The Employment Rights Act 2025 received Royal Assent on 18th December 2025, marking a major moment in the UK’s overhaul of worker protections. The Act introduces 28 wide-ranging reforms that will reshape the relationship between employers and employees.
Although the Act is now law, the rollout is being phased in, with key changes taking effect throughout 2026 and 2027. For employers, understanding this timeline is essential to know what to expect and how to prepare.
In this blog, we’ll break down the key reforms to help you stay ahead and understand how these changes will impact the daily workforce.
Why Was It Introduced?
The Employment Rights Act 2025 was introduced to modernise UK employment law – specifically the Employment Rights Act 1996 – and better reflect the realities of today’s workforce. The government says these changes aim to strengthen job security, improve working conditions and enhance fairness across the workplace.
Key Changes to Employment Rights Act
Statutory Sick Pay
From April 2026, Statutory Sick Pay (SSP) rules will become more generous, having a greater focus on public health and worker welfare.
Statutory Sick Pay will be payable from the first day of illness, removing the previous three-day waiting period. Also, the lower earnings limit will be removed, meaning that almost all part-time and lower-paid staff will be eligible for sick pay immediately.
This represents a direct cost increase for employers with a large part-time workforce.
Parental Leave
The Act strengthens the safety net for parents and carers, with changes rolling out between April 2026 and 2027.
From April 2026, both paternity leave and unpaid parental leave will become ‘day-one’ rights, removing the current service requirements. Better flexibility is also introduced, allowing parents to take paternity leave after shared parental leave – this is something that was previously restricted.
From 18th February 2026, newly eligible employees can begin to submit notice of their intention to take leave from 6th April 2026, without needing 26 weeks of service to qualify. Also, the notice period for paternity leave has been temporarily reduced from 15 weeks to 28 days.
Other additions to the Act are protections against redundancy and dismissal for pregnant employees and new mothers, which are also significantly strengthened.
A new bereavement leave will also be introduced in 2027, acknowledging the need for time off during personal tragedy.
Fair Work Agency
The Fair Work Agency will be established on 7th April 2026. This helps bring together existing enforcement bodies and take on the enforcement of other employment rights, such as holiday pay and statutory sick pay.
It marks a substantial step towards a more coordinated and proactive approach to enforcement, with the aim of improving compliance and ensuring workers receive their full legal entitlements.
Unfair Dismissal
Changes to Unfair Dismissal are expected to come into force on 1 January 2027.
Under the new rules, protection from unfair dismissal will become a right after 6 months’ service at the current job. Currently, employees must have 2 years of continuous service before they are eligible to claim for unfair dismissal.
These changes are major, encouraging employers to use 2026 as a lead-in period to strengthen recruitment practices, review and define probationary periods and put processes in place for managing the expiry of fixed-term contracts.
As a result of this change, the early stages of employment will be more important than ever for employers.
Fire & Rehire
Restrictions on ‘Fire and Rehire’ are expected to take effect from 1 January 2027.
The practice of dismissing employees and re-engaging them on less favourable terms and conditions faces strict new controls and, in most cases, will be automatically treated as unfair dismissal.
These changes will cause a significant shift in how contractual changes can be implemented moving forward. Employers should be thinking about this now by reviewing and ensuring any changes are managed fairly.
Zero-hour Contracts
Changes to zero-hour contracts are expected to take effect in 2027.
Workers on zero-hour or low-hour contracts will gain the right to a contract with guaranteed hours if they work regular hours over a specific 12-week reference period. They will also be entitled to compensation for any cancelled shifts, rescheduled shifts, or shifts cut short by an employer.
Employers will also be required to provide reasonable notice of shifts and any changes to working shifts.
How Premier Legal Can Help
The transition to the Employment Rights Act 2025 demands immediate strategic thinking.
From updating policies to staff training and awareness, taking proactive steps now is vital. While many of these changes are being introduced gradually, early preparation is key to ensure compliance and avoid potential legal and financial risks.
As specialist employment law solicitors who provide expert legal advice and HR support, we are here to help employers prepare for and comply with the Employment Rights Act 2025. Our services include reviewing contracts and policies, providing ongoing HR and legal guidance, delivering training, and supporting fair dismissal and disciplinary processes to minimise legal risk.
Premier Legal is here to help you every step of the way. Contact us today to find out how we can help your business navigate these changes confidently.
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Author
sarahrobinson@premier-legal.co.uk
Sarah Robinson is the Managing Partner and has specialised exclusively in employment law since qualifying as a solicitor in 1996.
Sarah has considerable experience of representing clients in many different industry sectors including insurance and financial services, corporate finance, technology, legal services, automotive, hotel and catering and media as well as the public sector.
Areas of particular interest include restrictive covenants, TUPE and advising in relation to discrimination.