As we settle into 2026, employers face what is arguably the most significant overhaul of employment law in a generation with the Employment Rights Act 2025 (‘ERA 2025’).
After months of Parliamentary debate and voting, ERA 2025 received Royal Assent on 18 December 2025. This far-reaching reform of workers’ rights cannot be deferred until the new financial year. The phased implementation of its provisions has already begun and continues throughout 2026 and 2027.
Employers need to proactively review their employment contracts, policies and internal procedures to ensure that they remain legally compliant. Failure to act now may expose businesses to increased legal risk, Employment Tribunal claims and avoidable costs and disruption.
Timetable of Implementation of Key ERA 2025 Provisions
Whilst some provisions are subject to regulations, secondary legislation and consultation outcomes, ERA 2025 envisages the following implementation timetable:
February 2026
- Enhanced industrial action protections.
- Dismissal for taking part in industrial action is treated as automatically unfair and protected beyond the previous 12-week limitation.
April 2026
- Statutory Sick Pay (SSP) becomes payable from day one and the lower earnings limit is abolished.
- Day-one rights to paternity and unpaid parental leave.
- Fair Work Agency launches to enforce key employment rights.
- Enhanced whistleblowing protections for protected disclosures regarding sexual harassment.
- Doubling maximum collective redundancy protective awards from 90 to 180 days’ pay.
- Simplification of trade union recognition processes and electronic and workplace balloting reforms.
October 2026
- Employment Tribunal time limits extended from three months to six months.
- ‘Fire and rehire’ may be treated as automatically unfair dismissal in most cases.
- Employers are liable for harassment by third parties unless ‘all reasonable steps’ are taken.
- Tipping policies must include worker consultation.
- Extended protections against detriment for those participating in industrial action.
- Requirement to inform workers of their right to join a trade union.
- Strengthening of trade unions’ right of access and new rights and protections for trade union representatives
January 2027 onwards
- Unfair dismissal qualifying period reduced from two years to six months.
- Further reforms on family leave, bereavement leave and flexible working are expected.
- Rights relating to zero hours, low hours and agency contracts including requirement to offer guaranteed hours reflecting their usual working hours and enhanced notice and compensation entitlements if shifts are changed.
- Changes to collective consultation thresholds in collective redundancy situations.
Each of these implementation phases will raise distinct compliance and risk management issues, which we will explore in more detail in future updates.
What This Means for Your Business
ERA 2025 does not introduce a single disruptive change, but rather a series of interconnected reforms that materially increase employment risk if not managed proactively. The cumulative effect of ERA 2025 is a move away from flexibility based on service thresholds and contractual discretion, towards greater emphasis on procedural fairness, consultation and enforcement.
Employers who treat the Act as a compliance exercise at the point of enforcement are likely to face avoidable claims, regulatory scrutiny and operational disruption. Those who engage early, audit existing practices and plan strategically will be better placed to adapt with minimal impact. In practical terms, employers should prioritise:
- Reviewing contracts to ensure they do not rely on outdated qualifying periods or flexibility clauses.
- Updating disciplinary, redundancy and consultation procedures.
- Strengthening harassment prevention frameworks, including third-party risk.
- Reassessing workforce models involving casual, agency or variable-hours staff.
- Training managers on the increased legal risk attached to early dismissals and contractual changes.
Contact our Employment Solicitors in Oldham
The specialist Employment Law Team at O’Donnell Solicitors can provide you with tailored advice on navigating the Employment Rights Act 2025 and ensuring your business is fully compliant.
We will be producing further articles drilling down into specific provisions of ERA 2025 throughout the year.
Whether you need help revising contracts, producing compliant policies, or implementing practical procedures, we are here to guide you every step of the way.
Phone: 01457 876 770
Email: kenneth.lees@odonnellsolicitors.co.uk
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