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UK employment law is going through one of its biggest periods of reform in decades. The Employment Rights Act 2025 is reshaping the employer-worker relationship across sick pay, parental leave, unfair dismissal, zero hours contracts, trade union rights, sexual harassment, collective redundancy and employment enforcement.
Some changes are already in force. Others will arrive in October 2026, January 2027 and later in 2027. For HR professionals, people managers and employers, this is not something to leave until the last minute.
This guide explains the key changes to employment law, what HR teams need to review, and how employers can prepare through better policies, training and people management practice.
The Employment Rights Act 2025 is the main legislation behind the current wave of employment law reform. It was originally introduced as the Employment Rights Bill before becoming law.
The Government’s Plan to Make Work Pay is the wider policy programme behind many of these reforms. Its aim is to strengthen employment rights, improve job security, modernise enforcement and update the industrial relations framework.
For employers, these reforms affect:
This article is designed for HR professionals, HR teams, line managers, business owners and people leaders who need a practical overview of what is changing and what to do next.
The Employment Rights Act 2025 changes several areas of UK employment law. Many reforms are being introduced in phases so employers have time to prepare.
The main themes include:
These changes are just the beginning of a longer period of workplace reform. Employers should expect further details, regulations and guidance as implementation continues.
The reforms are being introduced in stages.
| Date | Main changes |
|---|---|
| 18 December 2025 | Employment Rights Act 2025 became law; minimum service level rules for strikes removed |
| 18 February 2026 | Stronger industrial action protections; dismissal for taking part in industrial action became automatically unfair |
| 6 April 2026 | SSP from day one; Lower Earnings Limit removed; day-one paternity leave; day-one unpaid parental leave; higher protective award; whistleblowing protections; voluntary gender pay gap and menopause action plans |
| 7 April 2026 | Fair Work Agency established |
| August 2026 | Electronic and workplace balloting for statutory trade union ballots, where agreed |
| October 2026 | Harassment duties, tipping changes, trade union measures, public sector outsourcing measures and adult social care negotiating body |
| No earlier than October 2026 | Employment tribunal time limits extended |
| 1 January 2027 | Six-month unfair dismissal qualifying period; compensatory award cap removed; fire and rehire protections |
| Later 2027 | Zero hours and low hours reforms, flexible working changes, NDA restrictions, bereavement leave, pregnancy protections, umbrella company regulation and mandatory equality action plans |
Employers should build this timeline into their HR planning, policy reviews and management training.
Several changes are already in force and should now be reflected in current HR practice.
From 6 April 2026, statutory sick pay (SSP) is paid from the first day of sickness absence. The three-day waiting period has been removed.
The Lower Earnings Limit has also been removed, meaning more employees are eligible for statutory sick pay.
Employers should review:
This is one of the most immediate employment law changes for payroll, HR and line managers.
Paternity leave and unpaid parental leave became day-one rights from 6 April 2026.
This means employees no longer need a long service period before becoming eligible for these leave rights. The notice period for paternity leave has also been temporarily reduced.
Employers should update:
These reforms are important for job security, family support and employee wellbeing.
Eligible fathers and partners can take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies within the first year of the child’s life.
This right is separate legislation but sits alongside the wider family-friendly reforms.
Employers should make sure managers understand this sensitive right and know where to seek HR guidance.
From 6 April 2026, the maximum protective award for failure to consult properly in a collective redundancy process increased from 90 days’ pay to 180 days’ pay.
This significantly raises the financial risk of getting consultation wrong.
Employers planning redundancies should review:
The collective redundancy protective award can become costly quickly where large groups of employees are affected.
From 6 April 2026, sexual harassment became a qualifying disclosure under whistleblowing law.
This means workers who disclose sexual harassment can receive whistleblowing protection from detriment and unfair dismissal.
Employers should review:
This reform links closely to wider changes around workplace harassment and the duty to prevent sexual harassment.
From 6 April 2026, employers can voluntarily publish action plans on gender pay gap issues and support employees experiencing menopause.
In 2027, equality action plans will become mandatory for employers with 250 or more workers.
Employers should start preparing now by reviewing:
This should not be treated as a tick-box exercise. Action plans should show practical steps, ownership and progress.
From 6 April 2026, employers must keep records of annual leave and holiday pay. These records must be kept for at least six years.
This is important because the Fair Work Agency will have enforcement powers in areas such as holiday pay.
Employers should check that HR systems, payroll systems and absence records are accurate, accessible and consistent.
