The long-anticipated Employment Rights Bill became law as the Employment Rights Act 2025 (“the Act”) on 18 December 2025, marking one of the most significant overhauls of UK employment law in a generation.
According to ACAS and supporters of the Bill, the Act is designed to strengthen worker protections, improve fairness at work and modernise employment practices. Time shall tell. While many changes will be phased in over two years (2026 and 2027), employers should be preparing now and be aware of what is coming down the line.
We’ve put together a simple, practical summary of the key changes and, crucially, what employers need to do in response. So, are you getting ready?
| Change / Reform | What’s New | What Employers Need to Do |
| FEBRUARY 2026 | ||
| Strike & Trade Union Rules | Industrial action becomes easier: shorter notice, simple majority ballots, longer mandate, no picket supervisors. Minimum service level rules removed. | Update industrial action policies; train managers on new notice/ballot requirements; revise internal communications. |
| APRIL 2026 | ||
| Day-One Family Leave Rights | Paternity and ordinary parental leave become rights from the first day of employment (no qualifying service). | Update contracts, staff handbooks & HR systems; brief managers on new eligibility. |
| Statutory Sick Pay | SSP payable from day one of illness with no three-day waiting period; lower earnings limit removed. | Update payroll systems and absence policies; communicate changes to staff. |
| Collective Redundancy Penalties | Maximum protective award for consultation failures increases from 90 to 180 days’ pay. | Review redundancy policies and consultation procedures; train managers on compliance. |
| Whistleblowing: Sexual Harassment | Sexual harassment becomes a qualifying disclosure under whistleblowing law. | Strengthen reporting processes; train staff on rights and protections. |
| Gender Pay Gap & Menopause Action Plans (Voluntary from Apr 2026, Mandatory by 2027) | Employers encouraged (then required) to produce action plans. | Start voluntary planning now; integrate into equality, diversity and inclusion strategies. |
| Fair Work Agency | New enforcement body covering holiday pay, SSP and more. | Get ready for enforcement interactions; ensure record-keeping is robust. |
| OCTOBER 2026 | ||
| Harassment & Third-Party Liability | Employers must take all reasonable steps to prevent harassment by customers/clients and other third parties. | Update harassment policies; deliver preventative training; monitor environments. |
| Tipping Policies | Employers must consult on tipping policy and update it at least every 3 years. | Conduct consultation; publish and review tipping policy. |
| Tribunal Time Limits | Claim time limits extend from 3 to 6 months for all claims. (Timeline for this may slip due to recent government announcement) | Employers should speed up internal grievance responses; track deadlines. |
| Trade Union Access & Information Duties | Duty to inform workers of the right to join a union; new union rep rights (could come in as early as August 2026). | Build union communication into onboarding; revise time-off policies for reps. |
| 2027 ONWARDS | ||
| Unfair Dismissal Qualifying Period (date to be confirmed) | Reduced from 2 years to 6 months and cap removed from compensation award | Review probationary practices and dismissal documentation; train HR on risks in 2026!!! |
| ‘Fire & Rehire’ Ban | Dismissing then rehiring on worse terms becomes automatically unfair dismissal in most cases. | Avoid this practice; consult with employees and unions on change proposals. |
| Enhanced Pregnancy & Maternity Protection | Stronger dismissal protections for pregnant workers and new mothers. | Ensure policies reflect updated protections; audit practices. |
| Bereavement Leave | New statutory right to bereavement leave (details to be announced). | Draft policy so you are ready; communicate sensitively. |
| Zero-Hours Workers: Guaranteed Hours & Shift Rights | Right to a contract reflecting regular hours; compensation for cancelled shifts. | Identify affected workers; update contracts and rostering systems. |
| Flexible Working Changes | Employers must explain reasonable business reasons when rejecting requests. | Update flexible working policy; train managers on rationale documentation. |
| Umbrella Company Regulation | Umbrella firms fall within the definition of agencies. | If relevant, review engagements with umbrella arrangements. |
| Collective Redundancy | Consultation covers total organisational redundancies, not just individual sites. | Broaden redundancy tracking and consultation triggers. |
What This Means for Employers
While some changes are still more than a year away, the direction of travel is clear:
greater day-one rights, stronger enforcement and higher risks for poor processes.
It is important that you consider the changes upcoming and how you can start to prepare or change how you work in your business.
Key priorities for employers:
- Review contracts and handbooks – particularly around family leave, sickness, harassment and probation.
- Train managers early – many risks arise from inconsistent or poorly explained decisions.
- Strengthen onboarding and probation period management – review your current onboarding and probation process, assess where the pitfalls are and how to improve to capture poor performance early.
- Strengthen documentation – shorter qualifying periods and longer tribunal deadlines increase exposure.
- Rethink workforce strategies – especially around zero-hours contracts, redundancy planning and contractual changes.
If you’d like help auditing your current policies, training managers, or preparing for the 2026–2027 changes, now is the time to act, and here at View HR we can assist you. Please get in touch if you either would like to know more or require assistance. Please get in touch if you either would like to know more or require assistance.
