Employment Rights Act 2025
Key points ot the Employment Rights Act 2025
Employment Law Update
The Employment Rights Act 2025, which received Royal Assent in December 2025, brings the biggest shake-up to UK employment law in a decade, with major changes phased in during 2026 and 2027. Key updates include “day one” rights for paternity/sick pay in April 2026, a new six-month qualifying period for unfair dismissal (expected Jan 2027), restrictions on “fire and rehire,” and the creation of the Fair Work Agency.
Key 2026 Employment Law Changes (April 2026 Focus)
- Statutory Sick Pay (SSP): Becomes a “day one” right, removing the lower earnings limit.
- Paternity Leave: Becomes a “day one” right, removing the qualifying period.
- Parental Leave: Unpaid parental leave will be available from day one of employment.
- Fair Work Agency: Launch of a new body to enforce holiday pay, sick pay, and other rights.
- Collective Redundancy: The protective award for failing to consult on collective redundancies doubles from 90 to 180 days’ pay.
- Sexual Harassment: Employers have a strengthened legal duty to take proactive steps to prevent workplace harassment.
Upcoming Changes (2026-2027)
- Unfair Dismissal (Expected Jan 2027): The qualifying period for unfair dismissal will change from two years to a new six-month rule.
- “Fire and Rehire” Restrictions: New, strict limitations on firing employees and rehiring them on worse terms, allowed only in limited financial circumstances.
- Zero-Hours Contracts: Measures to end exploitative zero-hours contracts, including requirements for guaranteed hours.
Other Recent Developments
- Carer’s Leave: A new right to up to five days’ unpaid leave per year for carers.
- Redundancy Protection: Expanded protection against redundancy for pregnant employees and new parents.
- NDAs: Statutory limits on the enforceability of Non-Disclosure Agreements (NDAs) came into force on October 1, 2025.