The Fair Work Agency was established on 7 April 2026.
It brings together enforcement activity and will take on responsibility for areas such as:
The Fair Work Agency is intended to uphold workers’ rights and help businesses understand their obligations.
Employers should expect closer scrutiny of records, processes and compliance in the years ahead.
Trade union laws are changing across several phases.
From 18 February 2026:
Minimum service level rules for strikes were also removed on 18 December 2025.
Employers with unionised workforces should review industrial action procedures and seek advice before taking action against trade union members involved in protected industrial action.
From 6 April 2026, trade union recognition processes were simplified.
Further trade union measures are due in October 2026, including:
In 2027, further trade union changes are expected, including an updated industrial relations framework and stronger blacklisting protections.
HR teams should prepare managers to engage constructively with trade unions, trade union representatives and trade union equality representatives.
October 2026 is another important milestone for UK employment law.
From October 2026, employers will face stronger duties around harassment.
The changes include:
This means employers must do more than keep a policy in a handbook.
Practical steps include:
In 2027, further detail is expected on what “reasonable steps” means when preventing sexual harassment.
Employment tribunal time limits are expected to increase to six months for most employment tribunal claims no earlier than October 2026.
Breach of contract claims are expected to remain at three months.
This means employers may face a longer period of risk after workplace disputes. HR teams should improve record-keeping, investigation notes, performance documentation and manager decision records.
Tipping law will change in October 2026.
Employers will need to:
This is particularly relevant for hospitality, leisure and customer-facing businesses.
New measures on public sector outsourcing are expected in October 2026. These are intended to avoid different terms and conditions for ex-public sector employees and private sector employees working on outsourced contracts.
Employers involved in public sector outsourcing should review procurement, contract management and workforce planning arrangements.
A new Adult Social Care Negotiating Body is expected in October 2026.
This is part of the wider move towards stronger collective bargaining and fair pay arrangements in adult social care.
Employers in the sector should monitor further details and prepare for changes to pay, consultation and workforce planning.
Unfair dismissal protections will change from 1 January 2027.
From 1 January 2027, protection from unfair dismissal will apply after six months of employment. Currently, most employees need two years of service before they can claim unfair dismissal.
The Government had originally considered day-one unfair dismissal rights, but the final position is a six-month qualifying period.
This is still a major change. Employers will need stronger probation processes and better documentation from the start of employment.
From 1 January 2027, the limit on the compensatory award for unfair dismissal will be removed.
This increases potential financial exposure, especially where employees can show significant loss.
Employers should review:
From 1 January 2027, dismissal and rehire on worse terms will become automatically unfair in most cases.
This is sometimes known as fire and rehire.
Employers will need to show that they have followed a fair process and considered reasonable alternatives. Further guidance and an updated code of practice are expected.
HR teams should review contract variation processes during 2026, especially where changes to pay, hours, holiday, pensions or working arrangements may be needed.
Zero hours contracts are not being banned, but they are being significantly reformed.
In 2027, workers on zero hours and low hours contracts will gain new protections.
Workers on zero hours and low hours contracts will have the right to guaranteed working hours if they want them.
This is expected to apply where workers have worked regular hours over a reference period. Employers will need to monitor working patterns carefully and offer guaranteed hours where required.
Employers will need to provide reasonable notice of shifts and changes to shifts.
This will affect scheduling, rota planning and workforce management in sectors such as retail, hospitality, logistics, social care and healthcare.
Workers will have the right to be paid if a shift is cancelled, moved to another date or cut short at short notice.
Employers should review:
The reforms are also expected to affect agency workers and umbrella companies.
In 2027, the definition of agencies will be expanded to include umbrella companies, allowing enforcement by relevant bodies.
Employers using agency workers, labour suppliers or umbrella companies should audit their supply chains and check contracts, pay practices and compliance responsibilities.
Flexible working changed in 2024 when the right to request flexible working became a day-one right. Further amendments are expected in 2027.
If an employer refuses a flexible working request for a genuine business reason, they will need to:
This makes the quality of decision-making more important.
Employers should review:
Flexible working requests should be handled consistently and fairly.
In 2027, changes to non-disclosure agreements will void clauses that prevent workers from alleging or disclosing work-related harassment or discrimination.
Employers should review:
Non-disclosure agreements can still have a legitimate place, but they should not be misused to silence workers who want to report harassment, discrimination or wrongdoing.
Several further family-related protections are expected in 2027.
