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Law changes

Employment Rights Act 2025: what changes for employers, and when

One dated list of what the Act changes for a small employer, what is already in force, and what is still to come. Every row links to the official source, and we update it in place when each wave lands.

The Employment Rights Act 2025 is a big amending law. It doesn't start from scratch: it changes existing employment law, including the Employment Rights Act 1996. It became law on 18 December 2025, and the changes arrive in phases across 2026 and 2027, not all at once. Some are already in force. Some have firm dates. Some have no date yet, and the government says all future dates remain subject to parliamentary processes and may change.

This page lists only the changes that matter if you're a small employer taking people on and managing them, each with the official source next to it. The Act also changes trade union law, collective redundancy and a few specific sectors; for the full list, see ACAS.

Last checked: 29 September 2026. We update this page in place when each wave lands, and the dated log at the bottom records every change.

Why one list? Because the alternative is reading three separate official pages and working out for yourself which bits apply to you and which dates are firm. Keep this one open instead.

At a glance

Date Change Status What it means for a small employer Source
6 April 2026 Statutory sick pay from the first day of illness, with no minimum earnings In force Payroll pays SSP from day one of sickness, including for lower earners ACAS, legislation.gov.uk
6 April 2026 Paternity leave and unpaid parental leave become day-one rights In force A new starter can give notice of paternity leave from their first day ACAS
6 April 2026 Employers must keep holiday and holiday pay records In force Keep them for at least 6 years from the date they were made ACAS
6 April 2026 Reporting sexual harassment counts as whistleblowing In force Someone who reports it is protected from detriment and unfair dismissal ACAS
7 April 2026 Fair Work Agency set up In force A new body enforcing rights such as holiday pay and SSP ACAS
1 October 2026 Time limit for most tribunal claims rises from 3 months to 6 (Scotland, breach of contract: 9 November 2026) Coming Claims can arrive later, so keep records of decisions for longer legislation.gov.uk, ACAS
30 October 2026 Duty to take "all reasonable steps" to prevent sexual harassment Coming The bar rises from "reasonable steps"; review your policy and training ACAS, GOV.UK
30 October 2026 Liability for harassment by third parties, such as customers or clients Coming Covers people you don't employ, unless you took all reasonable steps ACAS, GOV.UK
By end of 2026 Tipping law strengthened Date not announced If you have a tipping policy, consult before creating or reviewing it GOV.UK, ACAS
1 January 2027 Unfair dismissal qualifying period falls from normally 2 years to 6 months Coming The first six months matter much more; probation reviews need to be real legislation.gov.uk, ACAS
1 January 2027 Cap on unfair dismissal compensation removed Coming A successful claim is no longer limited by the cap legislation.gov.uk, ACAS
1 January 2027 Duty to tell workers about their right to join a trade union Coming A new thing to tell people; how it works is not yet published ACAS, GOV.UK
January 2027 Dismissal and rehire ("fire and rehire") becomes automatically unfair in most cases Coming Take advice before changing terms by dismissing and re-engaging ACAS
2027 Flexible working refusals must use a listed reason and be explained Date not announced A "no" needs a reason from a list of 8 and an explanation ACAS
2027 Guaranteed hours, shift notice and pay for cancelled shifts for zero-hours and low-hours workers Date not announced Matters if you use zero-hours or low-hours contracts ACAS, GOV.UK
2027 Unpaid statutory bereavement leave, including pregnancy loss Date not announced A new leave right to add to your policies ACAS, GOV.UK
2027 Stronger dismissal protection for pregnant workers and those returning from maternity leave Date not announced Take extra care with any dismissal in that period ACAS
2027 Clauses stopping workers alleging or disclosing harassment or discrimination become void Date not announced Check any confidentiality clauses you use ACAS

Already in force

Sick pay from day one (6 April 2026). Statutory sick pay is now paid from the first day of illness, instead of the fourth day, and the lower earnings limit has gone: workers do not need to earn a minimum amount to be eligible. The commencement regulations brought this in on 6 April 2026.

Family leave from day one (6 April 2026). Paternity leave and unpaid parental leave became day-one rights, so someone can give notice of paternity leave from their first day. If your written statement template or handbook still says someone has to wait before they can take this leave, it's out of date.

Holiday records (6 April 2026). Employers must keep records of annual leave and holiday pay, for at least 6 years from the date they were made.

Whistleblowing on sexual harassment (6 April 2026). Sexual harassment became a 'qualifying disclosure' under whistleblowing law, so someone who reports it is protected from detriment and unfair dismissal.

The Fair Work Agency (7 April 2026). A new body that brings existing enforcement bodies together and takes on enforcement of rights such as holiday pay and statutory sick pay.

Coming in October 2026

Six months to bring a tribunal claim (1 October 2026). The time limit for most employment tribunal claims rises from 3 months to 6. The commencement regulations are made, and the new limit applies where the thing complained about happens on or after 1 October 2026. For breach of contract claims in Scotland, the date is 9 November 2026.

