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

The Employment Rights Act 2025 received Royal Assent on 18 December 2025 and is being introduced in phases through to 2027. The April 2026 reforms and the six-month Employment Tribunal time limit (from 1 October 2026) are in force. The duty to take “all reasonable steps” to prevent sexual harassment, employer liability for third-party harassment and new trade union access rights follow on 30 October 2026. Unfair dismissal and fire and rehire reforms start in January 2027.

The Act affects every UK employer, whatever the size or sector. It covers statutory sick pay, unfair dismissal, harassment, zero-hours contracts, tipping, and trade union rights.

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

On this page:

• Key takeaways
• Key dates at a glance
• What is the Employment Rights Act 2025?
• Who is affected?
• What is already in force?
• Tribunal time limits
• Harassment duties from 30 October 2026
• Trade union rights
• Tipping rules
• Unfair dismissal
• Fire and rehire
• Zero-hours contracts
• Other 2027 changes
• Fair Work Agency
• Risks of non-compliance
• Courses updated for the Act
• What to do now
• FAQs
• How iHasco can help

Key takeaways

In force now

• Statutory Sick Pay (SSP) reform (6 April 2026): SSP is payable from day one of sickness absence, and the Lower Earnings Limit is removed.
• Day-one paternity and unpaid parental leave (6 April 2026): Employees can take these from their first day of employment.
• Whistleblowing protection for sexual harassment disclosures (6 April 2026): Sexual harassment is now a “qualifying disclosure” under whistleblowing law.
• Fair Work Agency (7 April 2026): The new enforcement body is up and running.
• Employment Tribunal time limit (1 October 2026): Extended from 3 months to 6 months for most claims.

Coming next: 30 October 2026

• Sexual harassment duty: Employers must take “all reasonable steps” to prevent sexual harassment, up from “reasonable steps”.
• Third-party harassment duty: Employers become liable for harassment of staff by customers, clients, contractors and other third parties unless they have taken all reasonable steps to prevent it.
• Trade union access rights: Unions gain stronger rights to request access to workplaces, and some union representatives gain new rights to facilities and time off.

By the end of 2026

• Tipping law: Employers must consult workers before setting or changing a tipping policy and review it at least every 3 years. The exact date is still to be confirmed.

January 2027 and beyond

• Unfair dismissal (1 January 2027): The qualifying period drops from 2 years to 6 months, and the compensation cap is removed.
• Duty to inform workers of their right to join a trade union (1 January 2027): Moved from October 2026. A standardised statement of union-related rights must be issued to all staff before 5 April each year.
• Fire and rehire (January 2027): Dismissing staff for refusing contract changes will be automatically unfair in almost all circumstances.
• Zero-hours and agency worker rights (2027, date to be confirmed): Guaranteed hours, shift notice and compensation for cancelled shifts.

Key dates at a glance

Dates are taken from the government’s Employment Rights Act 2025 implementation roadmap and Acas guidance.

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, mostly in 6 April and October, with further dates running through to 2027.

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

The Act applies in Great Britain. Northern Ireland is not generally covered, although the SSP changes and the Fair Work Agency apply UK-wide.

Who is affected by the Employment Rights Act 2025?

Every employer in Great Britain is affected by the Employment Rights Act 2025, whatever the size or sector. Some provisions apply to everyone, such as the SSP changes and the longer Employment Tribunal time limit. Others apply more narrowly:

• Hospitality employers are directly affected by the tipping policy consultation and review rules.
• Large employers (250 or more staff) are the focus of the gender pay gap and menopause action plans, which are voluntary now and expected to become mandatory in 2027.
• Employers using zero-hours or agency workers face new obligations on guaranteed hours and shift notice from 2027.
• Employers with customer-facing roles face liability for third-party harassment from 30 October 2026.
• Social care employers are affected by the new Adult Social Care Negotiating Body, which will bring sector-wide negotiation on pay and conditions.
• Schools and academy trusts are affected by the School Support Staff Negotiating Body, which covers support staff pay and conditions.
• Some trade union measures, such as access requests, will mainly matter in workplaces that already have union members or a recognised union.

