Changes introduced by the Employment Rights Act 2025

The Employment Rights Act 2025 introduces a wide range of reforms to employment law, with implementation taking place in stages between December 2025 and 2027.

Already in force:

Repeal of the Strikes (Minimum Service Levels) Act 2023
(In force from 18 December 2025)

The minimum service level rules for strikes have been removed.

Trade union reforms
(In force from 18 February 2026)

• Notice period for industrial action reduced from 14 days to 10 days
• Requirement for picket supervisors removed
• Industrial action mandates extended from 6 months to 12 months
• Simplified industrial action and ballot notices
• Changes to political fund rules
• Removal of the 40% support threshold for key public services (now a simple majority applies)
• Increased protections against dismissal for taking industrial action

Day one rights – notice provisions
(In force from 18 February 2026)

Employees newly eligible for Day 1 paternity leave and unpaid parental leave can now give notice.

From April 2026:

Family-friendly rights
(From 6 April 2026)

• Paternity leave becomes a Day 1 right (removing the 26-week qualifying period)
• Unpaid parental leave becomes a Day 1 right (removing the one-year service requirement)
• Removal of restrictions on taking paternity leave after shared parental leave
• Introduction of bereaved partners’ paternity leave (up to 52 weeks, unpaid, Day 1 right)

Statutory Sick Pay (SSP) reforms
(From 6 April 2026)

• Removal of the lower earnings limit
• SSP payable from day one of sickness (removing the three-day waiting period)
• SSP rate increases to £123.50 per week

Trade union recognition process
(From 6 April 2026)

Simplification of the trade union recognition process.

Equality action plans (for employers with 250+ employees)
(From 6 April 2026 – voluntary, becoming mandatory in 2027)

• Gender pay gap action plans required
• Menopause support action plans
• Greater transparency around outsourced service providers and associated pay disparities

Collective redundancy consultation penalties
(From 6 April 2026)

The maximum protective award increases from 90 days’ pay to 180 days’ pay.

Protected disclosures
(From 6 April 2026)

Disclosures of sexual harassment expressly qualify as protected disclosures.

Fair Work Agency
(From 7 April 2026)

A new enforcement body with powers to:

• Investigate workplaces
• Issue penalties
• Bring claims on behalf of workers

From August 2026:

Trade union ballot changes
(From August 2026)

• Electronic and in-person voting permitted (subject to agreement)
• Phased removal of the 50% turnout requirement for industrial action ballots

From October 2026:

Sexual harassment protections
(From October 2026)

• Employers must take all reasonable steps to prevent workplace harassment
• Duties extend to third-party harassment and other protected characteristics

Tipping law reforms
(From October 2026)

• Mandatory consultation with workers on tipping policies
• Policy reviews required every three years
• New enforcement route via the Employment Tribunal

Further trade union reforms
(From October 2026)

• Duty to inform workers of their right to join a union
• Updated rules on union access to workplaces
• New rights to facilities and time off for union representatives
• Updated Code of Practice on union recognition
• Protection from detriment for taking industrial action

Employment tribunal time limits
(From October 2026)

The time limit for bringing claims is extended from three months (less one day) to six months.

From January 2027:

Unfair dismissal reforms
(From 1 January 2027)

• Qualifying period reduced from two years to six months
• Removal of the compensatory award cap

Fire and rehire
(From January 2027)

Dismissal for refusing certain contractual changes becomes automatically unfair, except in cases of severe financial difficulty. An updated Code of Practice is expected.

2027 (dates to be confirmed):

Further reforms are expected, including:

Enhanced protections for pregnant women and new mothers

Protection from dismissal during pregnancy and up to 18 months after childbirth, except in limited circumstances.

Flexible working

Strengthening of Day 1 rights, including:

• Requirement for employers to justify refusals
• Mandatory consultation process

Collective redundancy thresholds

Introduction of a new threshold for multi-site redundancies (details to be confirmed).

Zero-hours contracts

• Right to guaranteed hours
• Right to reasonable notice of shifts
• Compensation for short-notice cancellations
• Protections extended to agency workers

Sexual harassment guidance

Further clarification on what constitutes “reasonable steps” for employers.

Trade union reforms

• Stronger protections against discrimination and blacklisting
• New industrial relations framework
• Electronic voting for recognition and derecognition ballots

Other measures

• Restrictions on non-disclosure agreements relating to harassment and discrimination
• Extended blacklisting protections
• Regulation of umbrella companies
• Expansion of bereavement leave, including pregnancy loss

If you would like advice or assistance on how the Employment Rights Act 2025 may affect your business, or support in preparing for the upcoming changes, please contact our Employment team on 0113 207 0000.