The Employment Rights Act 2025 is set to deliver many of the government’s manifesto commitments aimed at strengthening the rights of workers and employees. This legislation represents the most significant overhaul of employment rights in a generation.
In July 2025, the government published an implementation roadmap , outlining the expected timeline for each measure in the Bill.
The Employment Rights Bill was granted Royal Assent on 18 December 2025 and has now been enacted as the Employment Rights Act 2025 (ERA 2025). The sole substantive provision to take effect immediately was the repeal of the Strikes (Minimum Service Levels) Act 2023. Further measures relating to industrial action are scheduled to come into force two months after Royal Assent, from 18 February 2026. Many provisions of the ERA 2025, however, remain subject to further consultation and the introduction of secondary legislation before they can be fully implemented.
Our tracker below has been updated to reflect these latest developments:
Tracker of Key Provisions
| Topic | Planned Changes | How will the new law work? | Potential Risks if Ignored | Anticipated Date |
|---|---|---|---|---|
| Day-one unfair dismissal | The government had initially planned to abolish the two-year qualifying period for unfair dismissal protection and replace it with a ‘day one’ right, supported by the introduction of a statutory probationary period. To break the resulting deadlock, the ERA 2025 shortens the current two-year qualifying period to six months. The plan to introduce a statutory probationary period has also been dropped. The ERA 2025 also removes the power for the government to amend the qualifying period by regulations, so that any future changes will have to be made by statute. To further strengthen employee protection, the statutory cap on unfair dismissal compensatory awards (which is currently set at the lower of 52 weeks’ pay, or £118,223) will be removed. There have been significant concerns raised about the removal of the cap, so the government has agreed to conduct an impact assessment on this measure before definite removal. | All workers will gain protection from unfair dismissal once they reach six months of employment. | Employers will face greater difficulty dismissing employees with six months’ service or more, as they will be required to establish a fair reason and follow a fair procedure. Failure to update contracts and implement robust and efficient recruitment and probation procedures may leave employers vulnerable to claims. The removal of the cap on the unfair dismissal compensatory award providing a much greater incentive for employees to litigate. In preparation of these likely changes, employers should consider taking steps now to enhance their recruitment procedures and strengthen their procedures for new hires during the probationary period. Employers will also need to review the probationary periods in their contracts for new hires, to ensure that they are suitable in duration. | 1 January 2027. |
| Family Leave Rights | The ERA 2025 creates day-one rights to paternity leave and unpaid parental leave. The current requirement for paternity leave to be taken before shared parental leave will be removed. A statutory right to at least one week of unpaid bereavement leave on the death of a close relative or pregnancy loss before 24 weeks (including IVF embryo transfer loss) will also be introduced as a day one right. | Employers will need to update leave policies and ensure management are aware that these entitlements apply from the first day of employment. Since statutory bereavement leave will be unpaid, its introduction will have limited impact. | Applying old eligibility rules could lead to a risk of discrimination or automatic unfair dismissal claims, especially in sensitive situations such as pregnancy loss or child bereavement. | Paternity leave and unpaid parental leave – April 2026. Bereavement leave – 2027. |
| Day-one Statutory Sick Pay (SSP) | The ERA 2025 will broaden rights to SSP by making it payable from the first day of sickness absence and removing the lower earnings limit for eligibility. The ERA 2025 will also introduce a taper to the current SSP rate (currently £118.75 per week) for those earning below the lower earnings limit, so that they are entitled to whichever is the lower of 80% of their average weekly earnings or the current SSP flat rate. | Employers must ensure all eligible employees receive SSP from day one, regardless of income level. | Non-compliance could lead to backdated claims, penalties from HMRC, and reputational harm. In addition to this, employers that only provide SSP might see an increase in short-term sickness absence, given that employees will not lose out on as much pay if they take a few days off sick. Employers should therefore review their sickness / attendance management policies and consider whether absence trigger levels are set appropriately. | April 2026. |
| Extension of Limitation Periods | The ERA 2025 will extend the limitation date to bring most employment claims to six months. | The time limit for workers to bring claims in the employment tribunal will increase from three to six months. | With the increase in tribunal time limits, employers may face an increase in tribunal claims. However, longer timeframes could also reduce impulse litigation. | October 2026. |
| Flexible Working | The ERA 2025 adapts and builds on the April 2024 reforms to flexible working. An employer will only be permitted to refuse a flexible working request if: 1. It considers that specified business ground(s) apply; and 2. If it is “reasonable” for the employer to refuse the request on that ground(s). | Regulations will specify the steps an employer must take in order to comply with the requirement to consult with an employee before rejecting a flexible working request. Where the employee’s flexible working request is refused, the employer will be required to notify the employee of the ground(s) for the refusal and explain why it considers it “reasonable” to refuse the request. | The tribunals will also have a new power to consider a claim that the employer has “failed to act” in accordance with the new requirements. This appears to give the tribunals the power to check the employer’s rationale and consider the “reasonableness” of refusals. Introducing a reasonableness test for refusing flexible working requests will ultimately alter the balance and make refusals more difficult for employers going forward. | 2027. |
