While many provisions of the Employment Rights Act 2025 are now in force, a number of significant reforms are still due to be implemented throughout 2027.
Employers should use this period to review policies, contracts, procedures and training to ensure compliance.
What has already happened?
The following key changes are now in force:
- Day one rights to paternity leave and unpaid parental leave.
- Statutory Sick Pay is payable from the first day of absence and is available to lower-paid workers who were previously excluded.
- Increased collective redundancy protective awards.
- Strengthened whistleblowing protections in relation to disclosures concerning sexual harassment.
- Significant trade union and industrial action reforms, including enhanced protection from dismissal for participating in lawful industrial action.
- Trade unions can now conduct electronic ballots for industrial action.
- The limitation period for most Employment Tribunal claims has increased from three months to six months.
- Employers are now required to take all reasonable steps to prevent sexual harassment.
- Additional protections have been introduced for workers taking part in industrial action and for trade union representatives.
- Trade unions have enhanced rights of access to workplaces.
Changes still to come:
January 2027
- The qualifying period for ordinary unfair dismissal claims is expected to reduce from two years to six months.
- The statutory cap on unfair dismissal compensation is expected to be removed.
- Employers will be required to inform workers of their right to join a trade union.
- Reforms to fire and rehire practices are expected to significantly restrict an employer's ability to dismiss employees and re-engage them on less favourable terms, except in limited circumstances.
Later in 2027
- Workers on zero-hour contracts will have the right to guaranteed-hours, enhanced notice for shifts and compensation where shifts are cancelled or varied at short notice.