NEW LEGISLATION - EMPLOYMENTS RIGHTS ACT 2025

The Employment Rights Act 2025  received Royal Assent on 18 December 2025, officially becoming law.  Its provisions will not take effect immediately but will be implemented in stages, with major updates expected in April and October 2026 and continuing into 2027.  Some changes will require secondary legislation and there will be government consultations on many reforms to define the details of the new rules.

The Act marks the most significant overhaul of UK worker rights in a generation

Key changes are as follows:-

Unfair Dismissal: The qualifying period for unfair dismissal will be reduced from two years to six months, effective 1 January 2027.

Family Rights & Sick Pay: Paternity and parental leave will become day-one rights, and statutory sick pay will be paid from the first day of illness.

Employment tribunal time limits: The time limits for making a claim to an employment tribunal will increase from 3 months to 6 months for all claims.

Family Rights & Sick Pay: Paternity and parental leave will become day-one rights, and statutory sick pay will be paid from the first day of illness.

Zero-Hours Contracts: Workers will gain rights to guaranteed hours based on average hours worked, with rights to notice of shifts and compensation for late changes.

Fire and Rehire: Strict restrictions will be placed on "dismiss and rehire" practices. Dismissing someone then rehiring them on less favourable terms and conditions will become an automatically unfair dismissal in most cases.

Sexual Harassment: Employers must take “all” reasonable steps to prevent prevent sexual harassment, including from third parties.

Employers should review their  procedures and consider the impact of these changes on their business.

If you are an employer or employee and you need help on employment issues contact us now on 01606 74301 or email gmr@mosshaselhurst.co.uk or kerry.greatorex@mosshaselhurst.co.uk