24/07/2026
Employment Rights Act 2025: What do employers need to know?
The Employment Rights Act 2025 represents the most significant overhaul of UK employment law in decades. Having received Royal Assent on 18th December 2025, its provisions are being implemented in stages throughout 2026 and 2027. Employers should use this period to review their policies, contracts and HR practices to ensure they remain compliant with the evolving legal framework.
Key Changes
1. Enhanced Protection Against Unfair Dismissal.
One of the most significant reforms is the reduction of the qualifying period for ordinary unfair dismissal claims. From January 2027, employees will generally become eligible to bring an unfair dismissal claim after six months' continuous service, rather than the previous two-year qualifying period. Employers will therefore need to ensure that probationary processes, performance management and disciplinary procedures are robust and well documented from the outset of employment.
2. Reform of Zero-Hours Contracts
The Act introduces greater protection for workers engaged on zero-hours and certain low-hours contracts. Rather than prohibiting such arrangements entirely, employers will be required to offer qualifying workers guaranteed hours where their working pattern demonstrates regularity. Workers will also benefit from rights to reasonable notice of shifts and compensation where shifts are cancelled or altered at short notice.
3. Statutory Sick Pay Reforms
Eligibility for Statutory Sick Pay has been widened by removing the lower earnings threshold and abolishing the waiting period before entitlement begins. As a result, many more workers will qualify for sick pay from the first day of illness, increasing employers' obligations when managing employee absence.
4. Family Rights from Day 1.
The Act expands family-friendly rights by making paternity leave and unpaid parental leave available from the first day of employment. These reforms are intended to provide greater flexibility and support for working families while removing previous qualifying service requirements.
5. Restrictions on "Fire and Rehire"
The legislation significantly restricts the practice of dismissing employees who refuse contractual changes before offering re-engagement on revised terms. Employers seeking to vary employment contracts will need to exercise greater caution and ensure that any proposed changes are legally justifiable and procedurally fair.
6. Stronger Workplace Protections
The Act strengthens employers' obligations to prevent workplace harassment, including harassment by third parties in certain circumstances. It also enhances whistleblowing protections relating to sexual harassment and introduces further obligations aimed at creating safer and more inclusive workplaces.
What Should Employers Be Doing Now?
Although many provisions are being introduced gradually, employers should begin preparing now by:
• Reviewing employment contracts and staff handbooks.
• Updating sickness absence, family leave and disciplinary policies.
• Reviewing the use of zero-hours and flexible working arrangements.
• Ensuring managers receive appropriate training on dismissal procedures and workplace conduct.
• Monitoring the phased implementation timetable and forthcoming secondary legislation.
How Harding Mitchell Solicitors Can Help
The Employment Rights Act 2025 will require many organisations to rethink existing employment practices. Early preparation will reduce legal risk and help employers implement the changes smoothly.
At Harding Mitchell Solicitors, we advise employers and employees on all aspects of employment law, including drafting employment contracts, reviewing workplace policies, managing disciplinary and grievance procedures, defending Employment Tribunal claims and ensuring compliance with the latest legislative developments.
If you would like advice on how the Employment Rights Act 2025 may affect your business, please contact us for tailored legal guidance by email on [email protected] or by telephone on 02031918080.
