The UK’s new Employment Rights Act 2025 is the most significant overhaul of employment legislation in recent years. Aiming to reform the modern-day workplace, by putting in new protections for employees and improving job security for millions of workers across the UK.
Many of the changes will come into effect gradually throughout 2026 and 2027, meaning both employers and employees should start preparing now.
Key changes employers need to know
Stronger protections for workers: One of the main reforms is the reduction in the qualifying period for unfair dismissal claims, dropping from two years to six months from January 2027. In addition, the cap on compensation for unfair dismissal is expected to be removed, potentially increasing the financial risks associated with dismissals.
New rights for zero-hours and shift workers: The legislation introduces greater security for workers on irregular contracts. Employees will have the right to receive reasonable notice of shifts, compensation for short-notice cancellations, and the opportunity to request guaranteed hours based on their regular working patterns.
Day-one rights and family-friendly policies: Several family and wellbeing-related benefits will apply from the first day of employment, including paternity leave and unpaid parental leave. Statutory Sick Pay will also be expanded by removing waiting periods and the lower earnings threshold.
Stronger protections against harassment: Employers will face greater responsibility to prevent workplace harassment, including a duty to take “all reasonable steps” to protect employees, this includes harassment by third parties such as customers or clients.
Key implementation dates
April 2026
- Day-one right to paternity leave
- Day-one unpaid parental leave
- Bereaved partners’ extended paternity leave rights
- Statutory Sick Pay reforms (removal of the waiting period and lower earnings limit)
- Stronger whistleblowing protections around sexual harassment
- Increased collective redundancy protective awards
- Creation of the Fair Work Agency (a new labour market enforcement body)
October 2026
- Stronger duties on employers to prevent workplace harassment
- Employers liable for third-party harassment (e.g. customers or clients)
- Stronger trade union access rights to workplaces, and employers must inform workers of their right to join a union
January 2027
- Unfair dismissal qualifying period reduced from 2 years to 6 months
- Removal of the cap on unfair dismissal compensation
- New restrictions on “fire and rehire” practices
TBC 2027
- Restrictions on zero-hours and low-hours contracts
- Right to reasonable notice of shifts and compensation for cancellations
- Enhanced pregnancy and maternity dismissal protections
- New statutory bereavement leave rights
- Stronger flexible working rights
- Equality action plans for larger employers.
What this means for you
For businesses: For employers, the changes will likely require updates to employment contracts, policies, and HR processes over the next two years. Recruitment strategies may also evolve as businesses place greater focus on compliance, workforce planning, and employee engagement.
For employees: For jobseekers and employees, the new legislation is designed to provide greater job security, stronger workplace protections, and improved access to benefits from the start of employment.
At Talentmark, we continue to monitor these developments closely and support our clients with compliant hiring strategies, workforce planning, and guidance on the changing employment legislation.
