Employment Rights Act 2025: key changes employers should prepare for

The Employment Rights Act 2025 is one of the biggest changes to UK employment law in a generation. Some changes are already in force, with further reforms being introduced throughout 2026 and 2027. For employers, this is not something to leave until the final details are confirmed. The direction of travel is clear: stronger worker protections, earlier employment rights and greater obligations on businesses.

That means HR teams, business owners and senior leaders should be reviewing contracts, policies, people processes and manager training now. Waiting could increase the risk of claims, employee relations issues and avoidable cost.

Key changes employers need to prepare for

• Statutory Sick Pay changes, including removal of the waiting period and lower earnings threshold.
• Day-one rights to paternity leave and unpaid parental leave.
• Higher financial exposure for collective redundancy failures.
• Reforms to unfair dismissal, sexual harassment duties, zero hours contracts and ‘fire and rehire’.

These are some of the common questions employers have been asking our employment law team as they prepare for the Employment Rights Act 2025.

Is the Employment Rights Act 2025 already in force?

Yes, in part. Some measures took effect from December 2025 and April 2026, while many significant changes are still to come.

Do employment contracts and policies need updating?

Very likely. Sickness absence, family leave, probation, dismissal, redundancy, whistleblowing, harassment and flexible working policies may all need reviewing.

Will these changes increase legal risk?

Yes. Earlier rights and stronger protections mean employers will need clearer processes, better records and more consistent decision-making. The biggest risks are likely to arise where managers are not trained or where policies no longer reflect the law.

Our employment law partners Louise Attrup and Michael Kerrigan will be covering these issues in our webinar on Wednesday 15 July, with practical guidance for HR professionals, business owners and senior leaders on what to do next.

Register your place to understand what is changing, where the key risks are and how your organisation can prepare with confidence.