Are you prepared?


The Employment Rights Act 2025 introduces sweeping reforms that represent the most significant enhancement to workers’ rights in a generation, bringing major changes for every employer.

We’re here for you


There is a lot to keep up with – both in terms of the substance of the changes and when they are going to take effect.

You need a clear understanding of how these developments will impact on your organisation so that you can plan for and take steps to minimise risk.

In the following pages, you’ll find details about the changes and how we can guide and support you as you navigate your way through this complex piece of legislation.

Save it in your favourites and we’ll keep it updated with the developments as they happen.

Elaine Huttley


National Head of Employment

T: 44 (0)121 214 5434 M: +44 (0)7850 096 907 E: elaine.huttley@irwinmitchell.com

Highlights


In the lead-up to the general election in July 2024, the Labour party published its ‘Plan to Make Work Pay.’ This set out its plans for employment law reform.

Fast forward to October 2024 and the Labour government put its flagship policy – the Employment Rights Bill before parliament. It received Royal Assent on 18 December 2025.

The changes are wide-ranging and will impact each stage of the employment lifecycle, from recruitment right the way through to dismissal. It will affect each and every employer.

The government has already started to publish consultations and additional guidance which will explain how some of the changes will work. There is a lot to take in, and the measures will require planning ahead.

The good news is that the changes will not all come in at once. There will be a staged implementation with some measures not taking effect until 2027. Much of the detail is yet to come – think of it as the bones upon which secondary legislation will flesh out.

We’re here to do the heavy thinking for you.

We’re monitoring progress carefully. This guidance will help you keep on track and allow you to prioritise what steps you should take to comply with the law and manage its impact on your organisation.

At a glance, the timetable looks likes this (updated April 2026):

Change
What is changing?
Expected or implementation Date
Consultations
Additional resources
Trade Unions
Repeal of legislation requiring some sectors to ensure minimum service levels during strikes.
18 December 2025
Employment Talk podcast: The Employment Rights Bill unpacked: what it means for trade unions and industrial action
Trade Unions
Repeal of most of the Trade Union Act 2016, removal of industrial action support threshold, notice of intended strike action reduced to 10 days, validity of strike mandate increases to 12 months, and extended protection against dismissal for taking industrial action.
18 February 2026
Navigating Trade Union reform: are you ready?
Employment Talk podcast: The Employment Rights Bill unpacked: what it means for trade unions and industrial action
Trade Unions
Simplifying trade union recognition.
6 April 2026
Consultation on the revised code of practice during recognition and derecognition processes and proposals on unfair practices in electronic ballots (closed).
Employment Talk podcast: The Employment Rights Bill unpacked: what it means for trade unions and industrial action
Sexual harassment protected disclosures
Sexual harassment will become a qualifying disclosure for whistleblowing.
6 April 2026
Employment Talk podcast: April’s Employment Rights Act changes that you simply can’t ignore
Day one right to paternity leave and parental leave
Removal of length of service requirement.
6 April 2026
Statutory Sick Pay
Removal of waiting period (so available from day one of sickness) and removal of Lower Earnings Limit.
6 April 2026
Employment Talk podcast: April’s Employment Rights Act changes that you simply can’t ignore
Increased protective award
Doubles protective award for failing to comply with collective consultation obligations from 90 days to 180 days’ pay.
6 April 2026
Holiday pay
Requirement to keep records to demonstrate staff have received the correct amount of holiday and been correctly paid for it.
6 April 2026
Holiday pay: are your records up to scratch?
Employment Talk podcast: Holiday pay rules: key changes employers can’t afford to ignore
Fair Work Agency
Brings together existing state enforcement functions. It has the power to inspect, investigate and penalise businesses that do not uphold workers’ rights.
7 April 2026
Employment Talk podcast: April’s Employment Rights Act changes that you simply can’t ignore
Trade Unions
Introduction of electronic balloting and turnout threshold for industrial action ballot removed
August 2026
Consultation on a new code of practice on electronic and workplace balloting for statutory union ballots (closed).
Government consults on draft Code of Practice on electronic and workplace balloting: how will it work in practice?
Employment Talk podcast: The Employment Rights Bill unpacked: what it means for trade unions and industrial action
Extending tribunal time limits
From three to six months.
No earlier than October 2026
Understanding employment tribunals
Article: employees will have six months to bring claims in an Employment Tribunal
Procurement: two-tier code
A two-tier code will apply to procurements where transferred public sector staff and private sector employees will be working alongside each other to deliver an outsourced public sector services contract, to prevent emergence of a two-tier workforce.
TBC
Harassment
You will be liable for third party harassment and the duty to take reasonable steps to prevent sexual harassment will extend to all reasonable steps.
1 October 2026
Third party harassment: will you have to 'police' customer conversations to ensure they don't offend your staff?
Employment Talk Podcast: is the government really going to impose a banter ban?
Trade Unions
Right to statement of trade union rights, right for trade unions to request access to the workplace, introduction of protection from detriment for taking part in industrial action, and trade union representatives will have stronger rights.
1 October 2026

