Employment Rights Act 2025: What’s Changing and What Employers Need to Do Now

Updated 22 October 2026 | The Affable Partnership

Employment law is changing, and with several important reforms approaching, now is the time for employers to prepare.

The Employment Rights Act 2025 brings some of the most significant changes to employment legislation in Great Britain in recent years. For founders, managing directors and HR teams, the challenge is not simply understanding the rules. It is knowing what they mean for people, management decisions, workforce plans and business risk.

Some changes are already in force; others arrive on 30th October 2026, in January 2027 or later in 2027. Not every detail has been finalised. At The Affable Partnership, we help employers cut through the headlines and focus on practical action.

Here is what should be on your radar.

30 October 2026 - Stronger protection against workplace harassment

From 30th October, employers must take “all reasonable steps” to prevent sexual harassment of employees. New provisions also address harassment by third parties, such as customers, clients, suppliers and visitors. These duties go beyond the existence of a written policy: employers need to understand their risks and be able to demonstrate preventive action.

Where an employee succeeds in a sexual harassment claim and the employer has breached the preventive duty, an Employment Tribunal can apply an uplift of up to 25% to compensation. This is not an automatic penalty simply for lacking a policy.

What employers should do

• Review harassment policies, risk assessments and routes for raising concerns, including risks arising from third-party contact.

• Train managers and staff, record attendance and assess whether the training is effective.

• Review how complaints are handled and ensure concerns are dealt with promptly, fairly and sensitively.

  
  

30 October 2026 - Trade unions and collective rights

Trade union reforms taking effect on 30th October include stronger rights of workplace access, changes to statutory recognition arrangements, additional rights for representatives and stronger protection against detriment linked to lawful industrial action. Workplace access is a regulated process, not an unrestricted right for a union to enter premises.

Employers that do not currently recognise a union should still understand whether the reforms could affect them. In particular, smaller employers, multi-site businesses and organisations considering changes to terms or workforce structures should review their position.

Separately, the requirement to provide workers with information about their right to join a trade union begins on 1st January 2027, rather than 30th October 2026. Employers should prepare onboarding and existing-worker communications in line with the final prescribed requirements.

What employers should do

• Brief senior managers on the new access, representation and recognition framework.

• Review arrangements for employee communications, consultation and responses to union requests.

• Plan the right-to-join written statement for January 2027 without assuming a union must already be recognised.

  
  

1st January 2027 - Six months is the new two years

From 1st January 2027, the qualifying period for ordinary unfair dismissal protection reduces from two years to six months, applying to dismissals with an effective termination date from that date. The statutory cap on compensatory awards for ordinary unfair dismissal will also be removed, potentially increasing exposure when claims succeed.

Recruitment quality, onboarding, probation reviews and early performance management therefore become more important. A three-month probation review with a clearly managed extension where appropriate can help employers act in good time, but probation is not an exemption from employment law. Some dismissal rights already apply without a qualifying period.

What employers should do

• Review recruitment decisions, references, induction and probation procedures.

• Set clear expectations from day one and document regular feedback and support.

• Address performance or conduct issues promptly, with fair and consistent processes.

  
  

1st January 2027 - Tougher rules on fire and rehire

The Act significantly restricts dismissal and re-engagement as a way of imposing certain changes to employment terms. Dismissals connected with specified “restricted variations”, including important changes to pay, pensions, hours, shifts and time off, will generally be automatically unfair unless a tightly framed financial-difficulty exception is established.

The exception is not a general permission to change terms because a business would prefer lower costs. For other contractual changes, dismissal will not automatically be unfair solely because of the change, but tribunals will consider the employer’s reasons, consultation and other relevant steps. Related provisions also address dismissals intended to replace employees with non-employees.

What employers should do

• Review any anticipated contractual harmonisation, restructuring or changes to working patterns well before January.

• Consult meaningfully and record the reasons, alternatives and steps taken.

• Seek specialist advice before proposing dismissal and re-engagement or employee-to-contractor replacement arrangements.

  
  

Collective redundancies - The financial and personal risks of getting it wrong

Since 6th April 2026, the maximum protective award for failure to comply with collective redundancy consultation requirements has doubled from 90 to 180 days’ pay per affected employee for relevant dismissals. This makes errors in the consultation process potentially very expensive.

At present, collective consultation is generally triggered where an employer proposes 20 or more redundancies at one establishment within a period of 90 days or less. The familiar minimum consultation periods remain 30 days before the first dismissal for 20 - 99 proposed redundancies and 45 days for 100 or more. A separate HR1 notification requirement applies; failure to notify the Secretary of State can be a criminal offence, and individual directors or senior officers can face liability in prescribed circumstances.