Which Employment Rights Act 2025 changes are already in force?

Several Employment Rights Act 2025 changes are already in force, most of them since 6 April 2026.

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

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

Example: An employee who 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 current rules, that employee is entitled to SSP for that day.

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

From 6 April 2026, paternity leave and unpaid parental leave are available from the first day of employment, with no minimum service. Employees can also take paternity leave after shared parental leave, which was previously restricted. A new bereaved partner’s paternity leave right also began, allowing up to 52 weeks of leave if the mother or primary adopter dies within the first year of the child’s life.

What other changes started in April 2026?

• Whistleblowing: Sexual harassment became a “qualifying disclosure” under whistleblowing law, so workers who report it get the same protection from detriment and unfair dismissal as other whistleblowers.
• Collective redundancy: The maximum protective award for failing to consult collectively doubled from 90 to 180 days’ pay.
• Holiday records: Employers must keep records of annual leave and holiday pay for at least 6 years.
• Action plans: Employers of all sizes can voluntarily publish gender pay gap and menopause action plans.
• Trade union recognition: The process for a union to gain recognition was simplified.

Trade union balloting changes also followed, with electronic and workplace voting available from 25 August 2026.

How long do employees have to bring an Employment Tribunal claim now?

Since 1 October 2026, the time limit for bringing most Employment Tribunal claims is 6 months, up from 3 months. The longer limit applies to problems that arose on or after 1 October 2026. For earlier incidents, the 3-month limit can still apply.

Example: An employee dismissed on 15 October 2026 has 6 months from that date to start a claim. Before 1 October, the same employee would have had 3 months.

A longer limit gives workers more time to take advice, and it keeps an employer exposed to legal risk for longer after a dismissal or workplace incident. Records of performance, conduct and absence conversations need to be kept and kept accessible for longer too.

What are the new harassment duties from 30 October 2026?

Two harassment changes take effect on 30 October 2026, and both raise the legal bar for employers.

The sexual harassment duty rises to “all reasonable steps”. Employers already must take “reasonable steps” to prevent sexual harassment of their workers under the Worker Protection Act 2023. From 30 October 2026 the standard becomes “all reasonable steps”. The same date brings a power for the government to make regulations setting out specific steps employers must take. Those regulations are unlikely before 2027 or 2028, and they will add to the wider “all reasonable steps” test rather than replace it.

Employers become liable for third-party harassment. A third party is anyone who is not an employee, including customers, clients, suppliers, contractors and members of the public. From 30 October 2026, employers are liable if a third party harasses a member of staff, unless the employer can show it took all reasonable steps to prevent it. The duty covers every form of harassment in the Equality Act 2010, not just sexual harassment.

Compensation can rise. In sexual harassment claims, a tribunal can increase compensation by up to 25% where the employer cannot show it took all reasonable steps to prevent the harassment.

What counts as “all reasonable steps”?

A tribunal decides what counts as “all reasonable steps” case by case. The Equality and Human Rights Commission (EHRC) published guidance in September 2024 on preventing sexual harassment, and its principles apply to all types of harassment. It points employers towards:

• A risk assessment covering harassment by staff and by third parties
• Clear anti-harassment policies that every worker can access
• Regular training for all workers, plus extra training for managers
• Clear ways to report concerns, formally and informally
• Prompt, impartial handling of complaints
• Monitoring of complaint trends and regular review of how well the measures work

In the 2021 Employment Appeal Tribunal case Gehlen v Allay (UK), the employer had run harassment training in early 2015, and an employee complained about racist remarks in August 2017. The tribunal found the training was “stale” and the Employment Appeal Tribunal upheld that finding, so the employer was held liable. Training needs refreshing, and records of completion need keeping.

What trade union rights are changing from 30 October 2026?

From 30 October 2026, trade unions gain stronger rights to access workplaces, and some union representatives gain new rights to facilities and time off for union duties. Acas notes that how these changes work in practice depends on the government’s Codes of Practice and regulations, which need Parliamentary approval.

