Employment Rights Act 2025

Employment law is changing. Is your business ready?

Some of the biggest changes to UK employment law in a generation are already taking effect — with further reforms arriving from October 2026 and throughout 2027. If you employ people, now is the time to make sure your business is prepared.

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Practical support for employers across Cumbria.

The bigger picture

This isn’t one change. It’s a programme of reform.

The reforms affect different parts of the employment relationship, from sickness absence and family leave to dismissals, workplace harassment, tribunal claims and enforcement.

Already happening Changes are already in force

Employers should already have considered whether existing policies and processes reflect the April reforms.

October 2026 Further obligations arrive

Tribunal time limits increase and strengthened harassment protections take effect.

January 2027 Dismissal rules change

The unfair dismissal qualifying period reduces and the compensatory award cap is removed.

Throughout 2027 More reform follows

Flexible working, guaranteed hours, bereavement leave and further protections are expected.

!

Waiting for each deadline could leave your business playing catch-up.

Contracts, policies, payroll processes, management procedures and staff training may all need consideration at different points in the implementation programme.

Check Your Business
Employment Rights Act timeline

What has changed — and what happens next?

The reforms are being introduced in stages. Here are some of the changes employers need to have on their radar.

✓
April 2026 Already in force

The first major employer changes arrived

A number of employment rights changed in April. Businesses should already have considered their impact.

  • Statutory Sick Pay from the first full day of sickness
  • Removal of the SSP lower earnings threshold
  • Day-one Paternity Leave
  • Day-one Unpaid Parental Leave
  • Higher protective awards for collective redundancy failures
  • Stronger whistleblowing protection relating to sexual harassment
  • New holiday-pay record-keeping requirements
  • Launch of the Fair Work Agency
Question for employers: Have your policies, systems and manager guidance already been reviewed to reflect the changes now in force?
1
1 October 2026 Coming next

Employees have longer to bring Tribunal claims

The time limit for bringing many Employment Tribunal claims increases from three months to six months.

Why it matters: Employment decisions — and the records supporting them — may remain relevant to potential claims for longer.
2
30 October 2026 Approaching

Harassment prevention duties strengthen

Employers will be required to take “all reasonable steps” to prevent sexual harassment and will face strengthened responsibilities concerning harassment by third parties such as customers and clients.

Question for employers: If challenged, could your business demonstrate the preventative steps it has actually taken — rather than simply pointing to a policy?
3
1 January 2027 Major change

Unfair dismissal protection changes significantly

The qualifying period for ordinary unfair dismissal protection will reduce from two years to six months. The existing cap on compensatory awards for unfair dismissal will also be removed.

Why employers should prepare early: Recruitment, probation, performance management, record keeping and dismissal procedures may all warrant review before the new rules take effect.
4
Throughout 2027 Further reform

And the changes don’t stop there

Further measures are expected across a wide range of employment practices.

  • Flexible working
  • Guaranteed hours
  • Reasonable notice of shifts
  • Short-notice shift payments
  • Bereavement leave including pregnancy loss
  • Enhanced protections for pregnant women and new mothers
  • Gender equality and menopause action plans
  • Further collective redundancy changes
Some implementation dates and detailed requirements remain subject to consultation, regulations and parliamentary processes. Employers will need to keep their approach under review.

There’s a lot changing. You don’t have to navigate it alone.

Speak to us about the Employment Rights Act and the support available to help your business prepare.

Request Expert Help
The question that matters

Knowing the law has changed is only the beginning.

The real question is whether the way your business actually employs and manages people is ready for those changes.

01

Employment contracts

When were your employment contracts and template documents last professionally reviewed?

02

Staff policies

Do your sickness, parental leave, harassment and other policies reflect the rights already in force?

03

Probation & dismissal

Will your current approach remain appropriate when ordinary unfair dismissal protection applies after six months?

04

Harassment prevention

Could you evidence the practical steps your organisation has taken to prevent harassment?

05

HR & payroll processes

Have the operational changes already introduced in 2026 actually flowed through into your systems?

06

Your managers

Do the people making everyday employment decisions understand the risks, responsibilities and processes involved?

Not completely confident about every one of these?

It is better to identify a gap now than discover it after an employee issue, grievance, dismissal or Tribunal claim.

Why preparation matters

The cost of getting employment decisions wrong is changing too.

The reforms do more than create new rights. They also change the environment in which employment disputes, claims and enforcement take place.

01

Longer exposure to claims

From October, employees will generally have longer to bring many Employment Tribunal claims.

02

Uncapped compensatory awards

The existing compensatory award cap for unfair dismissal will be removed from January 2027.

03

A changing enforcement landscape

The Fair Work Agency is now operating and will take on enforcement of additional employment rights over time.

The safest time to identify a gap in your employment practices is before an employee does.

Expert support

You don’t need to become an employment law expert.

You do need to know that your business is taking the right steps at the right time.

  • ✓
    Understand what applies to your business Cut through the volume of employment law change.
  • ✓
    Identify areas that may need attention Know where potential gaps could exist.
  • ✓
    Prepare before the next deadlines Take action while there is still time to plan properly.
  • ✓
    Access practical expert support Get help rather than trying to interpret everything yourself.
Take the next step

Make sure your business is ready.

Tell us a little about your business and where you need help. Our team can help you understand the support available and what your next step should be.

  • For Chamber members and non-members
  • No need to understand the legislation before contacting us
  • Practical support focused on your business
  • Start the conversation before the next changes arrive

Request expert help

Complete the short form and a member of the team will be in touch.

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