Employment Rights Act 2025 – What Employers Need to Know Now
On 18 December 2025, the UK’s Employment Rights Bill received Royal Assent and became law as the Employment Rights Act 2025, marking one of the most significant overhauls of UK employment legislation in decades.
This legislation is being rolled out in phases between 2026 and 2027, with changes that will affect nearly every UK employer and already we’ve seen some changes taken place.
As accountants we often refer clients to specialists in employment law and all of our clients have access to Vantage Tax’s employment and HR helplines, free of charge.
Why the Law Is Changing
The Government’s aim with the Employment Rights Act is to:
- Improve fairness and job security for workers
- Modernise workplace rights to reflect current employment practices
- Support workplace wellbeing while striving to maintain productivity and economic growth.
Organisations such as ACAS have welcomed the reforms, emphasising that clearer and stronger rights can help build better workplace relations and stronger businesses.
Key Changes and When They Take Effect
Already in Force
Strike law reform
- Minimum service level rules for strikes have been removed (December 2025).
February 2026: Industrial Action and Trade Union Rules
- Dismissals related to industrial action will be automatically unfair with no 12-week time limit.
- Unions only require a simple majority for ballots.
- Notice for industrial action reduces from 14 to 10 days.
- Strike mandates last 12 months instead of 6.
- Picket supervisors are no longer required.
💡 Action: Review your policies on industrial action and trade union recognition; ensure HR teams are briefed on updated processes.
April 2026: Major Workers’ Rights Reforms
Parental Rights
- Paternity leave and ordinary parental leave become “day one” rights. No more 26 weeks qualifying service.
Statutory Sick Pay (SSP)
- SSP is paid from the first day of sickness.
- The lower earnings threshold is removed, so more workers qualify.
Whistleblowing and Harassment
- Sexual harassment will be a qualifying disclosure under whistleblowing law.
Collective Redundancy
- The maximum protective award for failure to consult rises from 90 to 180 days’ pay.
Trade Union Recognition
- Processes to gain recognition will be simplified (including electronic voting).
Employer Support
- The new Fair Work Agency will be established to enforce employment standards.
💡 Action:
✔ Update SSP payroll processes.
✔ Review parental leave and whistleblowing policies.
✔ Start planning gender pay gap and menopause action plans (voluntary from April; mandatory in 2027).
October 2026: Harassment, Dismissal and Tribunal Rules
- Fire and rehire without proper process becomes automatically unfair.
- Employers must take all reasonable steps to prevent harassment, including from third parties.
- Employment tribunal claim limits increase from 3 to 6 months.
- Stronger protections against detriment for taking industrial action.
- New duties around tipping policies and union information rights.
💡 Action: Review policies on dismissal, harassment and tribunal processes; train managers on the expanded harassment duties.
December 2026: Mandatory Seafarers charter
- A new mandatory charter for seafarers to provide better standards.
2027 and Beyond: Expanded Worker Protections
- Unfair dismissal rights after 6 months’ service (previously 2 years).
- Guaranteed hours for zero-hours workers if requested.
- Shift cancellation payments for some workers.
- Flexible working rights and enhanced protections for pregnant and maternity workers.
- Mandatory menopause and gender pay gap action plans.
- Statutory Bereavement leave (more information TBC on if this will be paid or unpaid)
💡 Action: Start reviewing contracts, flexible working and zero-hours roles to prepare for consulting and contract adjustments.
What Employers Should Start Doing Now
Review Your Policies
Review:
- SSP procedures and payroll systems
- Parental leave, whistleblowing and harassment policies
- Flexible working and zero-hours contracts
👉 Ensure they will comply once changes take effect.
Update HR Practice and Training
Train managers on:
- New dismissal and disciplinary thresholds
- Harassment prevention obligations
- Union engagement and industrial action protocol
Communicate With Employees
Clear communication builds trust and avoids disputes. Consider:
- An internal briefing on how rights are changing
- Updated employee handbooks and template
Seek Professional Advice
Some changes, particularly on dismissal rights, SSP eligibility and harassment duties, will significantly impact risk and compliance. Legal expertise will be essential.
How JP Blackmoor can help
JP Blackmoor is here to support you with practical guidance and tailored compliance planning and can refer you to specialist HR and legal teams.
The Employment Rights Act 2025 represents a major shift in UK employment law, expanding worker protections and imposing new obligations on employers. With reforms happening throughout 2026 and 2027, now is the time to prepare, not react.
JP Blackmoor can help you navigate these changes confidently.
Contact us for a discussion over your payroll services
