employment rights act 2025

If you've heard talk of the 'New Deal for Workers' and wondered what it actually means for your business, you're not alone. The Employment Rights Act 2025 is being described as the biggest overhaul of UK employment law in a generation and while most of the changes haven't kicked in yet, now is exactly the right time to understand what's coming and start preparing.

What is the Employment Rights Act 2025?

The Employment Rights Act 2025 (ERA) was the Labour government's flagship employment policy, promised within their first 100 days in office. It received Royal Assent (basically meaning it officially became law) on 18 December 2025. The changes won't all happen at once. The government has published a phased roadmap, with most reforms rolling out across 2026 and into 2027.

What's Changing in April 2026

Statutory Sick Pay (SSP) from day one
From April 2026, SSP is payable from the very first day of sickness absence. There's also no longer a lower earnings limit meaning even lower-paid workers will qualify. Update your sickness absence policy now so that it reflects these changes.

Day one rights to Paternity and Parental Leave
From April 2026, paternity leave and unpaid parental leave become day one rights. Review your contracts, policies and onboarding documents to reflect this change.

What's Changing in October 2026

Fire and rehire becomes much riskier
Dismissing and rehiring employees on worse terms will automatically become unfair dismissal in most cases. If you ever need to change employees' terms and conditions, you'll need proper consultation processes in place.

Tribunal Time Limits Double
Employees will have six months (instead of three) to bring most employment tribunal claims. Your processes and record-keeping need to be watertight. Document everything.


Harassment laws tightened
Employers will be required to take 'all reasonable steps' to prevent sexual harassment. Review your anti-harassment policies and make sure you have clear, documented processes for handling complaints.

What's Coming in 2027

The biggest headline change ‘day one unfair dismissal rights’ has been pushed back to January 2027. Other 2027 changes include zero hours contract reforms, strengthened protections for pregnant workers, bereavement leave as a day one right and tightened collective redundancy rules.

Your Action Plan 

Now if you haven’t already:

• Update your sickness absence policy to reflect day one SSP
• Review employment contracts and policies to reflect day one paternity and parental leave rights
• Make sure your offer letters and onboarding documents are also up to date

Before October 2026:

• Ensure your disciplinary, grievance and dismissal processes are properly documented
• Review your anti-harassment policy
• Start keeping thorough records of all employee related decisions and conversations

Before January 2027:

• Review your approach to probation periods, as these will become more important than ever
• If you use zero hours contracts, start thinking about how your working patterns might need to change
• Make sure any flexible working request processes are clearly documented

Get in touch with Keane HR: www.keanehr.co.uk/contact-us.html  |  Try Keane Assist free: www.keane-assist.com

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