cap on the compensatory award for unfair dismissal will also be removed from the same date. At present, that award is limited to the lower of 52 weeks’ gross pay or the statutory maximum. Once the cap is lifted, unfair dismissal claims will become considerably more significant for higher earners, and the potential financial exposure for employers will increase accordingly.
For employers, we expect probationary periods to become far more important. Decisions about whether a new starter is right for the role will need to be made, and properly documented, well before the six month point. Our guide to onboarding new employees is a useful place to start.
Restrictions on fire and rehire
Also from January 2027, dismissing an employee because they will not agree to a change to certain core terms, and then re-engaging them on less favourable terms, will be automatically unfair in most cases. This practice, often referred to as “fire and rehire”, will only be permitted in very limited circumstances, such as where a business is in genuine financial distress.
Changes expected during 2027
The government has not yet confirmed exact dates for most of the remaining measures, but we expect the following to take effect during 2027:
- Zero hours contracts: qualifying zero and low hours workers will be entitled to be offered guaranteed hours, together with reasonable notice of shifts and compensation where shifts are cancelled or cut short at short notice. Our guide to zero hours contracts for employers covers the current position.
- Flexible working: an employer refusing a request will need to explain why the refusal is reasonable, in addition to relying on one of the permitted business reasons. Our flexible working guide sets out the rules as they stand.
- Pregnancy and maternity: stronger protection against dismissal for pregnant employees and those returning from maternity leave.
- Bereavement leave: a new right to unpaid statutory bereavement leave.
- Action plans: gender pay gap and menopause action plans will become mandatory for employers with 250 or more workers.
- Non-disclosure agreements: clauses that seek to prevent workers from alleging or disclosing harassment or discrimination will be void.
How employers can prepare
With several changes arriving in quick succession, we are advising the businesses we work with to take a phased approach:
- Review your documents. Check contracts of employment, staff handbooks and policies against the timeline above, starting with those affected in October 2026.
- Revisit your harassment arrangements. Update your risk assessment and policy before 30 October 2026, including the risk of harassment by customers and other third parties.
- Strengthen your probation process. Make sure probation reviews are carried out, and recorded, well within the first six months of employment.
- Keep good records. With claims able to arrive up to six months after employment ends, clear records of decisions and processes will be invaluable.
- Support your managers. Line managers are often the first to deal with dismissals, grievances and flexible working requests, so training now will pay dividends later.
Our employment law team for businesses regularly helps employers review their documents and processes, and we would be happy to help you plan for each stage.
Frequently asked questions
Is the Employment Rights Act 2025 now in force?
Partly. The Act became law on 18 December 2025, but its measures are being brought into force in stages across 2026 and 2027, so some rights already apply while others are still to come.
Is unfair dismissal now a day one right?
No. The original proposal for day one protection was dropped. Instead, from 1 January 2027, the qualifying period for ordinary unfair dismissal claims will reduce from two years to six months.
When do employment tribunal time limits change?
From 1 October 2026, the time limit for bringing most employment tribunal claims increases from three months to six months. Acas early conciliation must still be started before a claim can be issued.
Has statutory sick pay changed?
Yes. Since 6 April 2026, statutory sick pay has been payable from the first day of absence, and employees no longer need to earn above the lower earnings limit to qualify.
Does the Act apply in Northern Ireland?
No. The Employment Rights Act 2025 applies in England, Wales and Scotland. Northern Ireland is developing its own employment law reforms.
How our employment team can help
Changes of this scale can feel daunting, whether you are running a business or trying to understand where you stand as an employee. Our employment team advises individuals on their rights at work and supports employers through every stage of change, from reviewing contracts and policies to negotiating settlement agreements.
We will continue to monitor developments and update this guide as further dates are confirmed. In the meantime, if you would like to discuss how the Act affects you or your business, please call us on 0161 930 5151, email employmentteam@gorvins.com or contact us online.
This guide is for general information only and does not constitute legal advice. Dates reflect the government’s published timeline as at 28 September 2026.