1. Blog
  2. HR Compliance
  3. Employment Rights Act 2025: Key Changes and Dates for UK Employers

Employment Rights Act 2025: Key Changes and Dates for UK Employers

32 min read | Posted 5 Feb 2026, Last updated 16 Jul 2026

Written by

Petra Martins.

The Employment Rights Act 2025 is the biggest reform of UK employment law in a generation, introducing 28 separate changes between December 2025 and 2027. The Act received Royal Assent on 18 December 2025 and is being introduced in phases, with major implementation dates on 6 April 2026, 1 October 2026, and 1 January 2027. It affects every UK employer, regardless of size or sector, and covers statutory sick pay, unfair dismissal rights, harassment protections, zero-hours contracts, tipping practices, and trade union access.

This article sets out what has changed, what changes next, and what UK employers need to do to prepare.

On this page:

Key takeaways

Already in force: 6 April 2026

  • Statutory Sick Pay (SSP) reform: SSP is payable from day one of sickness absence, and the Lower Earnings Limit is removed.
  • Day-one paternity and unpaid parental leave: Employees can take these from their first day of employment.
  • Whistleblowing protection for sexual harassment disclosures: Sexual harassment becomes a “qualifying disclosure” under whistleblowing law.
  • Gender pay gap and menopause action plans (voluntary): Expected to become mandatory in 2027, subject to consultation.

Coming next: 1 October 2026

  • Third-party harassment duty: Employers must take all reasonable steps to prevent harassment of staff by customers, contractors, or members of the public.
  • Tipping policy consultation and review: Employers must consult workers before setting a tipping policy and review it at least every 3 years.
  • Trade union access rights: New obligations on union notification, workplace access, facilities, and time off for equality representatives.
  • Employment Tribunal time limit: Extended from 3 months to 6 months for most claims.

Then: 1 January 2027 and beyond

  • Unfair dismissal qualifying period (1 January 2027): Reduces from 2 years to 6 months, and the compensation cap is removed.
  • Fire and rehire restrictions (1 January 2027): Dismissing staff for refusing contract changes is usually automatically unfair.
  • Zero-hours and agency worker rights (2027, exact date to be confirmed): Guaranteed hours, shift notice, and cancellation compensation.

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is UK legislation that updates existing employment law and introduces new statutory rights for workers, as part of the government’s Plan to Make Work Pay. It received Royal Assent on 18 December 2025 and is being rolled out in stages, primarily on the common commencement dates of 6 April and 1 October, running through to 2027.

The Act covers five main areas, including job security and fair pay, family-friendly working, protection from harassment and discrimination, trade union rights, and enforcement of employment law through a new body called the Fair Work Agency.

Who is affected by the Employment Rights Act 2025?

Every UK employer is affected by the Employment Rights Act 2025, regardless of size, sector, or number of employees. Some provisions apply universally, such as the SSP changes and the extended Employment Tribunal time limit. Others apply more narrowly:

  • Hospitality employers are directly affected by the new tipping policy consultation and review requirements.
  • Large employers are the initial focus of gender pay gap and menopause action plan expectations, ahead of these becoming mandatory.
  • Employers using zero-hours or agency workers face new obligations on guaranteed hours and shift notice from 2027.
  • Employers in customer-facing roles face new liability for third-party harassment from October 2026.

What are the new Statutory Sick Pay (SSP) rules from April 2026?

From 6 April 2026, employees are entitled to Statutory Sick Pay from the first day of sickness absence, rather than from day four as under the previous rules. The Lower Earnings Limit has also been removed, meaning employees no longer need to earn a minimum weekly amount to qualify for SSP.

Example: An employee who previously earned below the Lower Earnings Limit and took a single day of sick leave would not have qualified for SSP before 6 April 2026. Under the new rules, that same employee is entitled to SSP for that first day.

Enforcement of SSP compliance sits with the new Fair Work Agency.

What day-one family-friendly rights started in April 2026?

From 6 April 2026, paternity leave and unpaid parental leave became available from the first day of employment, rather than requiring a minimum period of service. Employees can now also take paternity leave after shared parental leave, which was previously restricted.

What harassment and whistleblowing protections change under the Employment Rights Act 2025?

The Employment Rights Act 2025 introduces two separate harassment-related changes on two different dates.

From 6 April 2026: Sexual harassment became a “qualifying disclosure” under whistleblowing law, meaning workers who report sexual harassment gain the same legal protections from detriment and unfair dismissal as other whistleblowers.

From 1 October 2026: Employers must take all reasonable steps to prevent sexual harassment of their employees, raising the bar from the “reasonable steps” standard introduced by the Worker Protection Act 2023. From the same date, employers also become liable for harassment of their staff by third parties, such as customers, clients, contractors, or members of the public, unless they can show they took all reasonable steps to prevent it.

The Act also voids non-disclosure agreement (NDA) clauses that prevent workers from speaking out about harassment or discrimination.

What are the new tipping rules for employers?

From 1 October 2026, employers must consult workers or their representatives before creating a tipping policy, and must review and update that policy at least every 3 years. This requirement applies most directly to hospitality and other sectors where tipping is common practice.

What trade union rights are changing from October 2026?

From 1 October 2026, employers face new obligations to strengthen workers’ access to trade unions. Employers must:

  • Tell workers about their right to join a trade union
  • Allow trade unions improved access to the workplace
  • Provide reasonable facilities for trade union representatives
  • Allow paid time off for trade union equality representatives

How long will employees have to bring an Employment Tribunal claim from October 2026?

