Following a bumpy journey through Parliament and House of Lords, the Employment Rights Act 2025 (“the ERA”) received Royal Assent on 18 December 2025.  The path to implementation of the new measures remains subject to further consultation in certain areas.  However, the Government published an updated implementation plan on 3 February 2026. 

We set out a summary of some of the key changes, relevant timings and practical steps to help employers prepare for the forthcoming changes below.  Our key takeaway is to ensure that your policies and procedures are updated at the relevant stages and that managers are trained and familiar with the changes.

Area of Law – Trade Unions and Industrial Action

Date due to be in force: February 2026

Main provisions:

·       Dismissal for taking part in industrial action ‘automatically unfair’

·       Time needed to give notice of industrial action reduces to 10 days

·       Unions will need a simple majority to vote for industrial action, and picket supervisors will no longer be required

·       Industrial action mandates will last for 12 months, and industrial action/ballot notices will be simplified

Practical steps:

·       For employers who recognise trade unions, ensure that your policies and internal guidance is updated to reflect the new provisions.

·       Train managers to ensure there is an awareness that dismissals due to taking part in industrial action will be unlawful, and remind them of the importance of documenting key decisions at each stage of the disciplinary process.

Date due to be in force: October 2026

Main provisions:

·       A new duty for employers to inform workers of their right to join a trade union

·       A right to reasonable accommodation and facilities for trade union reps to carry out their duties

·       Updated rules on a trade union’s right of access to the workplace and workers taking part in industrial action to be protected against detriment (being treated less favourably)

Practical steps:

Inform workers of their new rights in good time.

Date due to be in force: 2027

Main provisions:

·       Laws will be extended protecting trade unions members from discrimination and being blacklisted

Practical steps:

Inform workers of their new rights in good time.

Area of Law – Family Friendly Rights

Date due to be in force: 6^th April 2026

Main provisions

·       Paternity and ordinary parental leave becomes a day 1 right

·       Restriction on taking paternity leave after shared parental leave to be removed

·       Introduction of bereaved partners’ paternity leave

Practical steps:

·       Ensure policies and procedures are updated to reflect the new provisions.

·       Ensure the increased costs are budgeted for.

Date due to be in force: 2027

Main provisions:

·       A right to unpaid bereavement leave will be for all workers

·       A right to bereavement leave for pregnancy losses before 24 weeks

·       Enhanced protection against dismissal for pregnant workers and new mothers

Area of Law – Statutory Sick Pay

Date due to be in force: 6^th April 2026

Main provisions:

·       SSP will be paid from the first day of illness

·       Lower earnings limit will be removed

Practical steps:

·       Ensure policies and procedures are updated to reflect the change.

·       It will be essential for managers to be trained to enable them to conduct return to work meetings, and to have effective policies in place for individuals taking regular unrelated days off work.

·       Ensure the increased costs are budgeted for.

·       Update payroll teams to ensure this is actioned.

Area of Law – Collective Redundancy

Date due to be in force: April 2026

Main provisions:

·       Maximum protective award for failure to consult in collective redundancy increases to 180 days’ pay (from 90 days)

Practical steps:

·       Update relevant policies and internal guidance. 

·       Ensure that managers responsible for planning significant workplace reorganisation processes are aware of the changes.

Date due to be in force: 2027

Main provisions:

·       Employers to consider the total number of redundancies across the whole organisation, not just individual workplaces

Area of Law – Establishment of the Fair Work Agency

Date due to be in force:  7^th April 2026

Main provisions:

·       A new Government body to assist with the enforcement of employment laws

Practical steps:

One to keep an eye on – the scope and remit of the Fair Work Agency and extent to which they will become involved in disputes is yet to be confirmed.

Area of Law – Whistleblowing

Date due to be in force: April 2026

Main provisions:

·       Complaints regarding alleged sexual harassment will become protected as a qualifying disclosure, gaining protection from detriment and dismissal because of the disclosure

Practical steps:

Ensure policies and procedures are updated to consider the new provisions.