Consultation about duty to inform workers of right to join a union (closed).

Consultation about rights of access (closed).

Acas consultation on updated statutory code of practice on time off for trade union duties and activities (closed).

Employment Talk podcast: The Employment Rights Bill unpacked: what it means for trade unions and industrial action
Tips
Before producing the first version of a written tips policy, you will be required to consult about the policy and review it at least once every three years.
1 October 2026
Consultation published (closed).
Consultation on tipping: what's going to change?
Equality action plans
Employers with 250 or more employees must develop and publish an equality action plan setting out the steps it plans to take to reduce its gender pay gap and support employees experiencing menopause

Voluntarily for 2026 – 2027 reporting year.

From 2027, you must publish information by:

  • 30 March 2027 – public authority employers; and
  • 4 April 2027 – private sector
Will the requirement to publish action plans close the UK's gender pay gap?
Unfair dismissal rights
Employees will need six months continuous employment before they can bring a claim for ordinary unfair dismissal. The cap on the amount of compensation an employee can be awarded is being removed.
1 January 2027
Unfair dismissal reforms from 1 January 2027: what you need to do now
Employment Talk podcast: Another important Employment Bill update and the latest HR issues
‘Fire and Rehire’
Other than in circumstances of financial difficulty, an employee will be automatically unfairly dismissed for failing to agree to contractual variations of a particular kind (defined as ‘restricted variations’).
January 2027
Consultation published (closed).
Employment Rights Act 2025: the fire and rehire consultation explained
Zero hour, ‘low hours’, and agency worker contracts
Duty to offer guaranteed hours, duty to provide reasonable notice of shifts, compensation for cancelled, moved or curtailed shifts.
2027
Consultation expected
Flexible working
Introduces a test of reasonableness and will require you to notify the employee why you have refused their request and why you consider it reasonable to refuse the application on one of the eight existing grounds.
2027
Consultation published – closing at 11.59pm on 30 April 2026
Employment Rights Act 2025: government publishes consultation on flexible working reforms
Bereavement leave
A new right to unpaid bereavement leave will allow workers to take time off when someone close to them dies, or if they or their partner miscarry before 24 weeks. Workers will need to meet certain conditions regarding their relationship with the deceased.
2027
Consultation closed.
The Paternity Leave (Bereavement) Act 2024: key changes for employers and employees
Non-disclosure Agreements (NDAs)
Any provision in an agreement (e.g. a contract of employment or settlement agreement) that prevents a worker from speaking out about relevant harassment or discrimination will be void.
2027
Consultation seeking views on proposals to prevent the misuse of NDAs in cases of workplace harassment and discrimination launched on 15th April 2026 and closes at 11:59pm on 8 July 2026
Settlement agreements: government confirms that workers will be able to request NDAs
Employment Talk podcast: NDAs, harassment and the Employment Bill: what’s changing and why it matters
Collective redundancy threshold
Introduction of a second threshold which will trigger the duty to collectively consult where proposing to dismiss as redundant, within a period of 90 days or less, at least “the threshold number of employees”
2027
Consultation on the threshold for triggering collective redundancy obligations published on 26 February 2026 and closes 21 May 2026
New trigger for collective redundancies - what options is the government considering?

Right to claim unfair dismissal

Next

There is a lot to keep up with – both in terms of the substance of the changes and their implementation timelines. Gaining a clear understanding of these developments and their implications will be essential to ensure your organisation adopts the necessary measures smoothly and effectively.

In the following pages, you’ll find details about the changes and how we’re here to guide and support you throughout.

Save it in your favourites and we’ll keep it updated with the developments as they happen.

Elaine Huttley

National Head of Employment

T: 44 (0)121 214 5434 M: +44 (0)7850 096 907 E: elaine.huttley@irwinmitchell.com