"All reasonable steps" on sexual harassment (30 October 2026). Employers already have to take reasonable steps to prevent sexual harassment of their workers. From 30 October 2026 that becomes "all reasonable steps", and employers will be liable for harassment from third parties, for example customers or clients, unless they have taken all reasonable steps to prevent it. ACAS says the law will later specify what "reasonable steps" means. Our guide to HR policies for small businesses covers where a harassment policy fits.

Not part of this Act, but landing the same day: a new employer's guide to right to work checks comes into force on 1 October 2026. See our right to work checks guide.

Coming by the end of 2026

Tipping. The government lists strengthening tipping law for "by the end of 2026" without a day. ACAS says employers will need to consult before creating or reviewing a tipping policy, share an anonymised summary of the feedback, and update the policy at least every 3 years.

Coming in January 2027

Unfair dismissal after 6 months (1 January 2027). The qualifying period for unfair dismissal, normally 2 years today, falls to 6 months, and the limit on unfair dismissal compensation is removed. The commencement regulations are made. Anyone who already has at least 6 months' service on 1 January 2027 is protected from that day. Protection from the first day of employment was the original plan; the government changed this to a 6-month qualifying period.

Probation itself doesn't change. ACAS: "The Act does not affect probation periods." There's still no legal requirement to have one, and it can be any length. What changes is the weight of the first six months. Our probation periods guide covers running reviews that stand up.

Right to join a trade union. ACAS says that from 1 January 2027 employers will have a duty to tell workers about their right to join a trade union. How that has to be done hasn't been published yet.

Fire and rehire (January 2027). Dismissing someone and rehiring them on worse terms will become an automatically unfair dismissal in most cases. No exact day has been given beyond January 2027.

Later in 2027, dates not yet announced

ACAS says the government has not announced when in 2027 most of these will happen, and how they work is still subject to consultation.

  • Flexible working. Refusing a request will mean giving a reason from a list of 8 acceptable reasons and explaining why the refusal is reasonable.
  • Zero-hours and low-hours contracts. A right to guaranteed hours if the worker wants them, reasonable notice of shifts, and compensation if a shift is cancelled, shortened or moved. The government says timings will be updated after consultation.
  • Bereavement leave. A new right to statutory bereavement leave, unpaid, including pregnancy loss.
  • Pregnancy and maternity. Stronger protection against dismissal for pregnant workers and those returning from maternity leave.
  • Non-disclosure agreements. Clauses that would stop workers alleging or disclosing work-related harassment or discrimination will be void.

When any of these gets a date, it moves up this page.

What to do now

None of this is exciting, but all of it is doable for a company of 5 to 50 people.

  • Check payroll pays statutory sick pay from the first day of illness, with no minimum earnings. Don't assume it does.
  • Check your written statement template and handbook wording on sick pay, paternity leave and unpaid parental leave. The last two are day-one rights now, so old wording may be wrong.
  • Keep holiday and holiday pay records somewhere you can actually find them, for at least six years.
  • Before 30 October 2026, re-read your sexual harassment policy and training. Think about customers and clients too, not just colleagues. The policy checklist helps you see what you have.
  • Plan probation reviews so decisions are made and written down well inside the first six months. Probation isn't changing, but the clock behind it is.
  • From 1 October 2026 most tribunal claims can be brought within six months, not three, so keep records of decisions for longer.
  • Put the dates in the diary, and check this page and ACAS when each one lands.
  • Take advice on a specific case. This page is a tracker, and your situation may not match the general picture.

The probation one is where I'd start, because it's the easiest to get wrong by drifting.

Changes to this page

  • 29 September 2026: page published. Checked against ACAS (last updated 28 September 2026), the GOV.UK timeline (updated 25 September 2026) and the commencement regulations on legislation.gov.uk.

Questions people ask

What is the Employment Rights Act 2025?

It's a law that amends existing employment law, including the Employment Rights Act 1996. It became law on 18 December 2025 (legislation.gov.uk), and its changes come in phases across 2026 and 2027 (ACAS).

When does unfair dismissal protection change to 6 months?

On 1 January 2027 (legislation.gov.uk). From then, employees can claim unfair dismissal after 6 months in a job instead of 2 years, and the limit on compensation is removed (ACAS). Anyone with at least 6 months' service on that date is protected straight away (ACAS).

Is the probation period changing in the UK in 2026 or 2027?

No. ACAS says "The Act does not affect probation periods": there's still no legal requirement to have one, and it can be any length (ACAS). What changes around it is the 6-month unfair dismissal qualifying period from 1 January 2027. More in our probation periods guide.

What are day one rights?

Rights that apply as soon as someone starts a job, including during probation (ACAS). Since 6 April 2026, paternity leave and unpaid parental leave are day-one rights, and statutory sick pay is paid from the first day of illness (ACAS). Unfair dismissal protection is not a day-one right: from 1 January 2027 it starts after 6 months.

When do employment tribunal time limits change?

On 1 October 2026, the time limit for most claims rises from 3 months to 6, for things that happen on or after that date (legislation.gov.uk). For breach of contract claims in Scotland, the date is 9 November 2026 (ACAS).

Are right to work checks changing in October 2026?

Yes, but that isn't part of the Employment Rights Act. A new employer's guide to right to work checks comes into force on 1 October 2026 (GOV.UK). Our right to work checks guide covers what's different.

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