Main laws

United Kingdom Act

Employment Rights Act 2025

The Employment Rights Act 2025 is a major package of UK workplace reforms.

Partly in forceUnited KingdomPlain-English guide5 practical checks

Plain-English explainers, not legal advice. Use the linked official source for section-level detail, and get advice for your situation.

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Quick read

  • For small employers, this is a staged update to hiring, absence, dismissal, union and workforce-management processes.
  • Some measures already apply, while others need regulations or later commencement.

Likely relevant if

  • UK employers of any size
  • Businesses hiring their first employee during 2026 or 2027
  • Employers using probation, dismissal or redundancy processes

Check first

  • Identify which reforms are already in force and which start later
  • Update family leave, sickness absence and bereavement processes for the 2026 changes
  • Prepare dismissal and probation processes for the January 2027 unfair-dismissal reforms

Start with the timeline

This Act is a reform programme, not a single switch. Royal Assent made it law, but individual measures start on different dates. That distinction matters when a business updates a contract, handles leave or makes a dismissal decision.

Build the project around commencement dates. For each measure, record the legal start date, the business process affected, the document or system that needs changing and the person responsible.

The 2026 changes employers should know

The April 2026 package changed several everyday employment processes. Statutory Sick Pay no longer uses the lower earnings limit or waiting period in the same way, and day-one rights were introduced for paternity leave and unpaid parental leave. The collective redundancy protective award was also increased.

The official timetable then moves through union, harassment, tipping and enforcement measures later in 2026. Not every business will use every rule, but every employer should know which internal process owns the change.

Key points

  • Check payroll and absence settings against the current Statutory Sick Pay rules
  • Remove service-length assumptions from paternity and unpaid parental leave workflows
  • Escalate collective redundancy planning early because process failures can carry greater exposure
  • Review how harassment concerns involving customers, contractors or other third parties are handled
  • Make sure the person monitoring employment changes knows the Fair Work Agency's role

Prepare now for the 2027 changes

The January 2027 timetable includes a six-month qualifying period for ordinary unfair-dismissal protection and stronger restrictions on dismissal and re-engagement. Later reforms are expected for guaranteed hours and shift notice.

For a small employer, the operational effect is straightforward: early performance conversations need to happen earlier, probation reviews need real dates and evidence, and variable-hours models need a deliberate review before the new rights commence.

  1. Map the workforce

    Identify employees in probation, variable-hours workers, agency arrangements and any roles likely to change.

  2. Fix the manager process

    Set probation review dates, document performance concerns and make escalation routes easy to use.

  3. Update the documents

    Align contracts, policies, letters and payroll settings with the rule that will apply.

  4. Recheck before commencement

    Confirm final regulations and official guidance before relying on the updated process.

Common implementation mistakes

Key points

  • Treating Royal Assent as the commencement date for every reform
  • Updating a policy without changing payroll, forms or manager behaviour
  • Leaving probation reviews until the final week
  • Using old service-length wording in family leave guidance
  • Assuming a casual label answers the new guaranteed-hours questions
  • Relying on a summary after regulations or commencement dates have changed

Common questions

Did every Employment Rights Act change start at Royal Assent?

No. The Act is being commenced in stages. Employers should check the date for the particular reform and any regulations or official guidance that support it.

What should a small employer review first?

Start with processes already affected in 2026, then work forward by commencement date. Sickness absence, family leave, probation, dismissal and variable-hours arrangements are sensible priorities for many employers.

Can an employer wait until January 2027 to prepare for dismissal changes?

That is risky. A shorter qualifying period makes early performance management and probation records more important. Contracts, manager training and review points should be updated before the new rules apply.

Related topics

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Update history

Commenced18 July 2026

Employment Rights Act rollout reaches its 2026 implementation phase

The official implementation timetable now spans measures already introduced in April 2026 and further workplace reforms scheduled across October 2026 and 2027.