Further changes expected during 2027 will add an organisation-wide threshold alongside the existing establishment test. The numerical threshold is not yet final, so businesses should not rely on a proposed figure. Employers operating across multiple sites may need to look at redundancy proposals across the whole organisation, rather than site by site. Changes also affect how representatives at different establishments may be consulted and what information they receive.

What employers should do

• Review proposed redundancies together across sites and over rolling 90 day periods.

• Seek advice before announcing proposals, selecting employees or setting dismissal dates.

• Make sure consultation, written information, employee representatives and HR1 notification are properly planned and documented.

  
  

2027 - Zero-hours, low-hours and agency-worker arrangements

The Act establishes a framework for three core protections: offers of guaranteed hours reflecting qualifying regular work; reasonable notice of shifts and changes; and payments where qualifying shifts are cancelled, moved or curtailed at short notice. Related protections extend to qualifying agency workers.

Key practical details, including reference periods, regularity tests, low-hours thresholds, exclusions and the rules on reasonable notice, depend on further regulations. Figures discussed during consultations, including a 12 week reference period, should not be treated as final law. Seasonal working and genuine temporary demand require careful consideration; there is no blanket exclusion for all seasonal workers.

What employers should do

• Audit zero-hours, low-hours and agency-worker arrangements, including seasonal peaks.

• Compare contracted hours with hours actually worked and assess the reliability of records.

• Review shift planning, notification, cancellations and overtime practices before the detailed rules take effect.

  
  

Other changes expected during 2027

Employers should also prepare for new bereavement leave rights, including provisions relating to pregnancy loss; enhanced dismissal protections for pregnant employees and new mothers; further reforms to flexible working; measures addressing misuse of non-disclosure agreements in cases involving harassment or discrimination; umbrella-company regulation; and mandatory gender equality and menopause action plans for relevant large employers. Precise implementation arrangements differ and some are still under development.

For organisations with 250 or more employees, the future action-plan requirements merit particular attention. Employers should watch the regulations rather than assuming every draft detail is already a legal duty.

Do not overlook changes already in force

Statutory Sick Pay changed from 6th April 2026: eligible employees can receive SSP from their first full day of sickness absence and the previous lower earnings limit was removed. Employers should ensure payroll, absence policies and manager guidance reflect these changes.

From 1st October 2026, the normal time limit for bringing most Employment Tribunal claims increased from three months to six months for matters arising on or after that date; the former rules generally apply to earlier events. In Scotland, the extension for certain breach of contract claims begins on 9th November 2026. Employers should retain clear records and seek early advice when disputes arise.

Five practical steps employers should take now

1. Review employment documentation

Check contracts, staff handbooks, harassment policies, absence procedures and consultation documents; identify what requires immediate amendment and what needs a scheduled update.

2. Strengthen recruitment and probation

Improve recruitment decisions, early reviews and performance evidence before the six-month unfair dismissal threshold arrives.

3. Equip managers

Train managers to deal with conduct, harassment, difficult conversations, absence, performance and employee concerns consistently.

4. Review workforce and restructuring plans

Assess reliance on variable-hours and agency labour, multi-site redundancies, contractual changes and the commercial impact of new rights.

5. Plan implementation and keep evidence

Allocate ownership, create a timetable, retain written records and revisit the plan as secondary legislation and guidance are issued.

Preparation now protects your business later

We know that employers are already dealing with rising costs, recruitment challenges and wider economic uncertainty. The Employment Rights Act adds responsibilities, but it also creates an opportunity to strengthen the way people are recruited, managed and supported.

Good recruitment, capable managers, clear policies and consistent processes are not simply about compliance. They support resilience, productivity and a business that is less dependent on individual leaders.

At The Affable Partnership, we combine practical HR advice, leadership training, strategic People support and fractional HR leadership. We help founders and managing directors protect their businesses while building teams and management capability for what comes next.

Is your business ready for the changes?

If you are unsure whether your employment documentation, workforce plans or management practices are ready, speak to Laura Tutt and The Affable Partnership.

The Affable Partnership Ltd  |  www.affablepartner.co.uk

 This article reflects publicly available information checked on 22nd October 2026. Some provisions are subject to secondary legislation, consultation, transitional rules or further guidance. The principal reforms discussed concern Great Britain; Northern Ireland generally has separate employment legislation. This article provides general information, not legal advice.