From 1 October 2026, the time limit for bringing most Employment Tribunal claims extends from 3 months to 6 months. This applies alongside the creation of the Fair Work Agency, which can also bring Employment Tribunal claims on behalf of workers in certain circumstances. A longer time limit gives workers more time to seek advice before submitting a claim, and increases the period during which an employer remains exposed to legal risk following a dismissal or workplace incident.

How is the unfair dismissal qualifying period changing from January 2027?

From 1 January 2027, the qualifying period an employee needs before they can bring an unfair dismissal claim reduces from 2 years to 6 months. The current cap on unfair dismissal compensation is also being removed from the same date.

Example: An employee starting a new role on 1 February 2027 would reach the 6-month qualifying period on 1 August 2027, rather than needing to wait until 1 February 2029 under the previous 2-year rule. Employers dismissing that employee after 1 August 2027 would need a fair reason and a fair process to defend an unfair dismissal claim.

This change makes probation periods, documented performance conversations, and consistent management practice significantly more important, since employees will be able to bring claims far earlier in their employment.

What are the new rules on fire and rehire from January 2027?

From 1 January 2027, dismissing an employee for refusing to agree to changes to their contractual terms will usually be treated as automatically unfair dismissal. This provision was originally scheduled for October 2026 but has been confirmed for 1 January 2027, aligning it with the wider unfair dismissal changes above.

The only exception applies where an employer is facing severe financial difficulty and has no genuine alternative to changing contract terms and dismissing employees who refuse.

What rights will zero-hours and agency workers get in 2027?

From 2027, the Employment Rights Act 2025 introduces new rights for workers on zero-hours contracts, including agency workers, covering:

  • The right to guaranteed hours based on hours regularly worked
  • Reasonable notice of shifts
  • Compensation for shifts cancelled at short notice

An exact 2027 commencement date has not yet been confirmed.

What is the Fair Work Agency?

The Fair Work Agency is a new single enforcement body created under the Employment Rights Act 2025 to oversee compliance with National Minimum Wage rules, holiday pay, employment agency standards, and serious labour exploitation. It has the power to issue and enforce civil penalties, share information with other enforcement bodies, and bring Employment Tribunal claims on behalf of workers in certain circumstances.

What happens if employers don’t comply with the Employment Rights Act 2025?

Employers who fail to comply with the Employment Rights Act 2025 face several forms of risk:

  • Employment Tribunal claims, with a time limit extending to 6 months from 1 October 2026 and no compensation cap for unfair dismissal claims from 1 January 2027
  • Civil penalties issued directly by the Fair Work Agency
  • Discrimination and constructive dismissal claims, particularly where sickness absence, harassment, or dismissal situations are handled inconsistently
  • Reputational and financial cost, including legal fees, management time, and settlement costs where a claim proceeds to a final hearing

Which iHasco courses have been updated for the Employment Rights Act 2025?

We review our course library against the final wording of the Employment Rights Act 2025 as each implementation date is confirmed, and updates affected courses in line with that timetable.

Courses already updated:

Being updated ahead of 1 October 2026:

Being updated ahead of 1 January 2027:

Each affected course includes advance-notice content ahead of a change taking effect, followed by a fuller update once that provision is in force.

What should employers do now to prepare?

  • Review probation periods and induction processes ahead of the 6-month unfair dismissal qualifying period on 1 January 2027
  • Update sickness absence policies and manager guidance in line with SSP changes
  • Review anti-harassment policies and training ahead of the third-party harassment duty commencing 1 October 2026
  • Draft or review a tipping policy and consultation process ahead of 1 October 2026, if applicable
  • Review trade union access arrangements ahead of 1 October 2026
  • Document performance, conduct, and absence conversations consistently, since documentation is a primary defence in Employment Tribunal claims
  • Train managers on each area above, since day-to-day management decisions are where most Employment Rights Act 2025 risk sits

Quick answers

When does the Employment Rights Act 2025 fully come into force?

The Employment Rights Act 2025 does not have a single commencement date. It is being introduced in phases from 6 April 2026 through to 2027, with further provisions still subject to consultation.

Does the Employment Rights Act 2025 apply to small businesses?

Yes. The Employment Rights Act 2025 applies to UK employers regardless of size, although some provisions, such as gender pay gap and menopause action plans, are initially focused on larger employers before wider requirements are confirmed.

What counts as third-party harassment under the Employment Rights Act 2025?

Third-party harassment is harassment of an employee by someone who does not work for the employer, such as a customer, client, contractor, or member of the public. From 1 October 2026, employers are liable for this unless they can show they took all reasonable steps to prevent it.

How much does an Employment Tribunal claim typically cost an employer?

Employer legal costs for an Employment Tribunal claim commonly start from £25,000 once solicitors’ fees and hearing preparation are included, before accounting for management time, disruption, and any settlement or award.

Will the unfair dismissal compensation cap still apply after January 2027?

No. From 1 January 2027, the current cap on unfair dismissal compensation is removed alongside the reduction in the qualifying period from 2 years to 6 months.

What is a qualifying disclosure under whistleblowing law?

A qualifying disclosure is information a worker reports that they reasonably believe shows wrongdoing, such as a criminal offence, health and safety risk, or breach of a legal obligation. From 6 April 2026, sexual harassment is included as a qualifying disclosure under UK whistleblowing law.

How iHasco can help

Our Employment Rights Act Training Bundle is designed to help employees and managers understand the key areas of employment law changing under the Employment Rights Act 2025, including sickness absence, harassment, whistleblowing, and probationary periods. This training does not, on its own, make an organisation legally compliant, but it supports informed conversations and prepares staff for new and updated employment rights.

Explore the Employment Rights Act Training Bundle

*Information is correct at time of distribution and subject to change.

author

Petra Martins

Senior HR Business Partner

View Petra's profile