Legislation update: Employment Rights Act 2025

What's changing and when

The Employment Rights Act 2025 represents the most significant overhaul of UK employment law in a generation. The Act introduces a range of new rights and protections for workers, with changes being phased in from April 2026 through to 2027.

Below, we summarise the key changes and the dates by which employers need to be prepared.

Day-one unfair dismissal rights (from April 2026)

Currently, employees must have two years of continuous service before they can bring an unfair dismissal claim. The Employment Rights Act 2025 removes this qualifying period, giving employees the right to claim unfair dismissal from their first day of employment.

A new statutory probation period of nine months will be introduced, during which a lighter-touch dismissal process will apply. However, employers will still need to follow a fair procedure and have a legitimate reason for dismissal during the probation period.

This change will have significant implications for recruitment, onboarding, and performance management processes. Employers should review their contracts of employment, probation policies, and dismissal procedures before April 2026.

Flexible working as the default (from April 2026)

The right to request flexible working became a day-one right in April 2024. The Employment Rights Act 2025 goes further, making flexible working the default position for all employees. Employers will only be able to refuse a flexible working request if it is not reasonably practicable to accommodate it.

Employers should review their flexible working policies and ensure that line managers are trained to consider flexible working requests fairly and consistently.

Zero-hours contracts (from 2026/27)

The Act introduces new rights for workers on zero-hours contracts, including the right to a guaranteed hours contract after a reference period (expected to be 12 weeks). Workers will be able to opt to remain on a zero-hours contract if they prefer the flexibility.

Employers who rely on zero-hours workers should begin reviewing their workforce planning and contracts now, in anticipation of these changes.

Strengthened redundancy and TUPE protections (from April 2026)

The Act strengthens collective redundancy consultation requirements, including extending the duty to consult where redundancies are proposed across multiple sites. TUPE protections are also enhanced, making it harder for employers to harmonise terms and conditions following a transfer.

Statutory sick pay (from April 2026)

The waiting period for statutory sick pay (SSP) is being removed, meaning employees will be entitled to SSP from their first day of absence (rather than the fourth, as is currently the case). The lower earnings limit for SSP eligibility is also being removed.

Employers should review their sick pay policies and absence management procedures in light of these changes.

Next steps

The Employment Rights Act 2025 requires employers to take a proactive approach to reviewing and updating their HR policies, employment contracts, and management practices. Our HR consultants are here to support you through these changes. Get in touch today to arrange a review of your employment documentation and practices.