Employment Rights Act 2025: What you need to know

The Employment Rights Act 2025 introduces some of the most significant reforms to UK employment law in recent years. While the legislation received Royal Assent in December 2025, many of the changes will be implemented gradually between 2026 and 2027.

Key reforms include:

• Statutory Sick Pay payable from the first day of sickness absence
• Day-one rights for Paternity Leave and Unpaid Parental Leave
• Stronger protections for pregnant employees and those returning from maternity leave
• Restrictions on fire and rehire practices
• New protections for workers on zero-hours contracts
• Reduction of the unfair dismissal qualifying period from two years to six months
• Consultation requirements relating to tipping policies
• Creation of a new enforcement body, the Fair Work Agency

These reforms will affect how organisations manage contracts, sickness absence, probation periods, redundancy processes, workplace culture and workforce planning.

Preparing early will help employers ensure policies and management practices remain compliant as the reforms are introduced.

The Employment Rights Act 2025 is a major reform of UK employment legislation designed to strengthen worker protections and modernise workplace rights.

The Act introduces changes across several areas of employment law, including:

• job security and dismissal rights
• statutory sick pay and working conditions
• family leave entitlements
• workplace equality and harassment protections
• trade union rights and industrial relations
• enforcement of employment law

The legislation received Royal Assent on 18 December 2025, but many provisions require secondary legislation and consultation before they come fully into force.

As a result, the reforms are expected to be implemented gradually between 2026 and 2027.

For employers, the reforms will influence everyday workplace decisions such as managing probation periods, sickness absence, flexible working requests and contractual changes.