What the Employment Rights Act 2025 Means for You

In December 2025, the UK Parliament passed the Employment Rights Act 2025, ushering in substantial reforms to UK employment law. While the Act is now law, most of its changes will be implemented over the course of 2026 and into 2027. These reforms are designed to modernise workplace rights, providing greater security and flexibility for employees while giving clear, updated responsibilities to employers.

In this article, we outline the most important developments that are likely to affect families, employers and the workforce as we move through 2026 and beyond.

Day-One Family Leave Rights from April 2026

From 6 April 2026, both maternity/paternity leave and unpaid parental leave will become rights from the first day of employment. This removes the current qualifying periods that require employees to have been with an employer for 26 weeks (for maternity/paternity leave) or one year (for unpaid parental leave). In practical terms, this change enables new parents to take time off work much earlier in their careers, offering greater flexibility for families at a crucial time.

Another key update is the removal of the restriction that currently prevents an employee from taking paternity leave after shared parental leave. Under the new law, paternity leave will remain available irrespective of whether shared parental leave has already been taken.

Statutory Sick Pay and Redundancy Consultation

From April 2026, statutory sick pay will be payable from the first day of illness, rather than from the fourth. Employers will no longer need to assess whether an employee meets the lower earnings threshold to qualify, broadening eligibility and providing financial security for workers from the outset of sickness. The rate will be 80% of average weekly earnings or the flat rate, whichever is lower.

Changes in the Second Half of 2026

There are several significant reforms expected to take effect in October 2026:

• Restrictions on Dismissal and Rehire: The practice commonly referred to as “fire and rehire” will, in most cases, be treated as automatically unfair dismissal. Employers will need to proceed with caution and ensure genuine business justification if altering terms and conditions in this way.
• Shift Protections: Workers on zero-hour contracts will receive more robust protections. Employers will be required to offer guaranteed hours where an employee’s schedule has become regular. There will also be rights relating to reasonable notice for shifts and compensation if shifts are cancelled or altered at short notice.
• Employment Tribunal Time Limits: The timeframe for bringing claims to an employment tribunal will increase to six months for all claims, up from the current three-month limit in many cases.

In addition, the maximum penalty for failing to consult with workers in collective redundancy situations will double, signalling stronger protection for employees during organisational change.

2027 and Beyond: Further Rights and Protections

From January 2027 onwards, additional reforms will continue to roll out:

• Unfair Dismissal: The qualifying period for claims of unfair dismissal will be reduced from the current two years to six months of employment, broadening access to redress for employees.
• Pregnancy and Maternity Protections: Protections for pregnant workers and those returning from maternity leave will be strengthened, providing clearer safeguards against dismissal and less favourable treatment.
• Bereavement Leave: A new right to statutory bereavement leave will be introduced, although the details of entitlement (including whether the leave will be paid) will be confirmed in future regulations.
• Guaranteed Hours and Shift Rights: Those on zero-hours contracts who prefer more predictable work patterns will be able to request guaranteed hours, and protections related to cancelled shifts will be expanded.

Conclusion

The Employment Rights Act 2025 represents a significant overhaul of UK employment law, delivered in stages from April 2026 through 2027. For employees, this means earlier access to key family leave rights, greater financial security during sickness and improved protections at work. For employers, the changes will require careful planning and clear communication to ensure compliance with the new framework.

If you have specific queries about how these changes might affect you or your business, please do not hesitate to get in touch. Our team is here to guide you through the changing employment landscape with confidence.