"ERA 2025" What employers need to know
A practical overview of the proposed changes and what they mean for employers in real terms.
Employment Rights Act
The Employment Rights Act 2025 represents the most significant overhaul of employment law in a generation. It applies across Great Britain (excluding Northern Ireland) and consolidates a broad range of reforms within a single piece of legislation.
What started as a relatively focused Bill expanded considerably as it progressed through Parliament, with dozens of measures now included.
Crucially, this is not a “switch-on-everything” moment. The new rights and employer obligations will be introduced in stages. The government is undertaking an extensive programme of consultations to determine how the changes will work in practice, including what employers will need to do and when.
The detailed requirements will be set out in secondary legislation once those consultations are complete.
The published implementation timetable remains in place. Employers should expect the first changes to come into force from April 2026, with further reforms following into 2027.
Statutory Sick Pay - April 2026
Waiting days for Statutory Sick Pay are being removed. This means all employees — including those earning below the Lower Earnings Limit — will be entitled to SSP from the first day of sickness absence. It’s a significant shift from the current system and one employers will need to factor into both absence management and payroll planning.
What to do next...
*Audit current SSP processes
Check HR and payroll systems for any automated waiting days or earnings-based eligibility rules, as these will need to be switched off.
*Review sickness absence policies
Policies and supporting documentation should be updated to reflect the change, helping to avoid confusion and difficult conversations later.
*Sense check cost impact
Understand the potential financial impact by reviewing sickness absence costs from last year and modelling the effect of paying up to three additional days per sickness episode.
Harassment - October 2026
Employers are required to take 'all reasonable steps' to prevent harassment of their employees, including harassment by third parties such as subcontractors, customers, and suppliers. This duty applies to all forms of harassment, including sexual harassment and harassment related to race, disability, age, and other protected characteristics.
What to do next...
*Review your harassment and dignity at work policies
Ensure relevant policies clearly state that harassment by third parties will not be tolerated.
*Train managers, anyone with supervisory responsibilities, early.
Managers should understand how to spot issues, respond appropriately, and escalate concerns quickly — particularly where third parties are involved.
*Check reporting routes
Employees should know how to raise concerns safely and confidently, even when the issue involves someone outside the organisation.
Unfair Dismissal - 2027
From January 2027, the qualifying period to bring an unfair dismissal claim will reduce from two years to six months. This means that employees with six months’ continuous service will be eligible to bring an unfair dismissal claim. In practice, this could include employees who were recruited as early as July 2026, provided they reach the six-month threshold by the implementation date.
What to do next...
*Plan, don't wait for 2027!
Get ahead of the game, adjust your practices now. Review what you do and adjust to suit.
*Review probation processes
With unfair dismissal rights kicking in much earlier, probation periods need to be meaningful, well-managed, and properly documented.
*Tighten documentation and records
Performance discussions, feedback, and support offered in the early months should be clearly recorded. Good notes today prevent bad surprises tomorrow.
Priorities for 2026...
Incoming changes timeline...
April 2026
Statutory Sick Pay
Removal of waiting days and the Lower Earnings Limit requirement
Fair Work Agency established
A new enforcement body bringing together workplace rights oversight
Collective redundancy protective awards
Maximum protective award period doubled
‘Day one’ family rights
Day 1 entitlement to Paternity Leave and Unpaid Parental Leave
Whistleblowing protections strengthened
Expanded protections for individuals raising concerns
Trade union recognition simplified
Streamlined recognition processes for unions
Modernised balloting
Introduction of electronic and workplace balloting
Pay and wellbeing transparency (voluntary)
Voluntary gender pay gap action plans and menopause action plans
October 2026
Preventing sexual harassment
Employers will be required to take all reasonable steps to prevent sexual harassment of their employees.
Third-party harassment duty
A new obligation on employers to prevent harassment of workers by third parties, such as customers, clients and suppliers.
Fire and rehire reforms
Restrictions and safeguards around the use of dismissal and re-engagement practices.
Extended tribunal time limits
Employment tribunal claim time limits extended from three months to six months.
Adult social care pay framework
Regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body.
Tipping laws tightened
Stronger rules to ensure tips and service charges are distributed fairly to workers.
Right to union membership
Employers will have a duty to inform workers of their right to join a trade union.
Trade union access rights
New rights for trade unions to access workplaces.
Enhanced protections for trade union representatives
New rights and protections for union reps carrying out their duties.
Industrial action protections extended
Broader protection against detriment for workers taking part in lawful industrial action.
2027
Unfair dismissal qualifying period reduced
The right to claim unfair dismissal after six months’ service, coming into force on 1 January 2027.
Zero-hours contract reforms
New rights including a guaranteed hours contract, reasonable notice of shifts, and reasonable notice of shift cancellation, curtailment or movement — with compensation where these rights are breached.
Pay and wellbeing transparency (voluntary)
Gender pay gap and menopause action plans, introduced on a voluntary basis from April 2026.
Enhanced protections for pregnant workers
Strengthened rights and safeguards during pregnancy and related periods.
Defining “reasonable steps” on sexual harassment
A new power to introduce regulations setting out what steps may be considered “reasonable” to prevent sexual harassment.
Blacklisting protections
Provisions aimed at preventing and addressing blacklisting practices.
Industrial relations framework changes
Wider reforms affecting collective employment relations.
Regulation of umbrella companies
Increased oversight and regulation of umbrella company arrangements.
Collective redundancy consultation
Changes to collective consultation thresholds.
Flexible working reforms
Further changes to flexible working rights and processes.
Bereavement leave
Introduction of new bereavement leave provisions.