Employment Rights Act 2025–2027: Key Changes & What Employers Need to Know

The UK is about to undergo its most significant employment law reform in decades. The proposed Employment Rights Act 2025 is set to introduce a wide-ranging package of new legislation that will impact every employer and HR team across the country.

Expected to receive Royal Assent in July 2025, the Act will roll out in phases through 2026 and 2027. Although the bill has not yet cleared the House of Lords, and the consultation process remains ongoing, employers must start preparing now to remain compliant.

Below is a streamlined summary of the planned timeline and what each phase means for businesses and their people.

Summer 2025: Immediate Repeals and Industrial Action Reform

Once the Act is passed, the following changes are expected to take effect:

• Repeal of the Strikes (Minimum Service Levels) Act 2023
• Repeal of key parts of the Trade Union Act 2016
• Removal of the 10-year rule on trade union political fund ballots
• Simplified rules around industrial action notices and ballots
• New protections from dismissal for employees taking lawful industrial action

April 2026: Day 1 Rights and Fair Work Framework

The second phase introduces several employee rights from day one of employment and establishes the groundwork for improved workplace standards:

• Day 1 rights for Paternity Leave and Unpaid Parental Leave
• Whistleblowing protections strengthened
• Launch of a new Fair Work Agency
• Reform of Statutory Sick Pay: removal of Lower Earnings Limit and Qualifying Days
• Simplified trade union recognition processes
• Legalisation of electronic and workplace balloting
• Doubling of the maximum period for collective redundancy protective awards

October 2026: Fairer Practices and New Employer Duties

By late 2026, businesses will be expected to comply with a number of new fairness and safety measures:

• Ban on fire and rehire
• Creation of a Fair Pay Agreement for the adult social care sector
• New two-tier procurement code
• Legal requirement to consult staff on tipping policies
• Employers must inform staff of their right to join a trade union
• Increased trade union access rights
• Legal duty to prevent sexual harassment, including from third parties
• Extended time limits for employment tribunal claims
• Enhanced protection for trade union reps
• Double protective awards if employers breach procedural rules
• Stronger protections for workers involved in industrial action

December 2026: Seafarers' Charter

The Seafarers’ Charter becomes mandatory, setting new employment standards for maritime workers.

2027: Final Reforms and Expanded Protections

Several reforms are planned for 2027, building on earlier changes and further strengthening employee rights:

• Mandatory Gender Pay Gap and Menopause Action Plans (voluntary in 2026)
• Extended rights for pregnant workers
• Clarification of what constitutes “reasonable steps” to prevent sexual harassment
• Crackdown on blacklisting
• Reforms to the industrial relations framework
• Regulation of umbrella companies
• Revisions to collective redundancy thresholds
• Flexible working becomes a day one right
• New statutory Bereavement Leave
• Zero-hours contracts reformed – after 12 weeks, guaranteed hours must be offered (includes agency workers)
• Day 1 protection from unfair dismissal for all employees

What This Means for Employers

This wide-ranging reform will significantly reshape workplace responsibilities, employee protections, and HR policies. From adjusting contracts and improving compliance procedures to training leadership on new obligations, preparation is essential.

Chris from Expert HR Solutions advises:

“This is the most wide-reaching change to employment law in a generation. Employers who act early will avoid compliance risks and support a more engaged and protected workforce.”

Get Support from Expert HR Solutions

Their team is here to guide you through every phase of these upcoming changes. From policy updates to staff training, they help ensure your organisation is legally compliant and future-ready. Contact them today to book a consultation.