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Employment Rights Act hub

The Employment Rights Act (the Act) is the most significant change to UK employment law in decades, introducing a number of major reforms as part of Labour's flagship 'Plan to Make Work Pay' agenda. 

The Act reshapes worker protections across England, Scotland and Wales, delivering key manifesto promises to strengthen worker security, tackle exploitative practices, and modernise workplace rights.

For UK employers and HR professionals, this legislation necessitates a review of employment practices across all sectors. Covering key areas such as unfair dismissal rights, collective redundancies, trade union regulations, non-disclosure agreements, and protection from workplace harassment, the Act will require all organisations to review and update their policies and procedures accordingly.

Our Employment Rights Act hub brings together all of our latest insights and guidance in one place, helping you stay informed and prepared for the changes ahead.

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Key insights

Employment Rights Act 2025 summary

The Employment Rights Act received Royal Assent on 18 December 2025 and introduces comprehensive reforms to employment law.

During 2025, the government produced an implementation roadmap (Implementing the Employment Rights Bill - Our roadmap for delivering change) which was subsequently updated in February 2026 in the form of a revised implementation timeline (Plan to Make Work Pay and Employment Rights Act: timeline update).

Below we set out the key reforms for employers to be aware of and when they are set to come into force:

Key implementation dates

Date Reform
18 February 2026

Trade unions: 

  • Repeal of the majority of the Trade Union Act 2016 (simplifying the requirements on trade unions).
  • Protection from dismissal for industrial action.
6 April 2026

Trade unions: Simplifying the trade union recognition process.

Day 1 rights: 

  • Paternity and parental leave to become ‘day 1’ rights. 
  • Statutory sick pay payable from first day of sickness.

Protection from harassment: Sexual harassment added to the list of qualifying disclosures in respect of whistleblowing complaints.

Collective redundancies: Doubling of maximum protective award to 180 days.

7 April 2026

Fair Work Agency (FWA): FWA established (TBC when will become operational).

August 2026

Trade unions: Introduction of electronic and workplace balloting for statutory trade union ballots.

October 2026

Trade unions: Number of measures aimed at strengthening trade union rights including: 

  • duty to inform workers of their right to join a trade union;
  • strengthening trade unions’ rights of access to the workplace;
  • unfair practices in the trade union recognition process;
  • new rights and protections for trade union representatives; and 
  • protection against detriments for workers who take industrial action.
No earlier than October 2026

Employment tribunal time limits: Time limit for making an employment tribunal claim to increase from three months to six months.

January 2027

Unfair dismissal rights: 

  • Six-month qualifying period for unfair dismissal rights.
  • Removal of cap on unfair dismissal compensation.

Fire and rehire: Dismissal of an employee for their failure to agree to a ‘restricted variation’ to their contract of employment to become automatically unfair, save for in excepted circumstances.

2027

Collective redundancies: Change to thresholds triggering collective consultation.

Zero/low hours contracts: Reforms to increase security and predictability of workers’ hours and earnings.

Protection from harassment: Regulations to specify steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment.

Family friendly rights and leave protections: 

  • Bereavement leave including pregnancy loss.
  • Changes to process for determining flexible working requests. 
  • Enhanced dismissal protections for pregnant employees and new mothers.
  • Action plans on gender equality and supporting employees through the menopause. 

Trade unions: 

  • Broadening of scope of blacklisting protections.
  • Changes to industrial relations framework. 
  • Introduction of electronic and workplace balloting for recognition and derecognition ballots.
To be confirmed

Ban on non-disclosure agreements (NDAs): NDA to be void where it seeks to prevent a worker speaking out about harassment or discrimination, or the employer’s response to these allegations.

Key measures and reforms

What key changes will the ERA 2025 introduce?

Under the ERA 2025, an NDA will be void where it seeks to prevent a worker speaking out about harassment or discrimination, or the employer’s response to these allegations.

Consultation dates

Not specified.

Implementation dates

Not specified.

Suggested initial steps for employers

No action currently required.

What key changes will the ERA 2025 introduce?

  • Doubling the maximum protective award to 180 days’ pay.
  • Making changes to the thresholds triggering collective consultation.

Consultation dates

Ongoing (to close 21 May 2026): Threshold for triggering collective redundancy obligations.

Implementation dates

  • 6 April 2026: Doubling of maximum protective award.
  • 2027: Change to thresholds triggering collective consultation.

Suggested initial steps for employers

To be noted. The change to thresholds triggering collective consultation is yet to be confirmed.

What key changes will the ERA 2025 introduce?

The ERA 2025 will establish a new statutory authority, the Fair Work Agency (FWA), which will bring together existing enforcement functions, including minimum wage and statutory sick pay enforcement, labour exploitation and modern slavery, and adds holiday pay enforcement.

Consultation dates

No scheduled dates.

Implementation dates

FWA to be established 7 April 2026 (timeline for when the FWA will be fully operational not yet published).

Suggested initial steps for employers

Review current record keeping practices in relation to holiday entitlement and holiday pay to assess if compliance with new record keeping obligations can be demonstrated.

What key changes will the ERA 2025 introduce?

  • Stronger family leave protections, including enhanced dismissal protections for pregnant employees and new mothers.
  • Make statutory sick pay, paternity leave and unpaid parental leave day 1 rights.

