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The Employment Rights Act 2025 – What’s Changing!

Happy New Blog Day! Let’s dive into the meaty stuff!

For the past two years or so, the Employment Rights Act 2025 has been probably the hottest topic for those within the People function.

This has undoubtedly caused a lot of headaches, sleepless nights, and an unnecessary amount of worry for a lot of people because of the way the headlines have been presented, as well as the timeframes that have been changed. This has left lots of businesses, (including us occasionally!), feeling somewhat lost at times!

A big part of what we do is to keep on top of employment legislation, so that we have always got the backs of our clients, and can take the weight of worry off their shoulders.

As our clients will attest, we have been staying alert, figuring out what the changes mean, understanding the consequences these may have, and creating and executing plans of action. Think of it as an informative and supportive ERA care package with a cherry on the top.

So, what has already taken place? To caveatthough, this blog does not cover them all, but it does highlight the ones that our clients have needed to know the most:-

This first lot is already live!

  • Paternity Leave and Unpaid Parental Leave are a DAY ONE EMPLOYMENT RIGHT
  • The introduction of Bereaved Partners’ Paternity Leave
  • Removal of the three waiting days and Lower Earnings Limit for the payment of Statutory Sick Pay.
  • The maximum ‘protective award for failure to consult in collective redundancy has doubled from 90 days’ pay to 180 days’ pay (a gentle reminder to do things properly – or ask us first!)

The next round of changes is due to come in October 2026. These are set to include:-

  • Requirement for employers to take ALL reasonable steps to prevent sexual harassment of their employees, rather than the ‘reasonable steps’ it is now.
  • In addition to the above, the requirement will also extend to the protection from harassment of their employees by third parties, as employees will become liable for third-party harassment.

The next proposed round comes in January 2027: –

  • Reduction of unfair dismissal qualifying period to six months, for dismissals from 1st January 2027, and uncapping compensatory awards. Employment contracts reviews, specifically probationary review clauses, are going to need some attention here!
  • Increased fire and rehire protections – This could see the end of ‘if you don’t sign this new contract, you’re out the door’ – Not that we condone that anyway!

The last thing we want to be doing is the scaremongering, but more changes are lined up for later on in 2027… these will include:-

  • Action plans on gender equality and supporting employees through the menopause
  • Enhanced dismissal protections for pregnant women and new mothers
  • Bereavement leave including pregnancy loss
  • Introduction of the right to guaranteed hours and the right to reasonable notice and short notice payments (you have potentially come across this in a lot fewer words = end of zero-hour contracts maybe?)

All of this being said… we are here with you every step of the way.

If we could give you any bits of advice right now, it would be to carry out (or implement for the first time):-

  • Policy and procedure reviews
  • Contract of Employment reviews
  • Training (especially around Sexual Harassment)
  • Recruitment/Onboarding/Induction reviews
  • Management training on all HR Essentials

Or get in touch with us and let us thread the Employment Rights Act seamlessly into your business.

Catch up next time!