UK Employment Rights Act 2025: Key Changes Employers and Employees Need to Know
The Employment Rights Act 2025 has now been approved, bringing in major reforms to UK employment law. These changes affect everything from unfair dismissal to sick pay, zero‑hours contracts, and workplace protections. Here’s a practical guide to the key updates and what they mean for employers and employees.
1. Stronger Protections Around Dismissal
- The qualifying period for unfair dismissal claims is reduced from two years to six months.
- The cap on compensation for unfair dismissal has been removed.
2. Day-One Rights and Family Leave
- Paternity and unpaid parental leave are now rights from day one of employment.
- A new statutory bereavement leave entitlement has been introduced.
3. Statutory Sick Pay Reforms
- SSP is payable from the first day of illness.
- More workers are eligible as the lower earnings threshold is removed.
4. Zero-Hours and Flexible Working Changes
- Workers on zero‑hours contracts have rights to guaranteed hours if regularly worked.
- Employers may need to give reasonable notice of shifts and compensate for last-minute changes.
5. Harassment and Workplace Protections
- Employers must take all reasonable steps to prevent sexual harassment.
- Stronger whistleblowing protections for harassment cases.
6. Industrial Relations and Trade Union Rights
- The Strikes (Minimum Service Levels) Act 2023 has been repealed.
- New rules encourage union access and membership rights.
7. Extended Tribunal Time Limits and Redundancy Changes
- Employment tribunal claim limits extended from three months to six months.
- Collective redundancy consultation rules expanded.
Implementation Timeline
Most provisions will be phased in between 2026 and 2027. Some changes, like repealing strike service levels, are already in effect, while rights such as reduced unfair dismissal qualifying periods will roll out later.
What This Means in Practice
For Employees:
- Earlier access to unfair dismissal claims and family leave.
- Broader access to sick pay and stronger shift protections.
For Employers:
- Update contracts, HR policies, and payroll systems to comply with new rights.
- Prepare for stronger legal obligations around dismissal, leave, and workplace protections.
For more details, see the official guidance from NHSE Employers and Tozers Solicitors. For more Business Related topics check CakeFlix Business Boot Camp.
