The Employment Rights Act 2025 is the most significant piece of employment legislation in a generation. It introduces a wide-ranging programme of reform across dismissal rights, family leave, trade union law, flexible working, statutory sick pay, and enforcement. Most of the changes are being implemented in phases rather than at a single point — which means that for most employers, what is in force now is only the beginning of a period of sustained change that will continue through 2026 and into 2027.
What the Act is
The Employment Rights Act received Royal Assent in 2025 and sets out a broad programme of employment law reform. The Act itself establishes the framework — much of the detail, including specific rates, dates, and procedural requirements, will be set out in secondary legislation (regulations) which are being made and implemented on a phased timetable.
This phased approach has a practical implication for employers: the changes are not all arriving at once, and the full picture will not be clear until each set of regulations is made. Staying current requires active monitoring rather than a one-time review.
Early changes already in force
The earliest provisions to take effect include changes to trade union law and industrial action, which apply from February 2026. These include the removal of the 12-week protection limit for dismissal during lawful industrial action (making such dismissal automatically unfair without time limit), simplified ballot and notice requirements for unions, and extended mandate periods for industrial action.
From 6 April 2026, two further significant changes take effect: statutory sick pay becomes payable from day one (removing the three-day waiting period), and the Lower Earnings Limit for SSP eligibility is abolished. Simultaneously, paternity leave and unpaid parental leave become day-one rights, removing the previous 26-week and 12-month qualifying periods respectively.
What is coming later
The most discussed provision in the Act — changes to unfair dismissal qualifying periods — has not yet been implemented and is not expected to take effect until later in 2026 at the earliest, with some estimates pointing to 2027. When it does, it will fundamentally change how employers manage new starters and probation periods. The current two-year qualifying period for unfair dismissal claims is expected to be significantly reduced, meaning employees will gain access to the Employment Tribunal at a much earlier stage of their employment.
Other provisions expected in later phases include changes to flexible working rights, enhanced protections around zero-hours contracts, reforms to statutory redundancy pay, and the creation of a new Fair Work Agency to oversee compliance with employment rights. The precise timetable for each will be confirmed through secondary legislation.
The direction of travel
Whatever the precise timetable for individual provisions, the direction of the Act is unmistakable. Employee protections are being strengthened significantly. The threshold for accessing tribunal rights is being lowered. The burden on employers to manage people decisions correctly, document them thoroughly, and apply them consistently is increasing across virtually every area of the employment relationship.
The Act also signals a clear expectation about the standard of people management. Informality, inconsistency, and reliance on the qualifying period as a buffer against tribunal claims are all becoming less viable strategies. Employers who manage their people well — with clear processes, consistent application, and proper documentation — are significantly better placed to navigate this period than those who rely on procedural defences after the fact.
How employers should prepare
- Monitor implementation dates actively. Do not assume that provisions in the Act are currently in force — and do not assume that what is currently in force is all there is. Each phase of secondary legislation requires a fresh review.
- Start with what is already in force. Trade union reforms, SSP changes, and family leave day-one rights require action now. These are not future planning items.
- Review contracts, handbooks, and policies. The April changes alone require updates to most standard employment documentation. A comprehensive review before further reforms arrive is sensible.
- Prepare managers for the unfair dismissal changes. The reduction in qualifying periods will be the most operationally significant change for most employers. Probation management needs to be active, documented, and fit for a world in which employees have tribunal access earlier.
- Build HR processes that do not rely on qualifying periods as a safety net. Good documentation, consistent management, and fair process are the only reliable defences — and they should be standard practice regardless of whether a qualifying period exists.
The Employment Rights Act will be a recurring feature of employment law for years. The employers who manage it best will be those who build the habits and processes to stay ahead of it — not those who react to each change as it arrives.
Further briefings covering each phase of the Act's implementation will be published on the HR Newsdesk as regulations are made and take effect.