The Employment Rights Act, which came into law in December, represents the most significant employment law reform package in decades. Its scope is wide, its ambition is high, and its impact on employers will be profound.
For businesses, this is not a single change to absorb — it is a programme of reform, with new rights and obligations introduced in phases between late 2025 and 2027. With clarity on what is required, employers now need to start to plan ahead for the next phases to ensure they are best placed to manage risk, maintain compliance, and adapt their workforce strategies.
Below, we outline the key reforms and what they mean in practice.
The Timetable of Change
April 2026: A Major Expansion of Day‑One Rights
April 2026 is a substantial milestone in the reform timeline, introducing a suite of new rights and obligations.
New employees will gain immediate access to:
This removes the current qualifying periods and significantly increases flexibility for working parents and carers. Notably, paternity leave will be available after shared parental leave, allowing families to structure time off more flexibly.
SSP will undergo its most substantial reform in years:
This will increase employer costs and administrative responsibilities, particularly in sectors with high sickness absence.
April 2026 also introduces:
Employers should expect greater scrutiny of redundancy processes and workplace culture.
October 2026: Tribunal Claims, Fire‑and‑Rehire Ban, Trade Union Rights and Stronger Harassment Duties
An important change is the extension of the timeframe for issuing employment tribunal claims from 3 to 6 months. The Government’s aim is to allow more time to settle an issue before a claim needs to be issued. However, a consequence of this is that more people may decide to issue claims due to the extended deadline.
The controversial practice of dismissing employees and rehiring them on new terms will be severely restricted.
While not an outright ban on contractual change, the reforms:
Further strengthening of union rights will increase the importance of constructive industrial relations.
The first changes took immediate effect at the end of 2025, with the repeal of the Strikes (Minimum Service Levels) Act 2023 and parts of the Trade Union Act 2016, strengthening protections for workers participating in industrial action and limiting employers’ ability to discipline or dismiss employees involved in lawful strikes.
Since October 2024, employers have been required to take “reasonable steps” to prevent sexual harassment. The Act raises this to ‘all reasonable steps’, a materially higher standard.
Compliance will require:
This is a shift from reactive to preventative responsibility.
2027: Day‑One Unfair Dismissal Gender Pay Gap and Menopause, and Zero‑Hours Contracts
The original proposal for immediate unfair dismissal protection has been softened. Instead of true day‑one rights, a six‑month qualifying period will apply.
This aims to balance employee protection with employer flexibility by:
Employers should now:
From 2027, employers will need to publish:
This moves reporting from transparency to accountability, requiring employers to demonstrate progress, not just data.
Additional protections will be introduced to safeguard pregnant employees from dismissal, discrimination and unfair treatment.
New protections will apply:
This will require employers to handle performance, conduct, and redundancy processes involving pregnant employees or new parents with heightened care.
New rights will seek to provide:
This will particularly affect retail, hospitality, care, and education.
What Does All This Mean for Employers in Practical Terms?
Employers should take a considered, strategic approach.
Review:
Many of the new rights — particularly around dismissal, harassment, and family leave — will only be effective if managers understand them.
The introduction of the Fair Work Agency signals increased enforcement. Employers should ensure:
SSP changes, expanded leave rights, and zero‑hours protections will all have financial implications.
With strengthened union rights and limits on fire‑and‑rehire, constructive dialogue will be essential.
How Whitehead Monckton Can Help
The Employment Rights Act marks a decisive shift in UK employment law — one that prioritises security, predictability, and fairness for workers. For employers, the challenge is not simply compliance, but adaptation.
Those who prepare early, invest in training, and embed fair work principles into their culture will be best placed to navigate the transition.
Here at Whitehead Monckton, our Employment Law team will help you navigate this transition period.
Whether helping with contract and policy updates and reviews or providing you with legal support and training so you understand your position in light of the new changes, our expert team has years of experience in dealing with such matters across many sectors including:
Working alongside HR consultancy experts Eclipse HR also ensures that, should you need HR advice, the integration is seamless, and the support offered is of the same high quality.
For support or guidance around these forthcoming changes, or to discuss any other employment-related matter, get in touch.