| Duty to prevent Sexual Harassment | The ERA 2025 proposes to strengthen the duty on employers to prevent sexual harassment at work by requiring them to take “all reasonable steps”, (as opposed to “reasonable steps” which has been the case since the preventative duty came into force on 26 October 2024). | Employers will need to demonstrate that they have taken all reasonable preventative measures, and separate regulations will set out examples of what could constitute “all reasonable steps”, expected in 2027. | Failure to comply with the preventative duty can lead to 25% uplift in compensation where an employee succeeds in a sexual harassment claim. Failing to act could potentially make it harder for employers to successfully defend sexual harassment claims, particularly if the employer is seen to have ignored cultural or systemic issues. | October 2026. |
| Third Party Harassment | The ERA 2025also introduces a requirement for employers to prevent harassment by third parties (covering not just sexual harassment, but all types of harassment under the Equality Act 2010). | The employer will be liable if a third party harasses an employee in the course of their employment with the employer, and the employer failed to take all reasonable steps to prevent the third party from doing so. | Employers will need to assess the risk of third-party harassment within their organisation and identify any further steps they could take to prevent such harassment. Policies must proactively address workplace harassment, and staff should receive training. | October 2026. |
| Fire and Rehire | It will become automatically unfair to dismiss an employee for refusing to agree to a change to their terms and conditions of employment if the change constitutes a “restricted variation” (fire and rehire), or to dismiss an employee and hire another employee on amended terms to carry out the same or substantially the same work if the change constitutes a “restricted variation” (fire and replace). Restricted variations cover: 1. Reductions in pay; 2. Variations to the measures that determine pay which is based on work and/or performance; 3. Pensions; 4. Number of hours required to work; 5. Changes to times or durations of shifts; 6. Reductions in time off entitlement; 7. Any other variation as set by regulations. There is a very narrow exception to this provision – if the employer can demonstrate that the change in terms was necessary to alleviate serious financial difficulties that were likely to affect the ability to run the business as a going concern and could not reasonably have been avoided. | Employers must consult meaningfully and explore alternatives before changing terms. The distinction between restricted and non-restricted variations means that some important changes (such as changes to an employee’s place of work, or modernisation of job duties) will not be automatically unfair. However, if changes are imposed via dismissal and re-engagement, employers should be aware that the new legislation must be followed. | A new statutory Code of Practice on fire and rehire/dismissal and re-engagement came into force on 18 July 2024, but this will be enhanced by further restrictions in the ERA 2025. Ignoring the Code can result in a 25% uplift in any compensation awarded at tribunal and potential reputational damage. | October 2026. |
| Industrial Action | The ERA 2025 repeals the Strikes (Minimum Service Levels) Act 2023, which had permitted employers in certain key sectors (such as health, transport, and fire and rescue services) to impose minimum service levels during industrial action. This change took effect on Royal Assent (18 December 2025). Many requirements imposed by the Trade Union Act 2016 are also being repealed or amended by the ERA 2025, two months after Royal Assent: – The requirement for at least 40% of those entitled to vote in industrial action ballots in important public services, to vote in favour of industrial action will be repealed. – The amount of information unions must include in ballot notices and industrial action notices provided to employers will be reduced. – The notice of industrial action that unions must provide to employers will be reduced from the current 14 days to 10 days. – The period for which a ballot in favour of industrial action provides a valid mandate is to be increased from six months to 12 months. – The requirement for union supervision of picketing in order for industrial action to be protected is being repealed. The 50% turnout requirement in industrial action ballots in all sectors will also be repealed. The government has also published: – A draft revised Picketing Code of Practice to reflect the removal of the requirement for unions to appoint a picketing supervisor. – A draft revised Code of Practice on industrial action ballots and notice to employers which reflects the changes to industrial action support requirements and the simplification of notices of industrial action which must be given by the union to employers. | The provisions of the Strikes (Minimum Service Levels) Act 2023 have never been used, so its removal will not make a difference, however, for example, getting only 10 days’ notice of strike action rather than 14 does give employers less time to put contingency plans in place. | Although the removal of ballot thresholds makes it easier for unions to secure sufficient support for industrial action, any increase in strike action will depend far more on the wider economic and industrial climate than on the legislation itself. | 18 February 2026. |
