Employment Rights Act 2025 (ERA 2025)

The Employment Rights Act 2025 (ERA 2025) is a major reform of UK employment law designed to strengthen worker protections and modernise employment practices. It received Royal Assent in December 2025 and introduces wide-ranging changes affecting dismissal, tribunal claims, statutory pay, leave, harassment, zero-hours contracts, redundancy, and trade union rights.

The Act is being introduced in phases rather than all at once:

• Some provisions took effect from December 2025
• Many key reforms will apply from April 2026
• Further changes, including unfair dismissal and fire-and-rehire rules, will apply in October 2026 and January 2027
  Employers should prepare early, as detailed regulations and guidance will continue to be published.

The qualifying period to bring an unfair dismissal claim will reduce from two years to six months (expected January 2027).
In addition, the cap on compensatory awards for unfair dismissal will be removed, and the time limit for bringing tribunal claims will increase from three months to six months (from October 2026).

Evidence includes documentation of commercial viability, compliance with regulations, and proficiency of the HR department in managing sponsorship responsibilities.

From April 2026, Statutory Sick Pay will be payable from day one of sickness, rather than day four. This increases payroll costs and requires updates to payroll systems and absence policies.

Yes. From April 2026:

• Paternity leave and unpaid parental leave become day-one rights
• A new statutory right to bereavement leave will apply for the death of a family member

Bereavement leave will also apply for pregnancy loss before 24 weeks

Employers will have a positive legal duty to take all reasonable steps to prevent sexual harassment in the workplace, including harassment by third parties (from April 2026).
Reports of sexual harassment will also qualify as protected disclosures under whistleblowing law.

Employers will be required to offer guaranteed hours contracts to most zero-hours and low-hours workers (including agency workers), based on a reference period (likely 12 weeks).
Workers may also be entitled to compensation for shifts cancelled or changed at short notice.

Fire and rehire will become automatically unfair from October 2026, unless the employer can rely on a narrow financial-difficulty exception. This significantly restricts the use of dismissal and re-engagement as a restructuring tool.

From April 2026, protective awards for failure to comply with collective redundancy consultation requirements will increase from 90 days’ pay to 180 days’ pay, substantially increasing potential employer liability.

Key changes include:

• Removal of minimum service level rules (December 2025)
• Dismissal for taking part in industrial action becomes automatically unfair (February 2026)
• Reduced notice periods for industrial action
• Lower ballot thresholds and removal of picket supervisor requirements
  Many details will depend on secondary legislation.

Employers should:

• Audit contracts, policies, and handbooks
• Update sickness, leave, and harassment policies
• Train managers and HR teams
• Review payroll and scheduling systems
• Monitor secondary legislation and official guidance

Early preparation is essential to manage increased legal and financial risk.

For comprehensive assistance with Sponsorship Licence applications, Skilled Worker visas, and immigration law matters, contact Solidaire Solicitors. Our legal experts provide tailored solutions and client-focused results.

The key risks include:

• Increased tribunal claims
• Higher compensation exposure
• Greater compliance and administrative burdens
• Reduced flexibility in workforce management

Proactive planning and legal advice can significantly reduce these risks.