Employment Rights Act 2025: What UK employers need to know
The long-awaited Employment Rights Bill finally became law at the end of 2025 following extensive debate in Parliament and approval from the House of Lords.
Now officially named the Employment Rights Act 2025, it marks a major shift in the UK’s employment law landscape. The act has been designed to strengthen worker protections with a range of reforms that will affect how organisations hire, manage, and support their teams.
Although the sheer number of changes to come means that they’ll be introduced gradually, employers should begin preparing now to ensure they remain compliant and avoid unnecessary risk and business disruption when they all eventually do come into effect.
This blog post details the key points you need to know regarding the Employment Rights Act 2025 now that it’s officially passed into law.
Changes to be introduced in stages
As mentioned, rather than everything taking effect immediately, the reforms will be rolled out over time. This phased approach enables employers to adapt policies and procedures gradually (therefore giving dedicated time and attention to focus on making each document change as effective and compliant as possible) – but it also means that keeping track of multiple implementation dates will be crucial.
Therefore, forward planning and regular policy reviews will be key as reforms start to take shape.
Expanded employee rights from day one
Several employment rights will now apply from the very first day on the job. These include access to paternity leave and unpaid parental leave without requiring any minimum service. Employers will need to ensure contracts, handbooks, onboarding materials, and HR and payroll platforms are updated to reflect these new entitlements.
Statutory Sick Pay reform
Statutory Sick Pay (SSP) is changing to benefit more workers, faster. The removal of the Lower Earnings Limit (LEL) and the current three waiting days means SSP will be payable from the first day of sickness absence and available to a wider group of employees. This change is likely to impact payroll processes, cost forecasting, and absence management practices.
Stronger protections from harassment
The Act introduces a clearer duty on employers to actively prevent harassment in the workplace. This extends further than internal behaviour to include harassment by third parties, such as customers or users of your service. Employers will be expected to demonstrate that reasonable preventative steps – including training and clear reporting processes – are being taken.
More time to bring tribunal claims
The deadline for bringing most employment tribunal claims will double from three months to six. While this gives employees more time to seek advice and raise claims, it also extends the period during which employers may face legal action.
Tighter controls on ‘fire and rehire’
The practice of dismissing employees and offering re-employment on new (usually less favourable) terms will be more tightly regulated. Employers will be expected to explore meaningful consultation and alternatives before making contractual changes, which is seen as a move towards fairer and more transparent employment practices.
Updates to Trade Union and Industrial Relations Law
Reforms to trade union recognition and engagement aim to simplify existing processes and strengthen workers’ rights to representation. Employers may also need to provide clearer information to employees about union membership and representation rights.
Changes to workforce planning, redundancy and contract types
The Employment Rights Act 2025 also affects how employers approach redundancies and non-standard working arrangements.
Penalties for failing to follow collective consultation rules will increase, highlighting the growing need for careful planning. In addition, new measures are expected to limit the misuse of zero-hours and low-hours contracts, promoting greater security for workers.
Flexible working and bereavement leave
Employees will find it easier to request flexible working arrangements, with employers needing strong, evidence-based reasons for refusing such requests. The introduction of a statutory right to bereavement leave also reflects a wider focus on employee wellbeing, alongside enhanced protections for pregnant employees and new parents.
Greater enforcement
To support these upcoming reforms, enforcement will be strengthened through the creation of a Fair Work Agency. This body will bring together enforcement responsibilities across several areas of employment law, increasing scrutiny and the consequences of non-compliance.
Preparing for the changes in the Employment Rights Act 2025
Although further guidance and secondary legislation are still expected, employers should begin reviewing their HR frameworks now. Updating policies, training managers, and assessing potential cost implications will help ensure a smoother transition as the new rules come into force.
Over the next couple of months we will be sharing more detail about this new Act, including timelines, along with hosting an informative webinar to help answer all your questions. Keep an eye out for more information on this.
At Vero HR, we work with businesses of all sizes to help them feel confident complying with changing legislation such as this. For hands-on support with policy updates, process streamlining, and futureproofing your people operations, contact us today. We’d love to hear from you!