Employment Rights Act 2025 and the changes you need to prepare for

The government has published the timetabled changes that are coming in line with the Employment Rights Act 2025. Here's a rundown

On February 4, the government published its first set of measures around the controversial Employment Rights Act 2025, which got Royal Assent just before Christmas.

We’re going to go over the upcoming timetabled changes. A lot of these measures still have open consultations that you can contribute to, especially the ones expected later in the implementation process. Take a look at the Make Work Pay open consultations page.

We’ll be updating this article as more details are published, but in the meantime you can read on or go to your preferred section.

  1. Changes that came into effect at the time of Royal Assent
  2. Taking effect from February 18, 2026
  3. Taking effect from April 6, 2026
  4. Taking effect from April 7, 2026
  5. Taking effect in August 2026
  6. Taking effect in October 2026
  7. Taking effect in December 2026
  8. Taking effect in January 2027
  9. Taking effect in 2027

Changes that came into effect at the time of Royal Assent

The repeal of Strikes (Minimum Service Levels) Act 2023 

These were the rules brought in by the previous government around keeping services going during strike action.

Taking effect from February 18, 2026

Repeal of most of the Trade Union Act 2016, simplifying requirements on trade unions, including in relation to industrial action and political funds

Picket supervisors won’t be needed anymore and industrial action mandates will last for 12 months rather than six. Unions will need more votes in favour of strike action rather than against and extra rules for public sector will be scrapped.

Removing the ten-year ballot requirement for trade union political funds

Simplifying industrial action notices and industrial action ballot notices

The notice period for industrial action will reduce from 14 days to 10 days.

Protection against dismissal for taking industrial action

Being let go for taking industrial action will immediately count as unfair. The current 12-week limit for claiming unfair dismissal will also be removed.

Employees that are newly eligible for ‘Day 1’ paternity leave and unpaid parental leave can give their notice from this date

The notice for paternity leave will temporarily reduce from 15 weeks to 28 days.

Taking effect from April 6, 2026

Doubling the maximum period of protective award on collective redundancy

This is the maximum protective award for failing to consult during the collective redundancy process. It will increase from 90 days’ to 180 days’ pay.

‘Day 1’ paternity leave and unpaid parental leave

These ‘Day 1’ rights come into force, plus the restriction on taking paternity leave after shared parental leave will be removed.

Strengthening protections on sexual harassment whistleblowing

This means that sexual harassment whistleblowers will be protected from detriment and unfair dismissal for speaking up.

Bereaved partners’ paternity leave

Bereaved fathers and partners can take up to 52 weeks of paternity leave if the mother or adopter dies within one year of the child’s life. This must be taken within 52 weeks of the child’s birth (this includes surrogacy).  

Scrapping the lower earning limit and waiting period for Statutory Sick Pay

Employees will get SSP on the first day of illness rather than the fourth.

Action plans for gender equality and supporting employees through the menopause (voluntary)

Employers will need to create action plans for gender equality and menopause which will be voluntary until some time in 2027.

Simplifying trade union recognition process

With an updated code to support this coming in October 2026.

Taking effect from April 7, 2026

Fair Work Agency will be established

This will combine existing enforcement bodies and take on the enforcement of other rights such as holiday pay and SSP.

Taking effect in August 2026

Electronic and workplace balloting for Statutory trade union ballots

If the trade union and employer agree, trade union members will be able to vote in-person or electronically on issues such as industrial action, union elections and other statutory ballots.

The 50 per cent turnout requirement will be scrapped.

Taking effect in October 2026

Bringing forward regulations in order to establish Fair Pay Agreement Adult Social Care Negotiating Body in England

A new negotiating body for adult social care.

Two-tier code for procurement

New rules for public sector outsourcing will prevent having different terms and conditions for ex-public sector employees and private sector employees.

Tightening of tipping law

From October, employers will need to consult with staff and their representatives before creating a tipping policy. They’ll also need to update their tipping policy every three years.

Employers have a duty to tell employees about their right to join a trade union

The original proposals state that employers should give workers a written statement about their right to join a trade union at the start of employment and at other times.

Strengthening trade unions’ right of access

Under original proposals this would give trade unions more access to workplaces.

