Introduction
The Employment Rights Act 2025 (‘ERA 25’) received Royal Assent on 18 December 2025[1]. The Government has stated that the Act was developed in close collaboration with businesses and trade unions and is intended to modernise employment law, thus extending protections to millions of workers.
At its core, ERA 25 seeks to address what has been described as one-sided flexibility in the labour market, ensuring that flexibility for employers is balanced with a baseline level of security for workers. It is said that it is aims to assist growing the economy, boosting wages and reducing the practice of insecure work.
This article highlights some of the key changes employers, employees and workers generally need to be aware of[2].
What Does This Mean for Me?
ERA 25 introduces significant additions and amendments to existing employment legislation, including changes to the Employment Rights Act 1996.
There are also territorial specific developments. For example, a School Support Negotiating Body will be established in England, providing school support staff with a formal voice on pay, conditions, training and career progression.
When Will the Changes Take Effect?
Implementation will be phased, with most provisions coming into force during 2026 and 2027, primarily in April and October.
One important change has already taken effect however as the minimum service level requirements for strikes were repealed on 18 December 2025.
Is there a change to the Employment Tribunal’s Claim Time Limits?
The ERA 25 extends the time limit for bringing claims in the Employment Tribunal. A single six-month limitation period will apply to nearly all of the Employment Tribunal’s claims, replacing the current three-month time limit (e.g. dismissal and discrimination). It is anticipated that all claims will be subject to the six-month time limit in the future.
Changes Coming in 2026
- Family-related leave – Paternity leave will become a day-one right. Parental leave will also become a day-one right, removing the current one-year service requirement.
- Statutory Sick Pay (SSP) – SSP will be payable from day one of illness (rather than day four). The lower earnings limit will be removed, extending SSP entitlement to lower-paid workers.
- Sexual harassment and whistleblowing – Sexual harassment will become a qualifying disclosure for whistleblowing protection. Individuals raising concerns will be protected from detriment and dismissal. Employers must also take steps to prevent harassment by third parties.
- Fire and Rehire / Fire and Replace – Workers will gain protection against dismissal and re-engagement on worse terms and conditions.
- Tipping policies – Employers will be required to implement a written tipping policy, (which also needs to be reviewed at least every three years).
- Industrial action dismissals – Dismissals connected to lawful industrial action will become automatically unfair ( thus removing the current 12-week qualifying threshold).
- Industrial action procedures – Notice periods for industrial action will reduce from 14 to 10 days; picket supervisors will also no longer be required (they are currently).
Changes Coming in 2027
- Unfair dismissal qualifying period – The qualifying service requirement will reduce from two years to six months.
- Cancelled shifts – Employers cancelling shifts at short notice will be required to compensate affected workers. Equivalent protections will apply to agency workers.
- Flexible working requests – Employers will be legally required to explain, why a request is refused, why the refusal is based on a genuine business reason and why the refusal is considered reasonable. Whilst Employers are currently required to do this as a matter of best practice; in going forward there is a statutory requirement to do so – this is an important change.
- Collective redundancy consultation – a failure to meet the new requirements can result in a protective award of up to 180 days’ pay (currently capped at 90 days).
Conclusion
While the Government published a roadmap for ERA 25[3], both implementation timelines and legislative detail continue to evolve.
Nevertheless, several changes which are of interest to employers, employees and workers will begin to impact workplaces from February 2026 onwards. Employers should act without delay to review their existing policies, procedures and workforce planning to ensure continued compliance.
Huw Davies has extensive experience advising organisations and individuals on employment law matters and regularly supports employers in reviewing and developing compliant policies and procedures.
If you have questions about this article or require support with employment law or policy development particularly in light of ERA 25 (and its planned / anticipated changes), please contact Huw at HDavies@1ec.co.uk.
[1] Employment Rights Act 2025
[2]It is not however, a complete review of all applicable obligations and you are strongly advised to seek your own professional advice. Huw Davies, would be happy to advise and provide a detailed bespoke Roadmap should you wish, feel free to email Huw.
