Get in touch with our employment lawyers in the UK and call us on 0330 107 0106 to arrange a free no no-obligation call or request a free quote.
The Employment Rights Bill has now received Royal Assent and is in force as the Employment Rights Act 2025. This legislation introduces wide-ranging reforms to UK employment law. It represents one of the most significant developments in this area in recent years.
Although the Act is now law, many of its provisions will require further consultation and implementation through secondary legislation. As a result, the reforms will be introduced on a phased basis over the coming years. Employers, HR professionals and employment law specialists should therefore expect a gradually evolving regulatory framework. Practical obligations will change as individual measures come into force.
Set out below is a summary of the key reforms introduced by the Employment Rights Act 2025, together with the anticipated implementation timelines.
Key reforms under the Employment Rights Act 2025
Unfair dismissal protection
The Act significantly reforms unfair dismissal rights. From January 2027, the qualifying period for ordinary unfair dismissal will be reduced from two years to six months, rather than introducing a day-one right as previously proposed.
In addition, the cap on compensatory awards for unfair dismissal will be removed. The time limit for bringing most employment tribunal claims will be extended from three months to six months. These changes are likely to increase both the volume and value of unfair dismissal claims.
Flexible working
Employees will acquire a day-one right to request flexible working, expected to take effect in 2027. Employers will only be able to refuse such requests on specified business grounds. Any refusal must be reasonable, explained in writing, and preceded by consultation with the employee. This represents a tightening of the current flexible working regime and will require careful handling of requests.
Fire and rehire
The Act introduces new limits on the use of dismissal and re-engagement to impose contractual changes. From October 2026, it will be automatically unfair in most cases to dismiss an employee for refusing a restricted contractual variation. This will not apply where the employer can demonstrate genuine financial difficulty. This reform substantially restricts the use of “fire and rehire” practices.
Family rights
From April 2026, paternity leave and unpaid parental leave will be available from day one of employment.
From 2027, enhanced protection against dismissal will apply during pregnancy, maternity leave, adoption leave and shared parental leave. This protection will also apply for six months following a return to work.The Act also introduces a new right to bereavement leave, further extending statutory family-related protections.
Zero-hours contracts
The Act introduces new rights for workers engaged on zero-hours or similar arrangements. These include:
- a right to a guaranteed hours offer, subject to certain conditions;
- reasonable notice of shifts and schedule changes; and
- compensation for cancelled, rescheduled or shortened shifts.
A limited exception will allow fixed-term guaranteed hours for short-term or seasonal work. These provisions are expected to come into force in 2027.
Preventative duty on sexual harassment
The Act raises the standard on employers by imposing a preventative duty to take all reasonable steps to prevent sexual harassment. Detailed statutory guidance is expected to follow in 2027.
In addition, reports of sexual harassment will be brought within the scope of protected whistleblowing disclosures, expanding legal protection for individuals who raise such concerns.
Third-party harassment
Employer liability for harassment by third parties will be reinstated. Where an employer has not taken all reasonable steps to prevent harassment by clients, customers or other third parties. Workers will have a statutory right to bring a claim in these circumstances.
Trade union reform
The Act largely preserves existing trade union rights and recognition procedures but introduces new employer obligations. Employers will be required to inform workers of their right to join a trade union, typically through the employment contract.
In addition, listed trade unions will be granted a statutory right of workplace access, whether physical or virtual, to support recruitment and organisation for recognition purposes.
Collective redundancies
A new collective redundancy threshold will be introduced, most likely in 2027, alongside the existing threshold. This additional threshold will be calculated by reference to the total number of redundancies across the entire employing entity.
The precise parameters have not yet been confirmed, but the threshold may be based on either a percentage of the workforce or a fixed number of redundancies.
Conclusion
While the Employment Rights Act 2025 is now in force, its practical impact will emerge gradually as further consultation and secondary legislation bring individual reforms into effect. Employers should begin preparing for these changes by reviewing policies, contracts and workforce practices. They should also monitor developments closely as the regulatory framework continues to evolve.
If you have any questions about how these reforms may affect your organisation, or would like further updates as implementation progresses, please get in touch.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
