You will doubtless have heard that after a long period of back and forth between the House of Commons and the House of Lords, the much-heralded Employment Rights Act 2025 was finally passed by Parliament on 16th December 2025 and received Royal Assent on 18th December.   

However, as is often the case with new Acts, not every provision will come into force immediately.   

Our expert employment law team has drawn up a list of the key changes you need to know about, in chronological order. This will give you a much clearer idea about what’s coming – and when. 

We also highlight reforms announced in the government’s Next Steps to Make Work Pay that sit outside the Act itself but will still affect workplaces like yours. 

Changes taking effect on Royal Assent (late 2025 / early 2026) 

Repeal of strike legislation 

  • The Strikes (Minimum Service Levels) Act 2023 is repealed immediately upon Royal Assent (removal of ballot thresholds). 

February 2026

Most of the Trade Union Act 2016 is repealed two months later, rolling back restrictions on industrial action introduced since 2010, including: 

  • Ballot notice requirements are simplified, industrial action mandates are extended to 12 months and notice of action reduced from 14 to 10 days. 
  • Validity of strike ballots extends to 12 months. 
  • Enhanced protection for employees taking part in strike action. 
  • Changes to facility time, union subscriptions and political fund reporting. 

April 2026

Family-related leave reforms 

  • Day One parental leave: the one-year qualifying period is removed. 
  • Day One paternity leave: the 26-week service requirement is abolished. 
  • Paternity leave and shared parental leave: employees can take paternity leave even if they have already taken shared parental leave. 

Whistleblowing 

  • Disclosure of sexual harassment is explicitly added to the list of qualifying disclosures for whistleblowing protection. 

Statutory Sick Pay 

  • SSP becomes payable from Day One of sickness. 
  • The lower earnings limit is removed, extending entitlement to all eligible employees. 
  • Those earning below the former threshold will receive SSP at 80% of weekly earnings. 

Trade union recognition (phase one) 

  • Removal of the 40% turnout threshold for statutory recognition ballots. 
  • Restrictions on employer “unfair practices” apply earlier in the process. 
  • Employees hired late in a recognition process are excluded from voting. 

Fair Work Agency established 

A new Fair Work Agency is formally created, bringing together state enforcement of the National Minimum Wage, Statutory Sick Pay, holiday pay and employment agency standards. The Agency will gain extensive powers, including issuing underpayment notices with 200% penalties, entering premises and bringing tribunal claims on behalf of workers. 

October 2026 

Fire and rehire restrictions 

  • Dismissals used to impose changes to key contractual terms (including pay, hours, pensions and leave) become automatically unfair, subject to a narrow financial distress exception. 
  • The ban extends to “fire and rehire” scenarios. 
  • The existing Code of Practice remains but will be updated. 

Collective redundancies 

  • Protective awards for failure to consult double from 90 to 180 days’ pay. 
  • New penalties apply even where dismissals arise from fire and rehire exercises. 

Harassment reforms 

  • Employers must take “all reasonable steps” (not just reasonable steps) to prevent workplace harassment. 
  • Employers become liable for third-party harassment, unless they took all reasonable preventative steps. 

Trade union access and rights 

  • Trade unions gain statutory rights to access workplaces (including digitally) for recruitment and organising. 
  • New protections against detriment for taking part in industrial action. 
  • Introduction of union equality representatives with paid time off. 
  • Obligation to notify workers explicitly of their right to join a trade union. 
  • Consultation and review requirements introduced for tips policies. 

Outsourcing of public services 

  • Regulations introduced to prevent a two-tier workforce on public service contracts. 
  • Private contractors must treat transferred public-sector staff, and their own workforce, no less favourably. 

Tribunal time limits 

  • Time limits for most Employment Tribunal claims extended from three to six months. 

2027 

Unfair dismissal 

  • The qualifying period for unfair dismissal reduces from two years to six months. 
  • The government commits to protecting this threshold by requiring future changes to be made by primary legislation. 

Unfair dismissal compensation 

  • The 52-week cap and statutory compensation cap are abolished, making unfair dismissal awards uncapped (basic awards remain unchanged). 

Collective redundancy thresholds 

  • A new, business-wide threshold for triggering collective consultation is introduced (details to be set by regulations). 

Zero hours and predictability reforms 

  • Duty to offer guaranteed hours contracts reflecting hours worked over a reference period. 
  • Right to reasonable notice of shifts and proportionate compensation for late cancellation. 
  • These rights extend to agency workers, with obligations split between agencies and end hirers. 

Flexible working 

  • Employers must show refusals are reasonable and explain why. 
  • Flexible working remains a Day One right. 

Equality action plans 

Employers with 250+ employees must publish equality action plans, including their gender pay gap action plans and menopause action plans. 

A voluntary period begins in April 2026, becoming mandatory in 2027. 

Family rights 

Enhanced protections against dismissal for: 

  • Pregnant employees 
  • Those on maternity and other family leave 
  • Returners (subject to limited exceptions) 

Introduction of a Day One right to bereavement leave, including for pregnancy loss before 24 weeks. 

Umbrella companies 

These will be formally defined and brought within statutory regulation, paving the way for tighter enforcement. 

Dates still to be confirmed 

Some important reforms are not yet on the roadmap, including: 

  • The ban on non-disclosure agreements covering harassment and discrimination 
  • New obligations to keep holiday entitlement and pay records 
  • A statutory right to switch off 
  • Surveillance technology consultation 

There is also no confirmed date for reforms under the forthcoming Equality (Race and Disability) Bill, including: 

  • Ethnicity and disability pay gap reporting 
  • Extension of equal pay rights 
  • Pay transparency measures 
  • A new Equal Pay Enforcement Unit