| Trade Union and Strikes | The Bill imposes provisions that aim to strengthen the rights of trade unions. Informing workers: Employers will have a new duty to inform workers of their right to join trade union, which is to be included in the employment contract/statement of particulars. Right of access: The ERA 2025 aims to give unions a right of access to workplaces to allow them to meet, represent, recruit or organise workers and to facilitate collective bargaining. Recognition: At present, an application for statutory trade union recognition may only be accepted where (1) at least 10% of workers in the proposed bargaining unit are union members, and (2) a majority of those workers are likely to support recognition. The ERA 2025 empowers the government to reduce the existing 10% membership threshold by regulations to any level between 2% and 10%, and removes entirely the requirement to demonstrate that a majority of workers are likely to favour recognition. Time off for union officials and reps and protection from dismissal and detriment: The ERA 2025 introduces a requirement for employers who permit union officials and learning representatives to take such time off to provide them with facilities for carrying out their duties/activities. It also introduces a new right to a reasonable amount of paid time off, and the provision of facilities, for trade union equality representatives. The ERA 2025 also establishes a right for workers not to be subjected to any detriment by their employer where the sole or principal purpose is to prevent or deter the worker from taking protected industrial action. Blacklisting: The ERA 2025 strengthens the prohibition on blacklisting by giving the government power to introduce regulations prohibiting the use, sale or supply of lists of union members or people who have taken part in trade union activities for the purposes of discrimination. Check off: “Check-off” refers to the practice whereby employers deduct trade union subscriptions from workers’ pay and remit those sums to the union. In the public sector, this is currently permitted only where workers have the option to pay subscriptions by alternative means, and the union makes reasonable payments to the employer to cover the administrative costs of operating check-off. The ERA 2025 will repeal these restrictions on check-off. Transitional and saving arrangements for the trade union measures of the Employment Rights Act 2025 are also due to come into force on 18 February 2026. | The Government’s plans are likely to mean trade unions will have a much greater role to play in employee relations. As a minimum, they will mean it is easier for trade unions to call strikes (and other industrial action) and harder for employers to manage strikes. They will also mean it is easier for trade unions to seek recognition. If an employer fails to provide a statement as required, a worker will be able to bring a claim in the employment tribunal and may be entitled to an award of up to two weeks’ pay. Union officials and representatives will be able to complain to an employment tribunal if the employer fails to comply with the requirements in the ERA 2025, and the tribunal will have the power to award compensation. Furthermore, the extension of unfair dismissal protection means that should an employer wish to dismiss an employee during long-running industrial action, they will have to take extra care to demonstrate that the dismissal is for reasons other than the employee’s participation in the industrial action. | The right of access will give trade unions significantly greater visibility among workers. In addition, proposals requiring employers to provide workers with a statement of their right to join a trade union, together with the simplification of the trade union recognition process, have the potential to increase union presence across many workplaces. Informing and reminding workers of their right to join a trade union may, in turn, lead to increased interest in union membership. All businesses should review and update their employment contracts to comply with the new requirement to provide a statement of trade union rights and for those that have recognised trade unions, you should prepare for the implications of lower threshold for statutory recognition, and ensure management and HR understand the implications of the new protections for workers engaging in lawful industrial action, particularly in terms of avoiding unlawful detriment. | Informing workers – October 2026 Right of access – October 2026 Recognition – April 2026 Time off for union officials and reps and protection from detriment and dismissal – October 2026. Blacklisting – 2027. Check off – 18 February 2026. |
| Whistleblowing | The ERA 2025 will make express provision confirming that disclosure of a concern about sexual harassment will amount to a protected disclosure for the purposes of whistleblowing protection. The roadmap indicates that this change is expected to take effect in April 2026. | To qualify for whistleblower protection, a worker who makes a disclosure must reasonably believe that they are acting in the public interest and the disclosure must constitute (1) a criminal offence, (2) a failure to comply with a legal obligation, (3) a miscarriage of justice, (4) a danger to health and safety, (5) damage to the environment, or (6) covering up wrongdoing in relation to one of those things. | This provision will likely improve employee awareness of whistleblowing protections and may increase the likelihood of claims. Employers will need to take additional care when dismissing or disciplining an employee who has previously raised a complaint or grievance about sexual harassment at work; even if the reason for dismissal / discipline is entirely unrelated. In addition, employers should consider implementing policies and training to ensure that protected disclosures are not left unconsidered after initially being raised by an employee. | April 2026. |
| The Fair Work Agency | The ERA 2025 gives the government power to create a single labour market enforcement body, which will be known as the Fair Work Agency (FWA). | The FWA will take over the functions of the various existing enforcement bodies, covering minimum wage, SSP, modern slavery, and it will also be given responsibility for enforcing rights to holiday pay. | Given the complexity of certain areas of law that fall within the FWA’s remit (holiday pay in particular), there is a real risk that employers could face enforcement action for inadvertent non-compliance. | April 2026. |
