The Employment Rights Act 2025 represents one of the most significant overhauls of UK employment law in decades. With key changes rolling out between 2025 and 2027, the legislation will impact businesses of all sizes, introducing new risks, responsibilities and opportunities for employers to reassess how they manage their workforce.
In this episode of Whitehead Monckton’s HeadNotes podcast, Antonio Fletcher, Head of Employment, is joined by solicitor, Eloise Jones to discuss the Employment Rights Act implications for employers, what these changes mean in practice and how employers should prepare.
This insight is particularly relevant for employers, HR professionals and business owners preparing for upcoming employment law changes.
As discussed in the podcast, the Act introduces a series of reforms across multiple areas of employment law, with particular focus on trade union rights, employee protections and workplace practices. For a full overview, see our guide to the key changes in the Employment Rights Act 2025.
These changes are being introduced in phases, with some already in effect and others continuing through to 2027. Importantly, they are not limited to large or unionised organisations. From small businesses to large corporations, every employer is likely to be affected.
“Whether you’re a small business or a large corporation, there is something in this Act that will affect how your business is run.” — Eloise Jones, Solicitor
One of the most high-profile changes discussed in this episode is the reduction in the qualifying period for unfair dismissal rights, which will move from two years to six months.
This gives employers far less time to assess whether a new hire is the right fit and places greater importance on effective recruitment, well-structured employment contracts and policies, and robust probation management.
“Six months is a very short amount of time to assess whether someone is the right fit for your business.”
— Antonio Fletcher, Head of Employment
In practice, employers will need to:
The podcast also highlights how the Act introduces changes that increase both the likelihood and potential cost of tribunal claims.
The time limit for bringing most claims will increase from three months to six months, potentially leading to a higher volume of claims. In addition, the removal of the compensation cap for unfair dismissal claims significantly increases financial exposure.
“There will be a greater risk of claims and contentious matters arising as a result of these changes.”
— Antonio Fletcher, Head of Employment
These developments mean that employers must be more diligent than ever in following fair procedures and maintaining accurate records, particularly in relation to employment tribunal claims and wider workplace disputes.
Alongside unfair dismissal reforms, the Act introduces a range of wider changes, as discussed by Antonio and Eloise:
Together, these changes raise the standard expected of employers and reinforce the need for robust workplace policies, structured disciplinary and grievance procedures, and clearly defined internal processes.
A key theme throughout the episode is the importance of early preparation. Antionio and Eloise suggest employers should consider:
Taking proactive steps now can help reduce the risk of disputes and ensure compliance as the legislation comes into force. This is especially important for employers navigating organisational change, including TUPE transfers and wider workforce restructuring.
The changes introduced by the Employment Rights Act 2025 are wide-ranging and will affect how businesses manage employees at every stage of the employment lifecycle.
Our employment law specialists work closely with employers to help them prepare for these changes. We can support you with:
Taking action now can help your business stay compliant and adapt confidently to the evolving legal landscape.
If you would like advice on how these changes affect your business, please get in touch with our employment team.
The qualifying period for unfair dismissal will reduce from two years to six months, meaning employees gain protection much sooner.
Employers should review policies, train managers, strengthen recruitment processes and ensure compliance with new legal requirements.
Head of Employment at Whitehead Monckton, advising employers on all aspects of employment law including disputes, contracts and tribunal claims.
Solicitor in the employment team, supporting businesses with employment law matters, compliance and employee relations.
Explore more episodes and updates on the HeadNotes Legal Podcast, or browse our employment law services for further guidance on how we can help your business stay compliant and keep abreast of legislative changes.