Consultation dates

  • Closed 15 January 2026: Bereavement leave and rights for pregnant workers and new mothers.

Implementation dates

  • 6 April 2026: Paternity and parental leave to become ‘day 1’ rights. Statutory sick pay (SSP) payable from first day of sickness.
  • 2027: Bereavement leave and enhanced dismissal protections for pregnant employees and new mothers.

Suggested initial steps for employers

  • Update template contracts of employment and relevant policies.
  • Payroll teams should ensure systems reflect change to SSP.

What key changes will the ERA 2025 introduce?

Dismissal of an employee for their failure to agree to a ‘restricted variation’ to their contract of employment to become automatically unfair, save for in excepted circumstances.

Consultation dates

Ongoing (to close 1 April 2026): Fire and rehire: changes to expenses, benefits and shift patterns.

Implementation dates

January 2027.

Suggested initial steps for employers

  • When proposing to change employees’ contractual terms (in particular, relating to pay, working time and time off) consider whether the process can be completed before January 2027, bearing in mind the time required to elect and fully consult with employee representatives and for employees to serve their notice periods.
  • Consider whether any changes needed to new starter contracts.
  • Audit existing contracts to identify inclusion of a general variation clause (or consider introducing one for new starters and/or existing employees having regard to consultation obligations).

What key changes will the ERA 2025 introduce?

The ERA 2025 will strengthen protection from harassment by introducing the following measures:

  • The list of protected disclosures for whistleblowing purposes will be expanded to include sexual harassment.
  • Employers will be under a duty to take “all reasonable steps” to prevent sexual harassment of employees in the workplace.
  • Regulations will specify what will be regarded as reasonable steps an employer should take to prevent sexual harassment.
  • Employees will be protected from workplace harassment (relating to all protected characteristics under the Equality Act 2010) by third parties.

Consultation dates

No scheduled dates.

Implementation dates

  • 6 April 2026: Sexual harassment added to the list of qualifying disclosures in respect of whistleblowing complaints.
  • October 2026: Employers required to take “all reasonable steps” to prevent sexual harassment of employees. Employees protected from harassment by third parties. Power to enable regulations to specify what steps are to be regarded as “reasonable”, to determine whether an employer has taken all reasonable steps to prevent sexual harassment.
  • 2027: Steps regarded as “reasonable” to be specified.

Suggested initial steps for employers

  • Consider steps implemented following introduction of duty for employers to take “reasonable” steps to prevent sexual harassment in October 2024.
  • Review current risk assessments, policies and training, and any complaints received to determine if further preventative measures are required.
  • Consider the risk of harassment in the organisation, especially in relation to third parties, and any steps which could be taken to mitigate this.

What key changes will the ERA 2025 introduce?

The time limit for making an employment tribunal claim will increase from three months to six months.

Consultation dates

Not specified.

Implementation dates

No earlier than October 2026.

Suggested initial steps for employers

To be noted.

What key changes will the ERA 2025 introduce?

The ERA 2025 will introduce a package of reforms aimed at strengthening collective bargaining rights.

Consultation dates

  • Closed 28 January 2026: Electronic and workplace balloting.
  • Ongoing (to close 23 April 2026): Protection against detriments for taking industrial action.
  • Scheduled for early 2026: Measures including protection against detriments for workers who take industrial action and blacklisting.

Implementation dates

  • 18 February 2026: Measures including: repeal of the majority of the Trade Union Act 2016 (simplifying the requirements on trade unions) and protection from dismissal for industrial action.
  • 6 April 2026: Simplifying the trade union recognition process.
  • August 2026: Introduction of electronic and workplace balloting for statutory trade union ballots.
  • October 2026: Measures including duty to inform workers of their right to join a trade union, strengthening unions’ rights of access to the workplace, new rights and protections for trade union representatives and protection against detriments for workers who take industrial action.
  • 2027: Broadening of scope of blacklisting protections, changes to industrial relations framework and introduction of electronic and workplace balloting for recognition and derecognition ballots.

Suggested initial steps for employers

Consider how your organisation currently engages with the workforce on employee relations issues. Do you have any existing consultation mechanisms in place (for example a staff forum or consultation committee) or that your organisation would be open to putting into place in the future?

What key changes will the ERA 2025 introduce?

  • The qualifying period for unfair dismissal to be reduced from two years to six months.
  • The cap on compensation for successful unfair dismissal claims to be removed.

Consultation dates

  • Not specified.
  • Impact assessment on effect of removing the compensation cap published in January 2026.

Implementation dates

1 January 2027.

Suggested initial steps for employers

  • Review organisation’s current recruitment practices, probationary periods and approach to managing underperformance/conduct of employees with short service.
  • Consider if current strategy for senior exits requires adjustment, given the increased litigation risk arising from such exits given the removal of the compensation cap.

What key changes will the ERA 2025 introduce?

The ERA 2025 will introduce a package of reforms to increase security and predictability of workers’ hours and earnings.

Consultation dates

Scheduled for Autumn 2025: Not yet commenced.

Implementation dates

2027

Suggested initial steps for employers

Audit organisation’s use of zero/low hours contracts.

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