The Employment Rights Act 2025, which came into effect in December, marks one of the most significant updates to UK employment law in decades. Designed to strengthen worker protections and modernise workplace practices, the Act introduces phased changes that will impact all employers throughout 2026 and 2027.

Key Changes Introduced
  • Day-One Rights: From April 2026, statutory sick pay will be available from the first day of employment, alongside extended family leave entitlements.
  • Zero-Hours Protections: Employees working regular hours over a 12-week period will gain the right to request guaranteed hours and receive compensation for cancelled shifts.
  • Fair Work Agency: A new enforcement body will oversee compliance and investigate breaches.
  • Fire-and-Rehire Restrictions: Employers will need to demonstrate genuine financial necessity before implementing contractual changes.
  • Unfair Dismissal: From January 2027, the qualifying period for protection will reduce from two years to six months, and compensation caps will be removed.
  • Enhanced Union Rights: Lower thresholds for strike ballots, longer mandates, and digital voting options will make industrial action easier to organize.
  • Harassment Prevention Duties: Employers will have a legal obligation to take proactive steps to prevent workplace harassment.
What Employers Should Do Now
  • Review Contracts and Policies: Ensure terms reflect upcoming changes, particularly around sick pay, zero-hours arrangements, and dismissal procedures.
  • Update HR Systems: Implement processes to track regular hours, manage leave entitlements, and handle consultation requirements.
  • Train Managers: Equip leadership teams with knowledge of new rights and obligations to avoid compliance risks.
  • Plan Ahead: Budget for potential increases in tribunal claims and compensation, and prepare for greater union engagement.

The Employment Rights Act 2025 represents a shift toward greater fairness and transparency in the workplace. Employers should act now to prepare for these changes and safeguard compliance.

Why Acting Now Matters

The Employment Rights Act 2025 signals a major shift in the balance of workplace rights and responsibilities. With earlier access to statutory protections, stronger safeguards for zero‑hours staff, enhanced union powers, and tougher requirements around dismissal and harassment prevention, employers will face a more regulated and scrutinised landscape over the next two years.

Those who prepare early—by reviewing contracts, updating systems, training managers, and budgeting for the impact of these changes—will be best positioned to stay compliant and maintain positive employee relations. By taking a proactive approach now, organisations can not only mitigate risk but also build a fairer, more transparent, and more resilient workplace for the future.