Employment Rights Act 2025: The Changes That Affect You Right Now

The Employment Rights Act 2025 is the most significant piece of employment legislation since the Employment Rights Act 1996. But unlike a single "big bang" change, the reforms are being rolled out in phases across 2026 and 2027. Some provisions are already in force. Others are months away. Here is a clear timeline of what has changed, what is changing next, and what it means for workers and employers.

What Took Effect in April 2026

The first wave of reforms came into force on 6 April 2026. These are now live and enforceable:

• Statutory Sick Pay (SSP) from day one: The three waiting days are abolished. SSP is payable from the first day of sickness absence. The lower earnings limit is also removed — every employee now qualifies regardless of how much they earn. This is a major change for part-time, agency, and zero-hours workers who previously received nothing.
• Paternity leave from day one: The 26-week qualifying period for paternity leave is abolished. New fathers and partners are entitled to paternity leave from their first day of employment. A new bereaved partner's leave provision also takes effect: if the mother or primary adopter dies within 52 weeks of birth or placement, the surviving partner can take the remaining leave.
• Unpaid parental leave from day one: The one-year qualifying period for unpaid parental leave is removed. All employees can request up to 18 weeks' unpaid leave per child from day one.
• The Fair Work Agency (FWA): A new state enforcement body that can investigate employers, issue compliance notices, and impose penalties for breaches of workers' rights. Previously, enforcement was almost entirely dependent on individual employees bringing tribunal claims at their own risk and expense. The FWA can act on its own initiative or in response to worker complaints.
• Whistleblower protection for sexual harassment: Reporting sexual harassment is now explicitly a protected disclosure under the Public Interest Disclosure Act 1998. Workers who report harassment — whether as victims or witnesses — are protected from dismissal and detriment.

What Is Coming in October 2026

The second wave of reforms takes effect on 1 October 2026:

• Fire and rehire restrictions: Dismissing an employee in order to re-engage them on worse terms will become automatically unfair. The practice known as "fire and rehire" — where employers dismiss staff and immediately offer them new contracts with reduced pay, fewer benefits, or worse conditions — will be unlawful except in cases of genuine financial emergency where the employer can demonstrate that the business would otherwise fail. This closes a loophole that was heavily exploited during and after the pandemic.
• Third-party harassment duty: Employers will be required to take reasonable steps to prevent harassment of their employees by third parties, including customers, clients, and members of the public. Failure to do so will be a breach of the Equality Act 2010. This extends the employer's duty of care beyond the actions of their own staff.

What Is Coming in January 2027

The third and final wave arrives on 1 January 2027, and it contains the two most transformative provisions:

• 6-month unfair dismissal qualifying period: The qualifying period for ordinary unfair dismissal claims drops from 2 years to 6 months. Employees who start work on or after 2 July 2026 will gain protection on 1 January 2027. For employees already in post, the new threshold applies to their accrued service — meaning millions of workers with between 6 months and 2 years' service will gain immediate protection. The government has indicated a lighter-touch process may apply for dismissals during an initial probationary period, but the full protections apply from 6 months.
• Uncapped unfair dismissal compensation: The compensatory award for unfair dismissal, currently capped at the lower of 52 weeks' gross pay or £118,223, will be abolished entirely. Tribunals will be free to award whatever amount they consider just and equitable. This brings unfair dismissal in line with discrimination claims and dramatically increases the financial risk for employers who dismiss without a fair reason or fair process.

What This Means for You

If you are an employee, the Employment Rights Act 2025 gives you significantly stronger protections at every stage of employment. Day-one rights to sick pay, paternity leave, and parental leave mean you are no longer penalised for changing jobs. The Fair Work Agency means you do not have to enforce your rights alone. And from January 2027, the 6-month qualifying period and uncapped compensation mean that dismissing someone unfairly carries real consequences from early in the employment relationship.

If you are an employer, the message is clear: fair processes matter more than ever. Review your contracts, update your disciplinary and probation procedures, and ensure your managers understand the new rules. The cost of getting it wrong is about to rise significantly.

Check your specific situation using tools like Case Buddy, or contact ACAS for free guidance on how the changes affect your workplace.