The government has published a revised Employment Rights Act 2025 (“ERA 2025”) implementation timeline (the “Timeline”) which confirms the delayed implementation of the fire and rehire protections, and also confirms the dates when changes previously listed to take effect in “in 2027” will come into force. The revisions to the Timeline, in particular the delay to the fire and rehire protections, should be noted by employers to allow for preparatory steps to be undertaken to ensure compliance ahead of the changes coming into force. 

Amendments to the Timeline

The Timeline confirms that the fire and rehire protections, originally intended to take effect in January 2027, will now take effect in March 2027. This delay is unsurprising, given that regulations are still required to specify which changes to expenses, benefits in kind and shifts will constitute a restricted variation (see below).  

The Timeline further clarifies that the duty on employers to provide workers with a written statement informing them of their right to join a trade union will take effect on 1 January 2027, as will measures to strengthen tipping law.  

In addition, the Timeline sets the following implementation dates for changes previously scheduled to take effect “in 2027”: 

The reforms to zero and low hour contracts have not been given a specific implementation date - the Timeline states that timings for these reforms are to be updated “following the consultation process”. 

Fire and rehire protections

The fire and rehire reforms will make it automatically unfair to dismiss or replace employees to make changes to core contract terms designated as 'restricted variations’ (except in cases of financial difficulties). Changes which amount to a restricted variation are defined by legislation and include: 

• the reduction or removal of pay (or other sums or entitlements payable); 
• reductions to holiday entitlement; 
• changes relating to pensions or pension schemes; and 
• changes to the hours or shifts worked by an employee.

In addition to confirming that implementation of the fire and rehire protections will be delayed until March 2027, the government also: 

• provided a response to its consultation on what changes to expenses, benefits in kind and shift patterns will constitute a restricted variation; and 
• issued a revised draft Code of Practice on Dismissal and Re-engagement (the “revised Code”) and opened a consultation its content. 

Response to consultation – changes to expenses, benefits and shift patterns 

The government has confirmed that the following changes to expenses, benefits in kind and shift patterns will constitute a ‘restricted variation’ for the purposes of the fire and rehire protections: 

1. Expenses and benefits 

Expenses and benefits will be carved out of the “sums or entitlements payable” restricted variation, except for the reduction or removal of: 

• travel expenses (including mileage);
• accommodation expenses; and  
• long-term accommodation (when provided as a benefit in kind).

Employers should note that only changes to contractual terms can constitute restricted variations. If the benefit is set out in a non-contractual policy, the employer may still change it. Similarly, if the benefit is a contractual term, but is covered by an existing variation clause, this also may be changed by the employer (however, as variation clauses are typically interpreted restrictively by tribunals, they will not give employers ‘carte blanche’ to make restricted variations).

2. Shift patterns

The following changes to shift patterns will constitute a restricted variation: 

• a change from daytime working to nighttime working (or vice versa); and 
• a change from weekday to weekend working (or vice versa).

For the purposes of the above, ‘nighttime’ will mean the period from 11pm - 6am. Employers who employ employees who work a shift pattern should note that: (i) changes to availability windows (i.e. where the contract sets out a range of hours the employee may be scheduled to work); and (ii) less extreme changes, such as pushing a shift back by a few hours in the daytime, will not be restricted variations. 

The government has confirmed that it will make regulations to reflect these changes, “when parliamentary time allows”, with the aim for the regulations to come into force alongside the fire and rehire protections in March 2027. 

Consultation on the revised Code

The government has also issued a revised Code, to reflect the introduction of the fire and rehire protections. The revised Code provides guidance for employers considering dismissal and re-engagement (or dismissal and replacement), and focuses on promoting information-sharing and meaningful consultation, with the aim of parties reaching agreement on changes to contracts of employment. The revised Code addresses with the financial difficulties exemption, and sets out what employers will need to show to rely on it.

The consultation confirms that: 

• The existing Code of Practice on Dismissal and Re-engagement will be withdrawn in March 2027, and a new Statutory Code of Practice will come into force in Summer 2027 (meaning there will be a period where no code will be in place). 
• Tribunals will be able to apply the same uplift of up to 25% to an employee’s compensatory award if an employer unreasonably fails to comply with the code where it applies (and reduce any compensatory award by up to 25% if the employee unreasonably fails to comply with the code).

The consultation seeks views on the content of the revised Code and will close on 17 December 2026.

So what for employers? 

The revised Timeline offers clarity to employers on when the changes under the ERA 2025 will come into force. While a number of the changes are subject to ongoing consultations and further parliamentary processes, employers should diarise the implementation dates and plan internally to prepare for compliance. 

The fire and rehire protections are seen as one of the ERA 2025’s flagship reforms, and the delayed implementation gives employers more time to ensure readiness for these changes. In particular: 

• employers should review their template employment contracts for variation clauses and consider whether these are likely to be effective. If not already included, employers should add variation and entire agreement clauses (the latter of which will assist arguments that entitlements set out in non-contractual policies have not become contractual terms) to template contracts; and
• HR and management teams should be prepared for resistance when changes which amount to restricted variations are proposed, and ensure that there are appropriate processes and bodies to facilitate meaningful consultation on the proposed change, as is encouraged by the revised Code. 

How can we help?

If you would like to discuss how our team of experienced employment lawyers can support your organisation, please get in touch. You can also find further resources on all things ERA 2025 on our ERA 2025 hub.