The Employment Rights Bill has now passed through Parliament and received Royal Assent, becoming the Employment Rights Act 2025. This landmark legislation represents the most significant overhaul of workplace rights in a decade, with phased implementation starting in April 2026 and continuing into 2027. For employers, now is the time to prepare.
Why Has the Employment Rights Act Been Introduced?
The Act is part of the government’s “Plan to Make Work Pay”, designed to modernise workplace rights, strengthen worker protections, and improve fair pay and flexibility. It addresses long-standing concerns around zero-hours contracts, limited day-one rights, and gaps in sick pay and family leave. The aim is to create a fairer, more predictable employment landscape.
Key Changes and When You Can Expect Them
Trade Union Reform (Early 2026)
Early in 2026, the government will repeal the Strikes (Minimum Service Levels) Act 2023 and simplify ballot and notice requirements for industrial action. Employees will gain enhanced protections against dismissal for taking part in industrial action. New starters will need to be informed of their right to join a trade union from day one.
Sick Pay and Family Leave (April 2026)
From April 2026, Statutory Sick Pay will be available from the very first day of absence, removing the previous three-day waiting period. Both paternity leave and unpaid parental leave will become day-one rights, giving employees immediate access to these entitlements without any qualifying period. Employers should review payroll systems and absence management processes.
Enforcement and Oversight (April 2026)
April also marks the introduction of the Fair Work Agency, which will oversee compliance with holiday pay, minimum wage, and wider labour standards. This agency will have enhanced powers to enforce regulations and issue penalties for non-compliance. Businesses should expect greater scrutiny and consider proactive audits.
Fire and Rehire Restrictions (October 2026)
By October 2026, new restrictions will apply to fire-and-rehire practices. Any dismissal primarily aimed at forcing employees to accept new contract terms will be deemed automatically unfair, except in cases of severe financial distress. Employers should review their change-management strategies.
Harassment Prevention (Expected October 2026)
Employers will face a new duty to take “all reasonable steps” to prevent harassment, including liability for third-party harassment in certain circumstances. This means implementing practical measures such as training, reporting mechanisms, and documented evidence of compliance.
Unfair Dismissal Rights (January 2027)
From January 2027, the qualifying period for unfair dismissal claims will reduce from two years to six months, and the cap on compensation will be removed. This significantly increases potential financial exposure for businesses, making robust probation processes and early performance management essential.
What Should Businesses Do Now?
Assign a Compliance Lead (January 2026)
Designate someone to oversee preparations and ensure your organisation stays ahead of legislative changes. Engage specialist HR support to translate complex requirements into practical solutions.
Review Probation Policies (by March 2026)
With unfair dismissal rights reducing to six months from January 2027, robust probation processes and early performance management will be critical. Train managers to hold meaningful reviews and document issues effectively.
Update Absence and Sick Pay Processes (by April 2026)
Remove outdated references to waiting days and ensure payroll systems reflect day-one Statutory Sick Pay and family leave entitlements.
Collective Consultation Compliance (April 2026)
Protective awards for failure to consult will double from 90 to 180 days’ pay. Review redundancy processes and ensure compliance to avoid significant financial exposure.
Strengthen Harassment Prevention Measures (by October 2026)
Move beyond policy statements to practical steps such as training, reporting mechanisms, and documented evidence of compliance.
How Innov8 HR Can Help
Our specialist HR team provides tailored policy and handbook updates, manager training programmes focused on performance management and consultation, and workforce planning support. We monitor legislation and deliver briefings aligned to April and October commencement dates.
Contact us:
rochelle@innov8hr.co.uk
www.innov8hr.co.uk