The Employment Rights Act 2025 introduces significant reforms with a staged rollout through 2026–2027. It requires employers to plan proactively and implement policy changes to ensure compliance. Many provisions require secondary legislation and consultation, however, so HR professionals should track formal commencement dates and transitional guidance closely.
Employers must take steps regarding the most significant reforms, some of which are coming into force as soon as April this year.
Day one rights for paternity and unpaid parental leave come into force in April 2026, while other enhanced protections for pregnant workers and new mothers are planned for 2027. Employers will need to refresh policies, train managers and review redundancy safeguards.
The protective award maximum doubles to 180 days per employee in April 2026. Further changes to the threshold test are due in 2027. This will require internal training to ensure consultation is carried out correctly and in compliance with timelines.
Statutory sick pay will become payable from day one with removal of the lower earnings limit and waiting days; rate mechanics will align to the lower of a flat rate or 80% of weekly earnings in April. This will require updates to payroll, absence triggers and communications.
In October 2026, dismissals linked to refusal of a restricted variation, such as pay, hours, holidays and pensions will be automatically unfair, with a narrow exception for extreme financial difficulty. Change management protocols and board oversight will need to be updated accordingly. Also in October, time limits will be extended to six months for most claims.
In January 2027, the qualifying period for unfair dismissal changes will reduce to six months and the compensation cap will be removed, which will materially increase dismissal risk, particularly for higher earners. Employers ought to calibrate their probation policies and review settlement strategies ahead of implementation.
Additionally in 2027, alongside related protections, contracts must guarantee hours based on a 12-week reference period. Employers should audit casual labour models and scheduling tools.
Employers also need to stay abreast of updates to the trade union framework, including changes to access rights and the recognition process. These changes will require updated engagement with unions and statutory statements to workers. Other significant changes to be monitored include flexible-working refusal provisions, bereavement leave, equality pay gap and menopause action plans for large employers, and sectoral fair pay initiatives.
Employers should document a phased implementation plan mapped to the statutory timetable. It will be important to monitor the consultation papers and draft regulations as they are produced, in order to facilitate the board-level risk reporting, policy changes and training which will be necessary to comply with the new legislation.
Paul Griffin is head of employment for Europe, Middle East and Africa, Jonathan Newman is a partner, and Amanda Sanders is knowledge director, precedents at Norton Rose Fulbright