Under the access process, a union makes a written request in a prescribed format. The employer has 15 working days to respond, then both sides try to agree terms. Voluntary access agreements can still be used, and Acas can help broker them. If they cannot agree, either side can apply to the Central Arbitration Committee (CAC). The CAC starts from a presumption that access should be granted, so the live question is usually on what terms. Access should take place at the normal place of work, in normal working hours, without unduly disrupting the business. The CAC can impose penalties if an employer ignores an order.

Employers should nominate one person to handle access requests and decide in advance what they could agree to and where their limits lie. This will only apply to employers with 21 or more workers.

When does the duty to inform workers about trade union rights start?

The duty to tell workers about their right to join a trade union now starts on 1 January 2027, not in October 2026. From that date, employers must give workers a written statement of this right, at the start of employment and periodically afterwards.

Employers must give workers a written statement of their right to join a trade union, and this is now an annual duty. The first statement must be issued before 5 April 2027, and then before 5 April each following year. The government will publish a model statement as part of the regulations, due in November.

What are the new tipping rules for employers?

Stronger tipping rules are expected by the end of 2026, and the exact date has not been confirmed. Under the new rules, employers must:

• Consult workers, or their trade union or worker representatives, before creating or changing a tipping policy
• Share an anonymised summary of the consultation feedback with affected workers
• Review and update the written tipping policy at least every 3 years

The rules apply most directly to hospitality and other sectors where tipping is common.

How is the unfair dismissal qualifying period changing from 1 January 2027?

For dismissals from 1 January 2027, employees need 6 months’ service to bring an unfair dismissal claim, down from 2 years. The cap on unfair dismissal compensation is removed from the same date.

In practice, anyone who started work on or before 1 July 2026 will have 6 months’ service on 1 January 2027.

Example: An employee starting on 1 February 2027 reaches 6 months’ service and acquires unfair dismissal rights on 1 August 2027, rather than waiting until 1 February 2029 under the old 2-year rule. A dismissal after that point needs a fair reason and a fair process.

Notice counts towards service. Where an employee is dismissed with pay in lieu of notice, the statutory notice period of one week is added to their length of service. An employee dismissed on the last day before the 6-month point can therefore still qualify to claim.

This makes probation periods, documented performance conversations and consistent management practice much more important. Many employers are considering a 4-month probation as a default, which leaves room to extend it before the 6-month point if concerns come up. Any extension should be confirmed in writing, with the reasons, the improvements required and the length of the extension.

Employees with under 6 months’ service are not unprotected. Claims for discrimination, whistleblowing, raising health and safety concerns and asserting statutory rights already need no minimum service.

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 1 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 January 2027, dismissing an employee for refusing to agree to changes to their contract will usually be treated as automatically unfair dismissal. The same applies to dismissing and rehiring someone, or a replacement, on substantially the same duties under different terms. This was originally due in October 2026 and has been moved to January 2027, in line with the unfair dismissal changes.

There is one narrow defence. The employer must show that the change was needed to deal with severe financial difficulties threatening the business, and that there was no reasonable alternative. A tribunal will still look at the consultation and other steps taken. An updated Code of Practice is expected in 2027.

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

Zero-hours and agency workers will get three new rights in 2027, but the commencement date has not been confirmed. A government consultation on the detail closed on 25 August 2026, and the government’s response is still awaited.

The three rights are:

• Guaranteed hours: Workers who regularly work a set pattern of hours over a reference period must be offered a guaranteed-hours contract. The government’s preferred reference period was 12 weeks. Workers can decline the offer, and seasonal or genuinely temporary demand is expected to be a valid reason to offer only a short-term contract.
• Reasonable notice of shifts: The consultation asked for views on notice of between 1 and 4 weeks.
• Compensation for short-notice changes: Workers will be paid when a shift is cancelled, moved or shortened at short notice. The consultation asked whether “short notice” should mean between 1 and 7 days.

For agency workers, the end-hirer will be responsible for offering guaranteed hours.

What other changes are due in 2027?

