Complete Guide to the Employment Rights Act 2025

What’s changed in February 2026

• Increased dismissal protection for industrial action
  Employees participating in lawful industrial action will have stronger protection against dismissal. The current 12-week protection window is also being removed entirely.
• Notice periods for industrial action will be reduced
  Trade unions will be able to give shorter notice before taking industrial action, changing to 10 days from the currently required 14.
• Simple majority voting for industrial action
  Unions will need a simple majority of those voting to proceed with industrial action.
• Picket supervisors are no longer required
  The requirement for unions to appoint and identify picket supervisors is being removed, simplifying the logistics of organising picket lines.
• Industrial action mandates will be extended
  Mandates for industrial action will now last 12 months rather than 6, giving unions a longer window to take action following a successful ballot without needing to re-ballot members.
• Political fund rule changes
  The rules around trade union political funds are being reformed, though the specifics of how this affects employers are limited.

What businesses should do now:

If you recognise a union or operate in a sector where unionisation is common, now is the time to strengthen employee relations. Focus on proactive dialogue and addressing concerns before they escalate into disputes.

Alongside this, invest in creating a workplace culture where employees feel heard and valued. The best defence against industrial action is a workforce that feels their employer genuinely cares about their wellbeing and treats them fairly.

You should also review your business continuity plans with potentially shorter notice periods in mind:

• How would you maintain operations with less warning of industrial action?
• What communications would you need in place for teams, customers, and suppliers?

What’s changing in April 2026

• Day-one rights for paternity and unpaid parental leave
  Paternity leave and unpaid parental leave will become day-one rights. This means employees can access them immediately upon starting employment, rather than after a qualifying period.
  
  However, it’s important to note that while the leave becomes a day-one right, Statutory Paternity Pay still requires 26 weeks’ continuous service. This means new employees may be entitled to take the leave but not receive statutory pay during it.
  
  The restriction preventing paternity leave after shared parental leave will also be removed, giving families more flexibility when planning leave.
• Statutory sick pay reforms
  SSP will be payable from the first day of illness rather than after a waiting period of three days, and the lower earnings limit will be removed. SSP will be paid at 80% of usual earnings or the statutory flat rate, whichever is lower.
  
  This means more employees will be eligible for SSP, and they’ll receive it sooner.

• Collective redundancy consultation penalties to be doubled
  The maximum protective award for failing to properly consult on collective redundancies will double from 90 days’ pay to 180 days’ pay. This significantly increases the financial risk of getting redundancy consultation wrong.
• Sexual harassment will become a qualifying disclosure
  Sexual harassment will become a “qualifying disclosure” under whistleblowing law, meaning employees who raise concerns about sexual harassment will have protection against detriment and dismissal for doing so.
• Gender pay gap and menopause action plans
  From April 2026, businesses will be encouraged to voluntarily create action plans addressing gender pay gaps and menopause support. These will become mandatory at some point in 2027, so getting ahead of the curve now makes sense.
• The Fair Work Agency will be established
  A new Fair Work Agency will be created to enforce employment rights and tackle non-compliance. This represents a more proactive approach to employment law enforcement, with an increased chance of negative implications for businesses that aren’t meeting their obligations.

How businesses can prepare:

• Review family leave policies now
  Understand how day-one paternity and parental leave will affect workforce planning and coverage arrangements, and ensure managers receive updated guidance on how to apply the new rules. Updating HR policies should happen well before April.
• Assess the financial impact of SSP changes
  More employees becoming eligible for SSP from day one will likely lead to extra costs. Factor this into budgeting and consider how you’ll manage increased absence costs.
• If redundancies are possible, make consultation processes watertight
  With penalties doubling, the cost of getting this wrong becomes significantly higher. Expert support with redundancy processes can help you remain compliant while navigating difficult situations.
• Strengthen your approach to preventing sexual harassment
  Enhanced whistleblowing protections mean employees may feel more confident raising concerns. Ensure reporting mechanisms are clear and accessible, and train managers on how to respond appropriately.
• Consider voluntary action plans now
  Even though gender pay gap and menopause action plans won’t be mandatory until 2027, starting early demonstrates commitment and gives you time to develop meaningful approaches.