Employers must take ‘all reasonable steps’ to prevent sexual harassment of their employees

Liability for sexual harassment of employees will be on the employer, unless they’ve taken ‘all reasonable steps’ to prevent it. This is a step above the current ‘reasonable steps’.

Obligation of employers not to allow staff to be harassed by third parties

Liability for third-party harassment of employees will be on the employer, unless they’ve taken reasonable steps to prevent it.

Introducing a power to enable regulations to specify ‘reasonable’ steps to determine whether an employer has taken all reasonable steps to prevent sexual harassment 

Unfair practices in the trade union process

Bringing in modern and secure electronic voting in line with current voting systems.

New rights and protections for trade union representatives

Extending protections against ‘detriments’ for taking industrial action

Protections will stretch to ‘detriments’, i.e. being treated less favourably by their employer, as well as unfair dismissal.

Employment tribunal time limits

The time limit to make a claim will go up from three months to six months.

Taking effect in December 2026

Mandatory Seafarers’ Charter starts

There will be improved terms around health and safety, pay, job security and rest breaks.

Taking effect in January 2027

Unfair dismissal changes

Reduction of unfair dismissal period to six months, applying to dismissals from January 1 2027, and removing the cap on compensatory awards for unfair dismissals.

Fire and rehire practices will automatically be deemed as unfair dismissal.

Taking effect in 2027

Increased dismissal protections for pregnant women and new mothers

Including mothers returning from maternity leave.

Extending blacklist protections

Laws will be extended to protect trade union members from discrimination and ‘blacklisting’.

Reasonable steps for sexual harassment protection

The law will identify what ‘reasonable steps’ means when it comes to preventing sexual harassment, following the October 2026 changes.

Action plans for gender equality and menopause

The aforementioned voluntary action plans will become mandatory.

Industrial relations framework

A new framework will be introduced to help employers and trade unions work together.

Regulation of umbrella companies

The definition of agencies will be broadened to include umbrella companies, allowing enforcement of rules by relevant bodies.

Collective consultation threshold on collective redundancy

Employers will need to consider the number of redundancies across a whole organisation rather than solely individual workspaces. The currently rules only affect individual workspaces.

Flexible working

If you as an employer reject a flexible working request, you’ll have to state the reasons from a list of eight acceptable reasons and explain why you believe the refusal is reasonable.

Bereavement leave including pregnancy loss

It’s unclear at this point whether it will be paid or unpaid.

Ending ‘exploitative use’ of zero hours contracts

Zero or low-hours workers can get guaranteed hours if they choose to. They’ll also have a right to be paid if a shift is cancelled, moved to another date or cut short by an employer. Employers will need to give reasonable notice of shifts and changes to said shifts.

Electronic and workplace balloting for recognition and derecognition ballots

I feel unprepared for the changes

You’re far from alone. Research from Commercial Services Group shows that 64 per cent of employees in small and medium-sized businesses say they are aware of the Act, paving the way for compliance failures and contract delays. Meanwhile, 36 per cent report experience of zero-hours contracts, highlighting how much change smaller employers will need to take on to meet the new rules.   

Rob Boyles, group chief finance officer at Commercial Services Group, said: “Employment reforms are no longer siloed HR issues, they are overlapping with public sector procurement. If gaps in SME compliance are not addressed, it could carry costly implications through delayed contracts and failed audits. Realistically, those risks are passed straight into public-sector contracts, making it harder for contracting authorities to meet the expectations set out in the National Procurement Policy Statement. 

“With SMEs playing such a vital role in delivering public services, supporting them to understand and implement these changes is essential to the resilience and reliability of public-sector supply chains. Now is the time to start reaching out for support revising policies and modernising contracts.  

“If employers act early, compliance could turn into a strategic advantage, positioning their businesses as a fair and transparent employer.”  

Read more

Employment Rights Bill – what’s in the legislation? – Labour’s Employment Rights Bill has officially received Royal Assent. Here’s what it means for your small business

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Anna Jordan

Anna is Senior Reporter, covering topics affecting SMEs such as grant funding, managing employees and the day-to-day running of a business.