Acas lists several further changes for 2027, with dates still to be announced:

• Flexible working: Employers refusing a request must give a business reason from a list of 8 and explain why the refusal is reasonable.
• Mandatory action plans: Gender pay gap and menopause action plans become compulsory for employers with 250 or more workers.
• Bereavement leave: A new right to unpaid statutory bereavement leave.
• Pregnancy and maternity: Stronger protection from dismissal for pregnant workers and those returning from maternity leave.
• Non-disclosure agreements: Clauses that stop workers disclosing harassment or discrimination will be void.
• Collective redundancy: Employers will need to count redundancies across the whole organisation, not only at one workplace.
• Umbrella companies: New regulation of umbrella companies.

What is the Fair Work Agency?

The Fair Work Agency is a new single enforcement body, established on 7 April 2026. It oversees compliance with the National Minimum Wage, Statutory Sick Pay, holiday pay, employment agency standards and serious labour exploitation. It can 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 face several risks:

• Employment Tribunal claims, with a 6-month time limit already in place and no compensation cap on unfair dismissal claims from 1 January 2027
• Higher harassment awards, with tribunals able to add up to 25% in sexual harassment cases from 30 October 2026
• 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
• Financial and reputational cost, including legal fees, management time and settlement costs where a claim goes to a final hearing

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

iHasco courses are reviewed and updated on an ongoing basis to reflect current legislation, and we check our library against the Employment Rights Act 2025 as each implementation date is confirmed. Our Sexual Harassment Awareness course has already been updated, and we continue to review the rest of our HR compliance courses as the remaining changes come into force.

What should employers do now to prepare?

Before 30 October 2026

• Carry out a harassment risk assessment that covers third parties such as customers, clients and contractors
• Review anti-harassment policies, and share them with suppliers, contractors and agencies who work with your staff
• Refresh harassment training for all workers, and give managers extra training on handling complaints
• Set up clear reporting routes, including anonymous options, and record your reasons if you decide a step is not reasonable
• Nominate one person to handle trade union access requests, and agree your position in advance

Before the end of 2026

• Draft or review your tipping policy and consultation process, if you take tips

Before 1 January 2027

• Review probation periods and induction. Many employers are moving to a 4-month probation to leave room to extend
• Train managers to hold regular probation reviews and document them
• Check contracts and change processes for any plans that could amount to fire and rehire

Before 5 April 2027

• Prepare a written statement of the right to join a trade union for new starters and existing staff – a model statement is due in November

Throughout

• Keep sickness absence policies and manager guidance aligned with day-one SSP
• Record performance, conduct and absence conversations consistently, and keep those records for longer, given the 6-month tribunal time limit
• Review how you use zero-hours and agency workers, and note where people work regular hours
• 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 December 2025 through to 2027. As of 26 October 2026, the April 2026 changes and the 6-month tribunal time limit are in force, and the next confirmed date is 30 October 2026.

Does the Employment Rights Act 2025 apply to small businesses?

Yes. The Employment Rights Act 2025 applies to employers in Great Britain regardless of size. Some provisions have size thresholds: mandatory gender pay gap and menopause action plans will apply to employers with 250 or more workers.

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, supplier or member of the public. From 30 October 2026, employers are liable for this unless they can show they took all reasonable steps to prevent it. The duty covers all forms of harassment under the Equality Act 2010.

How long do employees have to bring an Employment Tribunal claim?

Employees have 6 months to bring most Employment Tribunal claims arising from 1 October 2026 onwards. The previous limit was 3 months, and it can still apply to problems that began before 1 October 2026.

Can I dismiss someone without a process if they have under 6 months’ service?

No. From 1 January 2027, employees with 6 months’ service can claim unfair dismissal. Even before that point, an employee can claim from day one for discrimination, whistleblowing, raising health and safety concerns and asserting certain statutory rights. A fair, documented process protects you against these claims.

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

No. From 1 January 2027, the 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, a health and safety risk or a breach of a legal obligation. Since 6 April 2026, sexual harassment is included as a qualifying disclosure.

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 management time, disruption and any settlement or award.

How iHasco can help

Our Employment Rights Act Training Bundle helps 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. 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.

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*Information is correct as of 26th October 2026 and subject to change.

Related reading

• The Worker Protection Act 2023: what employers need to know
• Whistleblowing training for UK employers
• Sexual Harassment Awareness training
• Probationary Periods training