The Employment Rights Act 2025 Summary

Changes:

• The two-year qualifying period for unfair dismissal claims will be removed.
• Unfair dismissal protection will become a right after 6 months of being in a job.
• The limit on compensatory award for unfair dismissal will be removed. 

Changes:

• Employers will be liable for harassment from third parties, unless they have taken all reasonable steps to prevent it happening – this will apply to all types of harassment.
• Employers must take all reasonable steps to prevent sexual harassment. The law will specify what ‘reasonable steps’ means when preventing sexual harassment in 2027.
• Sexual harassment will become a ‘qualifying disclosure’ under whistleblowing law.

A change in law around non-disclosure agreements (NDAs) is also expected. This will void clauses that would prevent workers from alleging or disclosing work-related harassment or discrimination. The date of this change is not yet known.

Changes:

• If rejecting a flexible working request employers must state the reasons from a list of 8 acceptable reasons.
• Employers must also explain why they believe their refusal is reasonable. 

Changes:

• Paternity leave will become a ‘day one right’ allowing someone to give notice of leave from the first day of employment.
• Ordinary parental leave or unpaid parental leave will become a ‘day one right.’
• Restrictions on taking paternity leave after shared parenteral leave will be removed.
• Eligible fathers and partners will be able to take up to 52 weeks of unpaid bereaved partner’s paternity leave if the mother or primary adopter dies – they must take this leave within 52 weeks of the child’s birth (including surrogacy), adoption placement, or entry to Great Britain for overseas adoptions.
• Protections against dismissal for pregnant workers and those returning from maternity leave will be strengthened. 
• There will be a new right to statutory bereavement leave.

Changes:

• Fire and rehire – dismissing someone then rehiring them on worse conditions – will become an automatically unfair dismissal in most cases.

Changes:

• Action plans around menopause and gender pay gaps will become mandatory.

This will be introduced in a voluntary capacity in 2026 before becoming mandatory in 2027. 

Changes:

• Workers on zero-hour and low-hour contracts will get the right to guaranteed working hours, if they want them. 
• Employers must give reasonable notice of shifts and changes to shifts.
• Workers will have the right to be paid if a shift is cancelled, moved to another date or cut short by an employer.

Changes:

• Statutory sick pay (SSP) will be paid from the first day of illness, instead of the fourth day.
• The lower earnings limit will be removed.

Changes:

• The time limit for making a claim to an employment tribunal will increase to 6 months.

Changes:

• The time needed to give notice of industrial action has been reduced to 10 days.
• Picket supervisors are no longer required.
• Industrial action mandates have increased to 12 months.
• Industrial action and ballot notices have been simplified.
• Political fund rules have changed.
• The support threshold rule has been removed. 
• Public and private sector ballots now follow the same requirement.
• How a trade union can be recognised in a workplace will be simplified. 
• Trade union members will be able to vote electronically or in person in ballots for industrial action, union elections and other statutory ballots if the employer and trade union agree.
• The 50% turnout requirement for industrial action ballots will be removed. 
• Rules around ‘minimum service levels’ for strikes have been removed.
• Employers will have a duty to inform workers of their right to join a trade union.
• Rules on a trade union’s right of access to the workplace will be updated.
• A new right to reasonable accommodation and facilities for trade union representatives carrying out their duties will be introduced.
• A new right to time off for union equality representatives to carry out their duties will be introduced. 
• Laws that protect trade union members from discrimination and being ‘blacklisted’ will be extended.
• A new industrial relations framework, to help employers and trade unions work together, will be introduced.

An updated Code of Practice on trade union recognition supporting their recognition in the workplace is expected to come into force in October 2026. 

The Fair Work Agency (FWA) will be established on 7th April 2026 to:

• bring together existing enforcement bodies
• take on enforcement of other employment rights, such as holiday pay and statutory sick pay. 

• the repeal of the great majority of the Trade Union Act 2016, thereby simplifying requirements on trade unions, including in relation to industrial action and political funds  
• removing the 10-year ballot requirement for trade union political funds 
• simplifying industrial action notices and industrial action ballot notices 
• protections against dismissal for taking industrial action 
• employees that are newly eligible for ‘Day 1’ Paternity Leave and Unpaid Parental Leave can give notice

• the repeal of the levy that trade unions and employer associations pay to the Certification Officer

• collective redundancy protective award – doubling the maximum period of the protective award 
• ‘Day 1’ Paternity Leave and Unpaid Parental Leave
• whistleblowing – strengthening protections for workers who ‘blow the whistle’ on sexual harassment 
• Bereaved Partners’ Paternity Leave  
• Statutory Sick Pay (SSP) – removing the Lower Earnings Limit (LEL) and waiting period 
• action plans on gender equality and supporting employees through the menopause (voluntary) 
• menopause guidance 
• simplifying trade union recognition process

• the establishment of the Fair Work Agency

• electronic and workplace balloting for Statutory Trade Union Ballots

• bringing forward regulations to establish the Fair Pay Agreement Adult Social Care Negotiating Body in England 
• procurement – two-tier code 
• tightening tipping law 
• the duty to inform workers of their right to join a trade union 
• strengthening trade unions’ right of access 
• requiring employers to take ‘all reasonable steps’ to prevent sexual harassment of their employees 
• introducing an obligation on employers not to permit the harassment of their employees by third parties 
• introducing a power to enable regulations to specify steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment 
• unfair practices in the trade union recognition process
• new rights and protections for trade union representatives 
• extending protections against detriments for taking industrial action

• employment tribunal time limits
• Measures that will take effect in December 2026 
• commencement of the Mandatory Seafarers’ Charter

• commencement of the Mandatory Seafarers’ Charter

• reduction of unfair dismissal qualifying period to 6 months, for dismissals from 1 January 2027, and uncapping compensatory awards
• fire and rehire protections

• action plans on gender equality and supporting employees through the menopause (mandatory) 
• enhanced dismissal protections for pregnant women and new mothers  
• specifying steps that are to be regarded as ‘reasonable’, to determine whether an employer has taken all reasonable steps to prevent sexual harassment 
• extending blacklisting protections  
• industrial relations framework 
• regulation of umbrella companies 
• collective redundancy – collective consultation threshold 
• flexible working 
• bereavement leave including pregnancy loss 
• introduction of the right to guaranteed hours and the right to reasonable notice and short notice payments  
• electronic and workplace balloting for recognition and derecognition ballots