On 18 December 2025, the Employment Rights Bill received Royal Assent to become the Employment Rights Act 2025.
The UK Government has hailed the 2025 Act as a “modern framework for worker’s rights”, describing it as providing “stronger protections and the fairness every worker deserves.”
The reforms introduced by the 2025 Act will be phased in over the next two years, and once fully in force, are expected to represent a significant enhancement to employment rights and protections across Scotland, England and Wales.
So, what should employees be aware of as these changes begin to take effect?
What laws have already changed?
Only a limited number of changes took effect immediately when the Act received Royal Assent. Specifically, the Government has already repealed several trade union measures it viewed as anti‑union, including the previous Government’s controversial Strikes (Minimum Service Levels) Act 2023, which had required minimum service levels to be maintained in key public services during strike action.
What is coming in 2026?
The reforms arriving this year are largely being introduced in two stages, in April and October 2026.
Changes planned for April 2026 include:
- Protection during Collective Redundancies – If an employer fails to carry out proper collective consultation in a collective redundancy situation, the maximum “protective award” will increase from 90 days’ pay to 180 days’ pay per employee.
- Day One Rights for Parents – Both Paternity Leave and Parental Leave will become available from your first day of employment, removing the current qualifying period.
- Access to Sick Pay – Eligibility will widen for Statutory Sick Pack (SSP) as there will no longer be an earnings threshold to qualify. The three “waiting days” for payment are also to be abolished, meaning SSP will be payable from day 1 of sickness.
- Creation of a Fair Work Agency – A new body will be created to ensure that employers comply with key employment rights – including holiday pay, SSP and minimum/living wage.
- Whistleblowing Protections – Whistleblower protections will be strengthened with disclosures relating to sexual harassment in the workplace gaining a specific category of protection.
- Simplified Union Procedures – Changes will be made to simplify union recognition and union ballots, further strengthening the position of unionised workforces.
Changes planned for October 2026 include:
- Greater protection against Sexual Harassment – Employers will be under a proactive duty to take “all reasonable steps” to prevent sexual harassment of their staff, representing an enhanced level of protection for the workforce.
- Safeguards against Third Party Harassment – Employees will be further protected by an obligation on employers that requires them not to permit harassment of staff by 3rd
- Fair access to Tips – Tip distribution laws are to be further strengthened for staff, with employers under a duty to consult with staff when creating or revising a tipping policy.
- Extended time to bring Tribunal claims – Those seeking to raise an Employment Tribunal claim will have 6 months (instead of the current 3 months) to raise a claim.
- Further Pro-Union Changes – Further pro-union reforms to legislation will include protection against detriment for participating in industrial action and an onus on employers to inform staff of their right to join a union.
Looking ahead to 2027
Although not on the immediate horizon, some particularly significant changes are proposed for 2027.
- Access to Unfair dismissal rights – The length of time that employees must work before being protected by unfair dismissal rules will be cut from 2 years to 6 months, significantly increasing the number of employees eligible to claim.
- Removed cap on compensation – The current cap on unfair dismissal compensation is also to be abolished, potentially increasing compensation for successful claims.
- Stricter limits for Fire and Re-Hire – Despite receiving negative press coverage in recent years, “fire and re-hire” can be a valid employment practice in certain limited circumstances. The 2025 Act will further limit the circumstances where the practice can be used, increasing the level of protection for employees. Dismissals following a failure by an employee to agree to a change in core contractual terms will only be justifiable if an employer is in severe financial distress with no reasonable alternative.
- Protections for Pregnant Employees – There will be significant new protections against dismissal for pregnant workers, building on existing enhanced rights.
- Increased rights for Zero-Hours & Low-Hours Employees – Zero and low hours workers will also be afforded enhanced rights – including offers of guaranteed hours, reasonable notice of shifts and compensation for cancelled/amended shifts.
- Employee-friendly changes will also be made in areas such as flexible working and bereavement leave.
What does this mean for you?
As noted above, these changes will not be immediate and will be phased in over the next 2 years. It will likely take additional time before the full effects become clear and before Tribunal decisions begin to interpret the new rules. What is certain is that, taken together, these reforms represent a substantial increase in workplace protections for individuals compared with the current position. As these reforms begin to take effect, it is important for individuals to understand their rights and stay informed in the workplace.
If you would like to discuss the Employment Rights Act 2025 further, please get in touch with a member of our team.