Area of Law – Dismissal and re-engagement (fire and rehire)

Date due to be in force: October 2026

Main provisions:

·       Dismissing someone and then rehiring them on worse terms and conditions will become automatically unfair dismissal (in most cases)

Practical steps:

Ensure policies and procedures are updated to consider the new provisions.

Area of Law – Harassment

Date due to be in force: October 2026

Main provisions:

·       Employers will be liable for third party harassment (e.g. by customers) unless they have taken “all reasonable steps” to prevent it

·       Regulations to be introduced to specify what steps are “reasonable”

Practical steps:

·       Ensure existing policies on sexual harassment are reviewed and extended to cover the wider obligations, including risk assessment procedures, to encourage reporting and safeguarding measures.

·       Ensure appropriate signage/notification to third parties that harassment will not be tolerated.

Area of Law – Employment Tribunal Time Limits

Date due to be in force: No earlier than October 2026

Main provisions:

·       The time limit for making a claim to the employment tribunal will increase to 6 months (from 3 months)

Practical steps:

·       In addition to the recently extended ACAS early conciliation period (to 12 weeks) this could mean that there is a considerable delay between an incident/employee leaving and receiving a potential claim.

·       Where appropriate consider the benefit of earlier resolution via ACAS/ settlement agreement.

·       Increased importance of ensuring that managers and HR teams fully document and retain records of complaints, and internal processes such as investigations, grievances and disciplinaries. 

Area of Law – Zero hours and low hours contracts

Date due to be in force: 2027

Main provisions:

·       Workers on zero-hours contracts will get the right to request guaranteed working hours

Practical steps:

·       Carry out a review of all workers this might apply to and consider if increased costs might be incurred.

·       Ensure policies and procedures are updated to consider the new provisions, and whether any new systems need to be implemented to assist with the change.

Area of Law – Flexible working

Date due to be in force: 2027

Main provisions:

·       An employer will only be able to reject flexible working requests on specified grounds if reasonable to do so, with reasons to be provided

Practical steps:

Ensure policies and procedures are updated to consider the new provisions, and managers appropriately trained.

Area of Law – Unfair Dismissal

Date due to be in force: January 2027

Main provisions:

·       Introduction of the 6-month qualifying period to bring an unfair dismissal claim (currently 2 years). Note that this is retrospective, so although the change applies from January 2027, this will apply to employees who have 6 months’ service at that date.  Employers should bear in mind that employees may have the right to add a weeks’ statutory notice to their period of continuity of service, meaning that this could apply to those starting in the last week of June 2026.)

·       Compensatory award cap (currently the lower of £118,223 or 12 months’ gross pay) to be removed entirely

Practical steps:

·       Effective probationary periods will be essential – ensure that policies are updated and that managers are trained to ensure performance reviews take place (and are well documented) throughout the initial 6-month period of employment.

·       In the event that a new employee is not working out, ensure that the probationary period is ended in good time prior to them gaining 6 months’ service (noting too the ability to add a weeks’ notice to the termination date in some circumstances).

·       Carry out a review of all disciplinary/capability rules and procedures and ensure all managers/line managers are fully trained in how to implement them in light of the new rules.

·       Consider in appropriate cases whether exits via settlement agreements may be advisable.

 

This note seeks to provide an overview of the implementation of the Employment Rights Act 2025 and is not intended to amount to legal advice.  Please get in touch with KKnox@ortolan.com or jjones@ortolan.com to receive this in a handy table form, or to discuss any specific queries about how the Act may impact your business. 

 

Useful links

To find out more about all of the proposed changes brought by the ERA, and for further guidance, please see the following useful links:

Government Employment Rights Act 2025 Factsheet - https://assets.publishing.service.gov.uk/media/69440cd78f4636fa2c547e8a/employment-rights-act-2025-overview.pdf

Government background to Make Work Pay - https://www.gov.uk/government/collections/make-work-pay

Government updated roadmap for implementation - https://www.gov.uk/government/publications/implementing-the-plan-to-make-work-pay-and-employment-rights-act/plan-to-make-work-pay-and-employment-rights-act-timeline-update