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Employment Rights Act 2025: What Employers Need to Know in 2026
The biggest overhaul of UK employment law in a generation is being phased in through 2026 and 2027. Here’s what’s changing, when, and what you need to do.
The big picture
What Is the Employment Rights Act 2025?
The Employment Rights Act 2025 became law in December 2025. It gives workers new rights from day one, strengthens protection against unfair dismissal and changes how employers handle sickness, family leave, harassment and contract changes.
The changes are arriving in stages through 2026 and 2027. Clearpath UK helps you understand what applies to your business, update your contracts and policies, and prepare your managers before each change takes effect.
Timeline
When the Changes Take Effect
The Act is being introduced in stages between 2025 and 2027. Here are the changes that matter most to employers, and when they apply.
April 2026
- Paternity leave and unpaid parental leave become day-one rights
- Statutory sick pay from the first day of absence, with the lower earnings limit removed
- Maximum protective award for collective redundancy consultation failures doubled to 180 days’ pay
- New bereaved partner’s paternity leave
- Sexual harassment added to whistleblowing protections
- Fair Work Agency launched
October 2026
- Employment tribunal time limits extended from three to six months (1 October)
- Duty to take all reasonable steps to prevent sexual harassment, including by third parties
- New trade union access and representation rights
1 January 2027
- Unfair dismissal qualifying period cut from two years to six months
- Cap on unfair dismissal compensation removed
- Dismissing and re-engaging staff to impose certain contract changes (“fire and rehire”) becomes automatically unfair in most cases
- Duty to tell workers about their right to join a trade union
Later in 2027
- Guaranteed hours for zero and low-hours workers, reasonable notice of shifts and pay for cancelled shifts
- Flexible working refusals must be reasonable
- Unpaid bereavement leave, including pregnancy loss
- Stronger dismissal protection for pregnant women and new mothers
- Mandatory gender equality and menopause action plans for larger employers
- Limits on NDAs covering harassment and discrimination
Dates checked in September 2026 against Acas guidance. Some later dates are still to be confirmed by the government.
What it means for you
How the Changes Affect Your Business
The Act touches almost every part of the employee lifecycle. These are the areas where employers will feel it most.
Getting ready
Your Employment Rights Act Checklist
A few practical steps now will save time, cost and claims later. Start with these.
- Review employment contracts and probation clauses
- Update your staff handbook and key policies
- Check sick pay processes and absence budgets
- Carry out a sexual harassment risk assessment
- Train managers on probation reviews and fair dismissals
- Plan any contract changes before January 2027
- Review zero and low-hours contracts and rotas
- Keep clear records of holiday and holiday pay
Not sure where to start?
Our HR and employment law advisers can review your contracts, policies and processes and tell you exactly what needs to change, and when.
- Contracts and handbook review
- Manager training
- Support as each change comes in
Who’s most affected
Sectors That Will Feel the Changes Most
Every employer is affected, but businesses with shift work, flexible hours or customer-facing teams have the most to prepare for.
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Frequently Asked Questions
When does the Employment Rights Act 2025 come into force?
It’s being introduced in stages. Some changes took effect in late 2025 and April 2026, more follow in October 2026 and January 2027, and others are expected later in 2027.
Do I need to update my employment contracts?
Most businesses will. Contracts, probation terms, sick pay clauses and policies should be reviewed so they reflect the new rules before they take effect.
Does the six-month unfair dismissal rule apply to existing staff?
Yes. From 1 January 2027, employees with six months’ service will generally be able to claim unfair dismissal, including staff you already employ.
What is the Fair Work Agency?
A new government body, launched in April 2026, that brings together the enforcement of rights such as the minimum wage, holiday pay and statutory sick pay.
Can you help us prepare?
Yes. We can review your contracts, handbook and processes, train your managers and support you through each change as it comes in.