Employment Rights Act 2025 - Key Changes Explained (and What They Mean for You)
1. Unfair dismissal – qualifying period reduced to 6 months
When: 1st January 2027
Currently, employees need 2 years’ service to claim unfair dismissal. This will reduce to 6 months.
Existing day-one protections, including protection against discrimination and automatically unfair dismissal, will continue to apply.
WHAT THIS MEANS FOR YOU
• Your probation period becomes critical
• You will need to manage performance issues much earlier
• Poor or rushed dismissals will carry much higher risk
2. Fire and rehire – effectively banned in most cases
When: January 2027 — exact date to be confirmed
Dismissing employees and re-engaging them on worse terms will become automatically unfair in most situations.
There are very limited exceptions (e.g. genuine financial distress), and these will be tightly controlled.
WHAT THIS MEANS FOR YOU
• You can no longer rely on “fire and rehire” to force contractual changes
• You’ll need stronger consultation and agreement processes
• Contract wording and flexibility clauses become more important
3.Zero-hours contracts – new rights to guaranteed hours
When: Expected during 2027 — detailed timing to be confirmed
Zero-hours contracts are not being banned, but workers will gain rights to contracts reflecting the hours they regularly work. In addition to this, there is a right to reasonable notice of shifts and a right to payment where shifts are cancelled, moved or shortened at short notice.
WHAT THIS MEANS FOR YOU
• Less flexibility in staffing
• Potential increase in fixed wage costs
• Need to monitor working patterns and contracts more closely
4. Collective redundancy – strengthened consultation rules
When: 2027 (further change expected in 2027 – the law has been proposed, but is not yet in force and does not have a confirmed implementation date)
In addition to the changes already made in April 2026, the Act strengthens collective consultation requirements and introduces an organisation-wide redundancy threshold, making it harder to avoid formal consultation processes.
WHAT THIS MEANS FOR YOU
• More formal consultation obligations, even for smaller restructures
• Increased risk if processes are not followed correctly
• Greater need for planning before making redundancies
5. New right to bereavement leave (including unpaid)
When: Expected 2027
There will be a broader statutory right to bereavement leave (beyond current parental bereavement provisions).
WHAT THIS MEANS FOR YOU
• You’ll need a clear bereavement policy
• Managers will need guidance on handling sensitive situations
• More consistency required in how leave is granted
6. Stronger protections for pregnant employees
When: 2027
Protections against dismissal for pregnant employees and new mothers will be strengthened.
What this means for you:
• Higher risk around dismissals during pregnancy or shortly after return
• Need for very careful, well-documented decision-making
• Greater focus on fair treatment and adjustments
7. Flexible working – strengthened “day one” right
When: 2027 — exact date to be confirmed
The existing right to request flexible working (already a day one right) will be strengthened, placing more responsibility on employers to properly consider requests.
WHAT THIS MEANS FOR YOU
• Requests will be harder to refuse without strong justification
• You’ll need a clear, consistent process
• Managers will need confidence in handling requests
8. Employment Tribunal claims – time limits increasing
When: 1st October 2026
The time limit for bringing a claim is expected to increase from 3 months to 6 months.
ACAS Early Conciliation requirements will continue to apply. Different rules apply to certain claims and to breach-of-contract claims in Scotland.
WHAT THIS MEANS FOR YOU
• Issues can come back much later
• Longer period of uncertainty after employment ends
• Even more importance on keeping clear records
9. Day one family leave rights
In force: April 2026
Employees are now entitled to paternity leave and unpaid parental leave from day one of employment, removing the previous service requirement.
WHAT THIS MEANS FOR YOU
• Employees can access family-related leave much earlier
• You will need to manage operational impact from new starters taking leave
• Policies and processes should be updated to reflect the removal of qualifying periods
10. Statutory Sick Pay – wider access and earlier payment
In force: April 2026
Statutory Sick Pay is being reformed so that:
• Payment starts from day one of absence (instead of day four)
• The lower earnings limit is removed, meaning more employees qualify
WHAT THIS MEANS FOR YOU
• Increased cost exposure, particularly in small teams
• Greater need for effective absence management
• More employees will be eligible for sick pay than before
11. Bereaved Partner’s Paternity Leave
In force: April 2026
A new right has been introduced allowing employees to take leave where a partner dies following childbirth or adoption.
What this means for you:
• You will need to ensure your policies reflect this entitlement
• Managers should be supported to handle these situations sensitively
• Clear processes will help ensure consistency during difficult circumstances
12. Stronger duty to prevent sexual harassment
When: October 2026 (expected – the law has been proposed, but is not yet in force and does not have a confirmed implementation date.)
Employers will be under a strengthened legal duty to take “all reasonable steps” to prevent sexual harassment, including harassment from third parties such as customers, clients or suppliers.
WHAT THIS MEANS FOR YOU
• Having a policy alone will not be enough
• You will need to demonstrate proactive steps (e.g. training, clear reporting routes, culture)
• Increased legal risk if preventative measures are not in place
13. Unpaid bereavement leave for pregnancy loss (before 24 weeks)
Expected: 2027
A new right is expected to be introduced allowing employees to take unpaid bereavement leave following pregnancy loss before 24 weeks.
This recognises the impact of early pregnancy loss and provides employees with time away from work to grieve.
What this means for you:
• You will need to ensure your policies reflect this entitlement
• Managers should be supported to handle these situations sensitively and appropriately
• A consistent approach will be important to avoid any perceived unfairness or risk
What This Means Overall for Small Businesses
The direction of travel is clear:
• More employee rights
• More scrutiny on employer decisions
• Less room for informal or ad hoc approaches
For small businesses in particular, the biggest risks will be:
• Poorly handled dismissals
• Lack of documentation
• Managers not understanding the rules
What Should You Be Doing Now?
You don’t need to implement everything overnight, but you should start preparing:
• Review your contracts and policies
• Tighten up probation and performance processes
• Train managers on handling issues properly
• Ensure consistent, documented decision-making
Final Thought
These changes are significant, but they don’t have to be overwhelming. With the right processes in place, you can stay compliant while still running your business effectively.
If you’d like support reviewing your documents or understanding how these changes apply to your business, feel free to get in touch — we’d be happy to help.
For professional HR support tailored to your business, get in touch today.
📞 +44 7733 373517
📩 gill@humantouchhrsolutions.co.uk