The Employment Rights Act is law — act now to stay compliant

The Employment Rights Act completed its passage through Parliament at the end of 2025. Many provisions are phased across 2026 and 2027. That makes this a planning issue, not a future problem: policies, contracts and people processes must change now.

Here’s a quick summary of the new Employment Rights Act and the practical steps you need to take.

Key changes employers must know

• Unfair dismissal: qualifying service reduced from two years to six months (effective Jan 2027). This increases early‑service exposure and requires faster, documented capability and conduct processes.
• Zero‑hours and agency workers: agency workers fall within the guaranteed hours and reasonable notice rules. Expect regulations defining a likely 12‑week reference period.
• Redundancy and collective consultation: protective awards for consultation failures double to 180 days’ pay. Review collective redundancy processes and trade‑union engagement.
• Whistleblowing and harassment: sexual harassment disclosures are explicitly protected as whistleblowing. Update reporting and investigation routes.
• Sickness and parental rights (April 2026): Statutory Sick Pay payable from day one; paternity and ordinary parental leave become day‑one rights; lower earnings threshold for SSP removed.
• Industrial action and tribunals: changes to strike rules and notice periods, plus extended tribunal claim windows and tighter rules on fire‑and‑rehire and tipping policies.

Phased timeline (high level)

• 18 Dec 2025: strike minimum service rules removed; trade union ballot thresholds simplified.
• Feb 2026: dismissal for lawful industrial action becomes automatically unfair.
• Apr 2026: SSP day‑one, parental rights day‑one, stronger protective awards, whistleblowing coverage.
• Oct 2026: fire‑and‑rehire largely unfair; tipping rules; tribunal windows extend.
• Jan 2027: six‑month unfair dismissal protection.
• 2027 (TBD): tighter flexible working refusal requirements.

What to do this quarter

• Audit dismissal, absence and flexible‑working policies.
• Review zero‑hours and agency contracts; check payroll reference periods.
• Update consultation and redundancy procedures.
• Map whistleblowing and harassment reporting routes.
• Build a three‑month implementation plan for HR, legal and payroll.

Download the free, updated guide for Health & Safety professionals (by our partners VinciWorks) here: Employment Rights Act 2025 guide.

More information

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