| Holiday pay record keeping requirement | The ERA 2025 includes a provision, which, if enacted, will require employers to keep records demonstrating their compliance with workers’ rights to paid annual leave under the Working Time Regulations 1998. This record keeping is for a period of 6 years. Failure to comply will amount to a criminal offence (punishable by fine). This is not mentioned in the government’s roadmap, but it is expected to take effect in 2026. | This is a large administrative burden on employers. The law on holiday pay is extremely complicated so employers must ensure they are comfortable with not only the record keeping requirement, but also the way in which they calculate an employee’s holiday pay entitlement. | If it is found that an employer has failed to keep adequate records, they may be threatened by criminal liability and be subject to pay a monetary fine. | 2026. |
| Collective redundancy | The ERA 2025 contains provisions designed to tighten up and reform the law relating to collective redundancies, meaning: – the current threshold of 20 or more dismissals in a 90-day period will be retained where dismissals are proposed at a single establishment; or – a minimum threshold of job losses (to be specified in regulations) across more than one establishment/site within 90 days. This reform is not expected to come into force until 2027. The ERA 2025 also doubles the maximum penalty for non-compliance with collective consultation obligations from 90 to 180 days’ gross pay per affected worker. This change is expected to occur in April 2026. | Much is still unknown about how the trigger will operate for multi-establishment redundancies. However, a second government amendment confirms that, where multi-site collective consultation is required, whilst this must be carried out with all appropriate representatives, it need not be carried out with them all together or with a view to reaching the same agreement with all of them. | If the penalty for non-compliance with collective consultation obligations rises from 90 days to 180 days’ gross pay per employee, employers need to bear in mind the associated risks and costs of non-compliance with legislation. The tightening of the thresholds regarding collective redundancies should also be in the forefront of employer’s minds when they are carrying out redundancy exercises. | Consultation threshold – 2027. Maximum protection award – April 2026. |
| Zero hours | Under the ERA 2025, there will be a new right for zero, low or irregular hours workers to a “guaranteed hours offer” which reflects the number of hours they have regularly worked over an, as yet unspecified, reference period (which is expected to be 12 weeks), provided their work history satisfies certain conditions in respect of number, regularity or otherwise of the working hours. There are new provisions designed to give workers reasonable notice of shifts and to compensate them when shifts or working times are cancelled by an employer without reasonable notice. As indicated by the roadmap, these changes are due to be implemented in 2027. | These provisions are a “right to receive” guaranteed hours offer. This requires employers to offer guaranteed hours to eligible workers. | It will be automatically unfair to dismiss an employee if the sole or principal reason for dismissal concerns various rights relating to guaranteed hours offers, and workers will be protected from being subjected to a detriment relating to such offers. In practice, these provisions may result in a reduction in employers’ use of zero and low hours contracts, because the complexity of the requirements will make it less attractive for employers to operate such contracts. | 2027. |
| Equality action plans | The ERA 2025 contains provisions which allow for regulations requiring public sector and large (250+ staff) employers to publish equality action plans no more than once a year. | An equality action plan must show the steps that the employer is taking in relation to their employees regarding gender equality, including addressing the gender pay gap and supporting employees going through the menopause. | Those employers who currently limit their gender pay gap reporting to the minimum legal requirement may wish to consider what their action plan might look like in preparation for when this requirement takes effect. | Expected mandatory in 2027, with introduction on a voluntary basis from April 2026. |
| Confidentiality provisions | The ERA 2025 provisions which will render any confidentiality/non-disclosure provision in an agreement between an employer and a worker void and unenforceable, if the provisions purport to prevent a worker from making an allegation or disclosing information relating to work-related harassment and discrimination. | The prohibition will apply both where the worker themself is a victim of discrimination or harassment and where they are a witness to discrimination or harassment. Regulations will set out circumstances in which NDAs concerning relevant discrimination or harassment can be used. More detail in relation to this is still unknown. | Much of the risk imposed on employers will depend on how regulations define ‘excepted agreements’ which the government has confirmed it will consult on. Ultimately, if implemented, it is likely that employers will see an increase in litigation – there is less incentive to settle potential harassment/discrimination claims if they do not require the individual to keep the details confidential. | Late 2026 or during 2027. |
| Umbrella Companies | The ERA 2025 introduces a formal definition of “umbrella companies” as entities that employ individuals and supply their labour to third-party end clients—or manage pay on behalf of such individuals. These are now explicitly treated as employment businesses. Separately, in the Autumn Budget 2024, the government confirmed plans to shift responsibility for operating PAYE from umbrella companies to end clients, with effect from April 2026. | This means that umbrella companies will fall under the oversight of the Employment Agency Standards Inspectorate and later the Fair Work Agency. This essentially brings them into the same regulatory framework as recruitment agencies. | As workers engaged through umbrella companies will now likely enjoy the same protections as those working via recruitment agencies, end clients may reassess the viability of using umbrella arrangements. At the same time, umbrella companies will need to adapt their practices to ensure compliance with the new regulatory framework. | 2027. |
