The Employment Rights Act 2025 is reshaping UK workplaces — and the first changes land in just weeks.

The Employment Rights Act 2025 Is Here. Are Employers Really Ready?

The Employment Rights Act 2025 (ERA) is not just another compliance update — it’s the biggest shake-up of UK employment law in a generation.

With Royal Assent granted on 18 December 2025, the first wave of reforms lands as early as February and April 2026, with further changes rolling out through 2027. While the Government is still working to the timetable in its July 2025 Roadmap, one thing is clear: employers who wait will be playing catch-up.

So what should employers be doing right now? Here’s a practical, forward-looking guide — and some questions worth debating.

1. Build Your ERA 2026–27 Implementation Plan Now

This is not a “wait and see” Act. The ERA touches almost every corner of the employment relationship — from trade unions and dismissal rights to sick pay and parental leave.

Effective employers are:

• Mapping every ERA measure against current policies, contracts, systems and training

• Identifying gaps early (especially in payroll, employee relations and governance)

• Tracking consultations and commencement regulations closely

💬 HR Discussion point: Do you have a single, organisation-wide ERA roadmap — or are changes being handled in silos?

2. Prepare for a New Trade Union Landscape (From February 2026)

Trade union rights are being significantly strengthened, including:

• Simplified industrial action ballots

• Shorter notice periods

• Stronger dismissal protections during industrial action

• Electronic workplace balloting and easier statutory recognition

• A new statutory right of access to workplaces (from October 2026)

For employers without recognised unions, the bar for compulsory recognition is lowering — and voluntary recognition may soon look like the more controlled option.

What HR teams should be doing now:

• Reviewing employee relations strategies

• Preparing for union access and mandatory statements of trade union rights

• Stress-testing industrial action contingency plans

• Exploring alternative employee engagement structures where unions aren’t recognised

💬 HR Discussion point: Will these changes improve trust and dialogue — or increase workplace tension?

3. Day One Family Leave Rights (April 2026)

From April 2026:

• Paternity leave and unpaid parental leave become day one rights

• The restriction on taking paternity leave after shared parental leave is removed

• Statutory paternity pay rules remain unchanged (26 weeks’ service required)

With a wider parental leave review underway, this is unlikely to be the last change.

Key actions:

• Update family-friendly policies

• Train managers on handling requests fairly and consistently

• Plan resourcing and cover more proactively

💬 HR Discussion point:Are line managers equipped to manage greater flexibility without bias?

4. Statutory Sick Pay Reform (April 2026)

SSP is getting more expensive — and more complex:

• Payable from day one

• Lower earnings limit removed

• Payable at the lower of the flat rate or 80% of weekly earnings

HR and payroll priorities:

• System updates to reflect day one eligibility

• Policy changes

• Monitoring and managing absence patterns carefully

💬 HR Discussion point: Will SSP reform improve wellbeing — or increase short-term absence pressures?

5. Budget for Statutory Pay & Minimum Wage Increases (April 2026)

As usual, April brings:

• Uprated SSP and family leave pay

• National Minimum Wage increases

But combined with other ERA costs, the cumulative impact could be significant.

💬 HR Discussion point: Are these increases already built into your 2026 workforce planning?

6. Collective Redundancy: Higher Stakes, Higher Risk (April 2026)

The maximum protective award for failure to consult will double:

• From 90 days’ pay to 180 days’ pay per affected employee

Later in 2026, a new employer-wide redundancy threshold will apply — not just per establishment.

What needs tightening now:

• Senior leader understanding of consultation triggers

• HR1 notification governance

• Documentation, timelines and audit trails

💬 Discussion point:Do your leaders truly understand what counts as “redundancy” under consultation rules?

7. Stronger Harassment Prevention — Including Third Parties (Expected October 2026)

The ERA raises the bar again:

• A reinforced duty to take “all reasonable steps” to prevent sexual harassment

• New employer liability for third-party harassment

• Sexual harassment disclosures added to whistleblowing protections (April 2026)

Practical steps:

• Conduct harassment risk audits (especially customer-facing roles)

• Refresh policies and training

• Keep evidence — because proof will matter

💬 Discussion point:Could you confidently evidence “all reasonable steps” if challenged tomorrow?

8. Fire and Rehire: Almost Gone (Expected October 2026)

Dismissals linked to refusing contractual changes will become automatically unfair, except in extreme financial distress.

Employers will need to show:

• Severe financial hardship

• Unavoidable necessity

• Full compliance with consultation obligations

What to consider now:

• Whether contractual changes need to happen before restrictions apply

• Reviewing contracts to build in flexibility

• Updating risk assessments for change programmes

💬 HR Discussion point:Is “fire and rehire” ever justified — or is this a long-overdue reform?

9. Unfair Dismissal: The Clock Is Ticking (January 2027)

From 1 January 2027:

• Qualifying period drops from 2 years to 6 months

• Compensation cap removed

This applies to anyone with six months’ service by that date — including employees hired before July 2026.

Employers should act in early 2026:

• Standardise probation reviews

• Train managers on early intervention

• Rethink exit and settlement strategies for senior staff

💬 HR Discussion point:Are your probation processes robust enough to stand up in tribunal?

10. Zero Hours & Guaranteed Hours Rights (Expected 2027)

Casual and zero-hours workers will gain the right to:

• A guaranteed hours contract based on actual working patterns

• Reasonable notice of shifts

• Compensation for late cancellations

While details are still under consultation, high-volume casual employers should start auditing now.

💬 HR Discussion point:Will this finally end insecure work — or reduce flexibility for both sides?

Final Thought

The ERA 2025 isn’t just about legal risk — it’s about how employers manage trust, fairness and flexibility in a rapidly changing workforce.

Those who prepare early won’t just comply — they’ll compete better for talent.

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