The Employment Rights Act 2025 marks the most significant reform of UK employment law in a generation. Receiving Royal Assent in December 2025, the Act introduces sweeping changes to worker protections, employer obligations, and labour market enforcement, with phased implementation across 2026 and 2027.
Designed to improve job security, fairness, and workplace standards, the Act reshapes how businesses hire, manage, and dismiss staff, while expanding rights for millions of workers across the UK.
This guide explains what the Employment Rights Act 2025 is, what has changed, when changes take effect, and what employers need to do now.
What is the Employment Rights Act 2025?
The Employment Rights Act 2025 is a major piece of UK legislation introduced by the Government to modernise employment law and strengthen worker protections. It responds to long-standing concerns around insecure work, unfair dismissal practices, workplace harassment, and weak enforcement of labour rights.
According to official UK Government policy documents, the Act aims to:
- Increase job security
- Promote fair treatment at work
- Strengthen trade union access and representation
- Improve enforcement of employment
Key changes introduced by the Employment Rights Act 2025
1. Unfair dismissal: Protection after six months
One of the most impactful reforms is the reduction of the qualifying period for unfair dismissal.
What’s changed:
- Employees gain protection from unfair dismissal after six months, reduced from the previous two-year requirement.
- This applies to most employees, subject to limited statutory exceptions.
Why it matters: Employers will need to ensure that dismissal procedures are fair, well-documented, and legally compliant much earlier in the employment relationship.
2. Zero-hours contracts: Guaranteed hours and compensation
The Act introduces new rights for workers on zero-hours and low-hours contracts, following Government commitments to tackle insecure work.
New protections include:
- The right to guaranteed hours based on regular working patterns
- Reasonable notice of shifts
- Compensation for shifts cancelled or changed at short notice
Impact on businesses: Employers relying on flexible labour models will need to review contracts, scheduling practices, and workforce planning.
3. “Fire and rehire” restrictions
The Employment Rights Act 2025 places strict limits on so-called “fire and rehire” practices.
Key rule:
- Dismissals linked to refusal to accept changes to core contractual terms are now automatically unfair.
Exception:
- Employers may rely on this route only where they can demonstrate genuine and severe financial hardship, as defined by Government guidance.
This significantly raises the legal risk for businesses attempting to impose contractual changes without proper consultation.
4. Workplace harassment and discrimination: Stronger employer duties
The Act introduces a proactive legal duty on employers to prevent workplace harassment.
New obligations include:
- A duty to take reasonable steps to prevent sexual harassment
- Protection from third-party harassment (e.g. clients or customers)
- A ban on confidentiality clauses (NDAs) that prevent disclosure of harassment or discrimination
These changes reinforce the Government’s stance that workplace safety and dignity are non-negotiable.
5. Trade union access and industrial action
Trade unions gain expanded rights under the Act, including:
- Simplified industrial action processes
- Greater access to workplaces for recruitment and engagement
- Stronger protections against unfair treatment linked to union activity
Employers should expect increased union engagement, particularly in large or unionised workplaces.
6. Family leave: Day-one paternity rights
Paternity leave becomes a day-one employment right, removing previous service length requirements.
This aligns with broader Government policy aimed at improving work-life balance and family support.
7. Statutory Sick Pay (SSP) from day one
Under the Employment Rights Act 2025:
- Statutory Sick Pay is payable from the first day of illness
- Waiting days are removed
This change improves income security for workers but increases short-term cost exposure for employers.
8. Creation of the Fair Work Agency
A new Fair Work Agency is established to oversee labour market enforcement.
Its remit includes:
- Enforcing employment rights
- Investigating non-compliance
- Issuing penalties and recovery orders
The Agency consolidates existing enforcement functions into a single, more powerful body.
Implementation timeline: When do changes take effect?
The Act is not implemented all at once.
- 2026: Initial reforms come into force, following Government consultations
- 2027: Remaining provisions, including enforcement mechanisms, are phased in
The Government has confirmed that secondary legislation and guidance will clarify detailed obligations before each phase.
Why the Employment Rights Act 2025 matters
For workers, it provides:
- Earlier protection
- More predictable working conditions
- Stronger safeguards against unfair treatment
For employers, it creates:
- Higher compliance expectations
- Greater legal risk for poor HR practices
- A clear need for updated contracts, policies, and procedures
How GLP Solicitors can help business
At GLP Solicitors, we help businesses navigate complex legal change with confidence.
Our Commercial Team specialises in:
- Commercial and Corporate Law
- Debt Collection
- Dispute Resolution
- Property Litigation
- Settlement Agreements
Whether you need to:
- Review employment practices
- Manage workforce disputes
- Negotiate settlement agreements
- Protect your business from legal risk
We’re here to help you deal with any legal matter.
Contact GLP Solicitors today to ensure your business is fully prepared for the Employment Rights Act 2025 and the changes ahead: www.glplaw.com/contact/