ERA 2025 is here – don’t risk getting it wrong.
We’ll guide you through the legal changes and keep your business compliant.
The Fair Work Agency is here – and enforcement just got serious.
Make sure your business is compliant before
inspections, penalties, or investigations hit.
Employment Rights Act 2025
What You Need to Know
The Employment Rights Act 2025 (ERA) brings one of the most significant overhauls to employment law in Great Britain in recent years. While most of the changes apply only to Great Britain, key developments such as Statutory Sick Pay (SSP) reforms and the creation of the Fair Work Agency will apply across the whole UK. Because the Act touches so many different areas, it’s often described as a “patchwork quilt” of reforms. And importantly, although it is now law, many of the practical details are still being finalised. This means changes will roll out in stages over the next 12–18 months rather than all at once. We’ll continue to guide you through each phase—helping you stay compliant, update policies, and deal with real-life situations as they arise.
The Rollout Timeline
The government has confirmed three main waves of reform:
April 2026:
First wave of changes (now in force)
October 2026
Second phase
2027
Final and most significant reforms
Some timings have shifted slightly. For example:
- Trade union balloting reforms moved to August 2026
- “Fire and rehire” restrictions delayed until January 2027
Trade Union Changes (Already in Effect)
Some reforms came into force immediately or in February 2026, including:
- Repeal of the Strikes (Minimum Service Levels) Act 2023
- Removal of many requirements under the Trade Union Act 2016
- Simpler industrial action ballot and notice processes
- Stronger protection for employees taking industrial action
Notably, any dismissal for taking part in industrial action is now automatically unfair, regardless of timing.
Key Changes from April 2026
Here are the most important updates now in force:
Statutory Sick Pay (SSP)
-
- Payable from day one (no 3-day waiting period)
- No minimum earnings threshold
- Low earners receive the lower of:
£123.25 per week, or
80% of average weekly earnings
This significantly expands eligibility, especially for part-time and lower-paid workers.
Family-Friendly Rights
- Paternity Leave is now a day one right (pay still requires 26 weeks’ service
- Unpaid Parental Leave is also now a day one right
Employers should review onboarding processes and leave policies to reflect this.
Whistleblowing Protection
- Reporting sexual harassment concerns is now explicitly protected
- Workers are safeguarded from dismissal or mistreatment for raising such issues
Equality Action Plans (Large Employers)
- Employers with 250+ staff are encouraged to publish plans covering:
Gender pay gap actions
Menopause support
Currently voluntary, but expected to become mandatory in 2027.
Trade Union Recognition
- Removal of the 40% support threshold
- Shift to a simple majority of votes cast
This makes union recognition more accessible in practice.
Looking Ahead to 2027 – Unfair Dismissal
- A major change is coming on 1 January 2027:
Qualifying period for unfair dismissal claims reduced from 2 years to 6 months
Cap on compensation removed
This will dramatically increase exposure to claims and makes early-stage employee management more critical than ever.
What You Should Be Doing Now
- Review contracts and handbooks
- Update sickness, leave, and redundancy procedures
- Prepare for Fair Work Agency scrutiny
- Train managers on new day-one rights
- Start planning for 2027 unfair dismissal changes
Don’t get caught out by the new ERA changes
Make sure your business is protected, compliant, and ahead of the curve.
Call us today on 0333 772 3508 and get clear, expert support before issues become costly problems
