Understanding the Employment Rights Act 2025 changes

Introduction

The employment rights act 2025 changes introduce one of the most significant revisions to UK employment law in recent years. These reforms promise stronger worker protections, tighter employer obligations and the creation of a new enforcement body. For employers and HR professionals the changes are highly relevant: they will affect dismissal rights, statutory sick pay, protections for industrial action and contract terms. Early preparation is essential to reduce risk and ensure compliance as measures are phased in.

Main body

Key changes

• Unfair dismissal qualifying period: The qualifying period for bringing an unfair dismissal claim will be reduced from two years to six months. Sources indicate this change will take effect from 1 January 2027.
• Industrial action protections: The Act removes the current 12‑week qualifying period for claims relating to termination for taking part in industrial action, extending dismissal protection for participating workers.
• New enforcement body: The reforms establish a new enforcement body to oversee and uphold the updated rights and obligations.
• Statutory sick pay and contracts: The Act includes notable changes to statutory sick pay and directs employers to update sick pay policies and template employment contracts accordingly.
• Refusal to accept contract changes: The Act addresses unfair dismissal where an employee is dismissed for refusing to agree to changes to certain key terms of employment, subject to a high‑threshold exemption.
• Scope and timeline: The Act runs to over 300 pages and sets out a phased implementation. Some measures are scheduled for the first half of 2026, with major reforms, including the reduced qualifying period, coming into force by January 2027.

Practical steps for employers

Employers should start preparing now: review recruitment and dismissal procedures, update contracts and sick pay policies, and train managers — particularly during Q2 (preparatory period noted). Legal and HR teams should triage the key changes, revise template documentation and engage advisers for sector‑specific guidance. Use available resources such as the Employment Rights Act Hub for ongoing updates and detailed breakdowns.

Conclusion

The employment rights act 2025 changes represent a fundamental shift in the employment law landscape that will affect organisations of all sizes. Employers who review policies, train managers and update documentation in advance will be better placed to manage risk and maintain compliance. Expect further detail and phased roll‑outs; staying informed and seeking legal advice where necessary will be crucial as these changes take effect.