Legislation update: Employment Rights Act 2025

The Employment Rights Act 2025 officially became law on 18 December 2025, setting in motion sweeping changes to employment rights. 

The phased reforms grant new protections to individuals and redefine how companies manage their people, impacting employment fundamentals including parental leave, statutory sick pay, and zero-hours contracts. 

The government’s stage-by-stage rollout is already under way, with legislative updates scheduled throughout 2026 and 2027. To remain compliant, employers need to understand the changes and prepare their policies, contracts, and processes for expanded employee rights and stricter regulatory scrutiny. 

In this article, Opus’s HR experts outline what to expect from the UK’s reshaped employment landscape – and provide practical recommendations to ready your business. 

What’s changing and when ‍

February 2026‍

• Enhanced strike protections: Employees will be safeguarded against dismissal for participating in lawful industrial action, and the 12-week cap on bringing claims will be removed.
• Trade union changes: Notice of action will drop to 10 days, a simple majority will be sufficient for approval, mandates will last 12 months, and employers must notify staff of their union rights.

April 2026‍

• Fair Work Agency: The Department of Business and Trade will create the Fair Work Agency to oversee compliance with employment rights laws. 
• Redundancy and whistleblowing: Protective awards for failure to consult in collective redundancies will double, and sexual harassment will qualify as a protected whistleblowing disclosure.
• Day-one leave rights: Paternity leave and ordinary parental leave will become available from the first day of employment. Limits on taking paternity leave after shared parental leave will be lifted.
• Statutory Sick Pay: SSP will be payable from day one of absence, and the lower earnings threshold will be abolished.

October 2026‍

• Dismissal and re-engagement: ‘Fire and rehire’ on less favourable terms will be automatically deemed unfair.
• Harassment liability: Employers will be responsible for harassment by employees, clients, or customers unless they can show they took all reasonable steps to prevent it.
• Tribunal deadlines: The time limit for bringing employment tribunal claims will extend from three to six months.
• Public sector outsourcing: New measures will align terms and conditions for transferred employees.

January 2027‍

• Unfair dismissal reforms: The qualifying period will be reduced to six months for dismissals from 1 January 2027, and the cap on compensatory awards will be removed. There will also be stronger protections against dismissal and re-engagement.

During 2027‍

• Pregnancy, menopause, and family rights: Employers must introduce Gender Action Plans for equality and menopause support. Dismissal protections for pregnant employees and new mothers will be strengthened, and pregnancy loss will be added to statutory bereavement leave.
• Harassment protections: Regulations will clarify what constitutes ‘reasonable steps’ for employers to take to prevent sexual harassment. 
• Blacklisting: Legal protections against blacklisting will be extended.
• Industrial relations reform: The industrial relations framework will be updated, including electronic and workplace balloting for trade union recognition and derecognition.
• Umbrella companies: New regulatory measures will govern their operation.
• Collective redundancy: The collective consultation threshold in redundancy situations will apply across the organisation as a whole. 
• Flexible working: Flexible working rights will be extended. 
• Predictable work rights: Employees will have a right to guaranteed hours, along with rights to reasonable notice of shifts and compensation for short-notice cancellations.

How to prepare for the changes: A five-point plan 

The new regulations will trigger far-reaching changes for many businesses – but taking early action can reduce cost, minimise risk, and enhance your employer brand. These five key steps provide a strong starting point: 

• Revise your policies and contracts: Ensure employment contracts, handbooks, and procedures reflect updated rules on dismissal, statutory leave, sick pay, and harassment. Conduct a policy audit to pinpoint gaps and update your template documents before provisions take effect.
• Train your managers on new requirements: Provide practical guidance on handling industrial action, whistleblowing concerns, and new day-one entitlements. Spotlight real-world scenarios so managers understand legal risks and appropriate escalation routes.
• Strengthen union and consultation frameworks: Review your current collective consultation and trade union engagement processes. Confirm that timelines, notification requirements, and representative arrangements are aligned with the revised rules.
• Prepare your payroll and HR systems: To avoid compliance errors and payment delays, test your systems to ensure they can administer day-one sick pay, new leave rights, and updated compensation rules. 
• Communicate with your team: Create a clear communications plan to prepare staff for upcoming changes. Outline their rights, explain how to raise concerns, and share channels for feedback, questions, and support. 

Work with an experienced HR expert 

Opus’s HR consultants can guide you through the complexities of changing employment legislation. From policy design guidance to gap analysis and manager training, we’ll help you map your route to full compliance. 

To speak to an HR specialist in your sector, get in touch on 0330 043 4015 or email hello@opus-safety.co.uk.