What to Expect in the Coming Months: The Employment Rights Act 2025
The Employment Rights Act 2025 represents the most significant reform of UK employment law in decades. Its phased implementation began in February 2026 and will continue through 2026, with the final changes expected in early 2027. The Act introduces wide-ranging updates across worker protections, family leave, statutory sick pay, whistleblowing, redundancy, and trade union rights.
February 2026 – Industrial Action and Trade Union Reform
Key changes include:
• Extending the validity of industrial action mandates from 6 months to 12 months.
• Reducing the notice period for industrial action from 14 days to 10 days.
• Removing restrictions on picketing, including limits on supervisors.
• Automatically deeming dismissal for participating in lawful industrial action as unfair, removing the previous 12-week protection limit.
April 2026 – Family Leave Reforms
Family leave provisions are updated as follows:
• Paternity leave is now a day -one right, with no 26 -week service requirement. Leave can also be taken following shared parental leave.
• Unpaid parental leave is introduced for all eligible employees.
• Bereaved parents are entitled to up to 52 weeks’ unpaid statutory leave if the mother, primary carer, or adopter dies within the first year of the child’s birth or adoption.
• Statutory pay for maternity, paternity, adoption, bereavement, and neonatal care leave increases to £194.32 per week or 90% of weekly earnings.
Statutory Sick Pay (SSP) Amendments
• SSP is payable from the first day of absence (previously the fourth day).
• The rate increases from £118.75 to £123.25 per week.
• All employees, regardless of earnings, are entitled to SSP at 80% of weekly earnings or the flat rate, whichever is higher.
Whistleblowing Protections
• Sexual harassment is added as a protected category for whistleblowers, strengthening protection against unfair dismissal for those reporting harassment.
Redundancy Changes
• Where an employer fails to collectively consult employees during 20 or more redundancies within 90 days, affected employees can now claim 180 days’ pay (up from 90).
Trade Union Reforms (Phased Implementation)
• A simplified statutory recognition process makes it easier for unions to gain legal recognition.
• Electronic and workplace balloting is introduced, with members able to vote electronically where agreed.
• The requirement for a 50% turnout in industrial action ballots may be removed.
• A Code of Practice on trade union recognition is expected in October 2026.
• Additional trade union amendments, protections against detriment for industrial action, and public sector reforms are anticipated from October 2026 onwards.
October 2026 – Workplace Harassment and Tribunal Changes
• Employers will be liable for harassment from third parties and must take “all reasonable steps” to prevent it.
• Employment tribunal time limits will increase to six months for most claims.
• Further changes include tipping, additional trade union regulations, and new public sector protections.
January 2027 – Unfair Dismissal Reforms
• The qualifying period for unfair dismissal claims is reduced from two years to six months.
• Employment tribunals can award unlimited compensation, removing the previous cap of £118,223.
• Employees will have the right to receive written reasons for dismissal after six months’ service.
• “Fire and rehire” practices will automatically be deemed unfair dismissal.
Other Changes in 2027
The Act will also introduce enhancements to:
• Pregnancy and maternity rights
• Bereavement leave
• Rights for zero-hour contract workers
• Compensation for cancelled shifts and reasonable notice of shifts
• Flexible working arrangements
• Menopause support and gender pay gap action plans
• Collective redundancy procedures
• Regulation of umbrella companies
Conclusion
The Employment Rights Act 2025 represents a major step forward in modernising UK employment law. By strengthening employee protections, clarifying employer obligations, and addressing structural imbalances in the workplace, the Act provides greater legal certainty for both employees and employers.
This article is provided for general information purposes and should not be relied upon as legal advice.