The Employment Rights Act 2025 received Royal Assent on 18 December 2025, marking a significant reform to UK employment legislation. The Act introduces wide-ranging changes to workers’ rights, with implementation occurring in a phased manner over the coming years. Below is a structured overview of the key developments and expected timelines, based on the legislative framework and associated announcements.

Immediate / Late 2025 Changes

•  Paternity Leave (Bereavement) Act 2024 — This came into force on 29 December 2025. Eligible employees may now take statutory paternity leave without the usual 26-week continuous service requirement in cases where the mother or adopter dies during childbirth or within one year of the birth or adoption.

•  Minimum service levels during strikes — The rules established under previous legislation no longer apply, effective from Royal Assent (18 December 2025). This change primarily affects key public sector services, including health, education, fire and rescue, border security, and transport.

April 2026 Changes

Several important reforms are scheduled for this period:

•  Establishment of the Fair Work Agency — This new body will consolidate enforcement functions from the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority, and HMRC’s National Minimum Wage team. It will gain additional powers to enforce holiday pay entitlements and initiate tribunal proceedings on behalf of workers, even without their consent. Robust record-keeping and compliance will be essential for all employers.

•  Statutory Sick Pay (SSP) — The three-day waiting period will be eliminated, and the lower earnings limit (£125 per week) will be removed, making SSP accessible to more workers. The rate will be set at £118.65 per week or 80% of average weekly earnings (whichever is lower).

•  National Minimum Wage / National Living Wage increases — The following rates will apply from April 2026:

•  Workers aged 21 and over: £12.71 per hour (4.1% increase).

•  Workers aged 18–20: £10.85 per hour (8.5% increase).

•  Workers aged 16–17 and apprentices: £8.00 per hour (approximately 6% increase).

•  Collective redundancy protective award — The maximum award for failure to consult on collective redundancies (20 or more employees within a 90-day period) will double from 90 days’ pay to 180 days’ pay per affected employee.

•  Day-one rights to paternity and parental leave — The qualifying service requirements will be removed (currently 26 weeks for paternity leave and one year for parental leave). Note that statutory paternity pay remains subject to eligibility criteria, and parental leave continues to be unpaid.

•  Enhanced whistleblowing protections — Workers who report sexual harassment will receive protection from detriment or unfair dismissal.

•  Prohibition of non-disclosure agreements — Agreements that prevent employees from disclosing information about harassment or discrimination will be unlawful.

October 2026 Changes

•  Tipping regulations extension — Employers will be required to consult workers when establishing or reviewing tipping policies, with reviews mandated at least every three years.

•  Employment tribunal time limits — The standard period for bringing most claims will extend from three months to six months.

•  Restrictions on fire and rehire practices — Dismissal for refusing to accept detrimental contractual changes (e.g., reductions in pay, hours, shifts, or holiday entitlement) will become automatically unfair, subject to limited exceptions such as genuine financial distress.

•  Trade union enhancements — Employers must provide new workers with a written statement confirming their right to join a trade union, along with entitlements to use workplace facilities for union activities and paid time off. Unions will gain rights to request workplace access for recruitment, organisation, and collective bargaining purposes.

•  Duty to prevent sexual harassment — Employers will be required to take all reasonable steps to prevent sexual harassment of employees, representing a heightened standard from the previous “reasonable steps” obligation. This includes responsibility for third-party harassment of workers.

January 2027 Changes

•  Unfair dismissal reforms — The qualifying period of service will reduce from two years to six months, with employees reaching six months’ service by 1 January 2027 becoming eligible to claim. The statutory cap on compensation for unfair dismissal will also be removed.

•  Guaranteed hours for zero-hours, low-hours, and agency workers — Workers will gain the right to a contract reflecting their usual working pattern, with notice or compensation required for shift changes.

•  Umbrella companies — Stricter regulatory requirements will apply.

•  Flexible working requests — Employers must provide a reasoned explanation for any refusal.

•  Bereavement leave extensions — Unpaid bereavement leave will be introduced or extended to cover miscarriages before the 24th week of pregnancy, alongside enhancements to parental bereavement rights.

•  Additional protections — These include extended rights for pregnant workers, protection against detriment for participating in industrial action, and detailed regulations specifying reasonable steps to prevent sexual harassment.

Employers are advised to review contracts, policies, and procedures in advance of each implementation phase to ensure compliance. Further secondary legislation and guidance are anticipated, particularly for enforcement mechanisms and specific obligations. For tailored advice on how these changes may affect your organisation, please consult specialist employment law professionals.