What’s changing in October 2026

• Fire and rehire restrictions
  “Fire and rehire” practices (dismissing employees and rehiring them on worse terms) will automatically become unfair dismissal. There will be extremely limited exceptions, essentially only where a business genuinely faces closure without the changes.

• Expanded liability for harassment
  Employers will be liable for harassment by third parties (such as customers, clients, or suppliers) unless they have taken all reasonable steps to prevent it.
  
  The duty to prevent sexual harassment is also being strengthened, requiring employers to take “all reasonable steps” rather than simply “reasonable steps”. This subtle language change implies a higher standard of prevention.

• Tipping law changes
  Employers will need to consult with workers or their representatives before creating or changing tipping policies, and these policies must be reviewed and updated at least every three years. This ensures transparency around how tips are distributed and gives workers a voice in the process.

• Extended tribunal time limits
  The time limit for making most claims to employment tribunals will increase from three months to six months. While this gives employees more time to bring claims, it also means employers face a longer period of potential liability after an event takes place.

How businesses can prepare:

• If you’re considering contract changes, plan for consultation and agreement
  You’ll need to negotiate changes with employees through consultation and reach agreement together. Strong employee relations and communication become even more important.
• Audit your approach to third-party harassment
  What steps have you taken to prevent harassment from customers, clients, or suppliers? Do you have clear policies? Do employees know how to report concerns? Are there consequences for third parties who behave inappropriately?
  Document the steps you’re taking — proving you have taken “all reasonable steps” requires demonstrable action.
• Review sexual harassment prevention measures
  With the raised standard, you must be proactive. Risk assessments, training managers and employees, clear reporting processes, and regular policy reviews will all contribute to demonstrating you’ve taken all reasonable steps.
• If you have tipping arrangements, ensure you have a written policy
  Create a clear policy in consultation with employees and review it every three years.
• Improve record-keeping
  With six-month tribunal time limits, maintain clear records of decisions, conversations, and events for longer periods.

What’s expected in 2027

• Pregnancy and maternity rights will be strengthened
  The Act aims to further protect pregnant workers and workers on maternity leave from dismissal.
• The end of “exploitative” zero-hour contracts
  Workers on zero-hour contracts will gain the right to guaranteed working hours based on their usual working pattern over a 12-week period. Workers will also have the right to be paid for shifts that are cancelled, cut short, or moved to a later date.
• Flexible working regulations to be updated
  If an employer rejects a flexible working request, they will have to explain why they have rejected the request and why they believe the refusal is reasonable.
• New rights to bereavement leave
  Employees will gain a new right to bereavement leave. There will also be an extension to parental bereavement leave for miscarriages occurring before the 24th week of pregnancy.
• Changes to the collective redundancy threshold
  Currently, the threshold for collective redundancy sits at 20 or more redundancies at one establishment. In 2027, this will change to include redundancies that take place across the employer’s organisation as a whole.

How businesses can prepare:

• Review maternity and pregnancy policies
  Ensure policies clearly outline protections. Train managers on discrimination risks and how to handle performance concerns or restructures involving pregnant workers or those on maternity leave. Stronger protections mean decisions must be carefully justified on legitimate business grounds.
• Assess your use of zero-hours contracts
  If you use zero-hours or low-hours contracts, start thinking about how guaranteed hours arrangements would work. Calculate typical patterns over the last 12 weeks, as this is likely to form the basis of guaranteed hours.
• Prepare for more detailed flexible working responses
  You’ll need to go beyond citing one of the eight statutory reasons. Document your decision-making process: what alternatives you considered, why they wouldn’t work, and what business impact you’d face.
• Create or update a bereavement leave policy
  Ensure you have a clear policy that covers new entitlements.
• Review redundancy processes across multiple sites
  If you’re planning restructures in 2027, get expert advice early to understand whether collective consultation requirements apply. Penalties for getting this wrong are significant — and will already have doubled in April 2026.