The Employment Rights Act 2025 will strengthen dismissal protections for pregnant workers and those returning from maternity leave.
Employers should review redundancy, restructuring and performance processes to make sure pregnant workers and returning parents are treated lawfully and fairly.
A new right to statutory bereavement leave will be introduced in 2027.
Further details are expected, but employers should start thinking about compassionate leave policies, manager guidance and support for employees experiencing bereavement.
From 2027, mandatory action plans around gender pay gaps and menopause support will apply to employers with 250 or more workers.
These plans should set out practical steps to:
HR teams should link action plans to employee engagement, absence data, flexible working, pay progression and leadership development.
These reforms affect almost every part of employment practice.
A practical preparation plan should include the following steps.
Map the key dates across:
Assign owners for each reform and set review dates.
Review:
Line managers will play a major role in implementation.
Training should cover:
Managers need to know when to act and when to involve HR.
Better records will be essential.
Review how you record:
Stronger documentation can reduce risk if employment tribunal claims arise.
Employers using zero hours contracts or low hours workers should review:
This is especially important for employers in hospitality, retail, logistics, healthcare and social care.
Employers should take reasonable steps now and prepare for all reasonable steps duties.
Practical actions include:
Employers should not wait until a claim is made before taking action.
Employees will need clear information about their employment rights.
Employers should plan communications on:
Clear communication helps build trust and reduces confusion.
e-Careers supports HR professionals, line managers and employers through flexible online training.
Our human resources courses and CIPD courses can help learners build knowledge in employment law, employee relations, people management, HR processes and organisational practice.
Relevant routes include:
Learners benefit from:
For employers, structured HR and people management training can help build confidence across HR teams and line managers as the legal framework changes.
The changes to employment law from 2025 to 2027 affect almost every employer. Some reforms are already in force, while others will arrive in October 2026, January 2027 and later in 2027.
The safest approach is to prepare early. Review your policies, strengthen manager training, improve record-keeping and make sure employees understand their rights.
For HR teams, this is a major compliance challenge, but also an opportunity to improve workplace culture, employee trust and people management practice.
Explore our human resources courses and CIPD courses to support your team through the next phase of UK employment law change.
What is the Employment Rights Act 2025?
The Employment Rights Act 2025 is a major piece of UK employment law. It introduces changes across sick pay, family leave, unfair dismissal, zero hours contracts, trade union rights, harassment, employment enforcement and other workplace rights.
The Act became law in December 2025, with changes being introduced in phases across 2026 and 2027.
What employment law changes started in April 2026?
April 2026 changes include statutory sick pay from day one, removal of the Lower Earnings Limit, day-one paternity leave, day-one unpaid parental leave, bereaved partner’s paternity leave, stronger whistleblowing protection for sexual harassment, a higher collective redundancy protective award, holiday record-keeping and voluntary gender pay gap and menopause action plans.
The Fair Work Agency was established on 7 April 2026.
What is changing in October 2026?
October 2026 changes include stronger harassment duties, tipping changes, trade union measures, protection against detriment for industrial action, public sector outsourcing measures and the Adult Social Care Negotiating Body.
Employment tribunal time limits are also expected to increase no earlier than October 2026.
When do unfair dismissal rights change?
Unfair dismissal protections change from 1 January 2027.
Employees will be able to claim unfair dismissal after six months of employment, rather than the current two-year qualifying period for most claims. The limit on the compensatory award for unfair dismissal will also be removed.
Are zero hours contracts being banned?
No. Zero hours contracts are not being banned.
However, in 2027, zero hours and low hours workers will gain new rights, including the right to guaranteed working hours if they want them, reasonable notice of shifts and payment for short notice cancellations or changes.
What is the Fair Work Agency?
The Fair Work Agency is a new enforcement body established in April 2026.
It brings together enforcement activity and will cover areas such as holiday pay, statutory sick pay, National Minimum Wage, agency work rules and, later, umbrella company regulation.
What should employers do now?
Employers should review contracts, policies, handbooks, HR systems, payroll, sickness processes, family leave policies, harassment procedures, redundancy processes, flexible working policies and zero hours arrangements.
They should also train line managers and improve record-keeping before further changes take effect.
How can e-Careers help with employment law changes?
e-Careers offers flexible online HR, CIPD and people management training that can help HR teams and line managers understand employment law changes, improve employee relations practice and prepare for new workplace responsibilities.
Explore e-Careers’ human resources courses or compare our online CIPD courses to find the right training route.
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