Explore the new employment laws taking effect in the UK in and how they will impact organisations and their employees.
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Simplifying the complexity in navigating new employment laws
The employment law landscape is facing some of its biggest changes in a generation under the Employment Rights Act. This is set to profoundly reshape HR policies and compliance, but it doesn’t have to be complicated.
We’ve outlined the key changes you’ll need to prepare for and what to expect in the new legislative landscape.
New research paper: Employment Rights Act (ERA) and employee relations transformation
The latest Empowering People Group research shows only 1 in 6 (17%) of organisations have completed an ERA impact assessment in preparation for this new era of employment rights.
The time to act is now. Download the research today for fascinating insights and practical guidance.
How will the Employment Rights Act impact employers?
The Employment Rights Act 2025 is set to reshape how organisations hire, manage and support their people. Through strengthened employee rights, it creates practical challenges for HR and business leaders:
- Are policies and processes ready to adapt to the changes?
- Do managers understand how the changes will impact them day-to-day?
- Are systems in place to meet stricter process scrutiny and risk?
This is the most wide-reaching reform of employee rights we’ve seen in a generation, affecting dismissals, sick pay, flexible working, zero-hours contracts, trade union power, bereavement, equality, and compliance, to name just a few! Organisations that act now to assess the impact and proactively prepare will reduce future risk and avoid costly mistakes.
Here’s what’s changing…
In force 18 December 2025
In force 18 February 2026
Trade unions
The minimum service levels required in the fields of health, transport, education, fire and rescue and other important services cease to apply.
Industrial Action Ballots and industrial action dismissal protection
The support threshold of 40% of those entitled to vote voting in favour of industrial action has been removed. The 50% turnout threshold remains until at least August 2026.
Employers must also not dismiss employees because they take protected industrial action. Any dismissal or disciplinary action of striking employees should be escalated for HR/legal review before action is taken.
In force 06 April 2026
Day-one rights to family leave
Paternity leave and parental leave available from day one. Pay will require qualifying service.
Trade Union Recognition
The rules on trade union recognition will be simplified in order to make it easier for trade unions to get recognition.
Statutory Sick Pay (SSP) reform
Statutory Sick Pay (SSP) will be reformed, meaning:
- It starts from day one of absence
- The earnings threshold is removed
- A tapered rate for low earners will be introduced
This will increase early-stage absence costs for organisations that currently rely on the minimum statutory threshold and three-day waiting period.
Sexual harassment and protected disclosures
The definition of a protected disclosure will include a disclosure that sexual harassment has occurred, is occurring or is likely to occur.
Collective redundancy consultation
Compensation for failure to collectively consult will be increased from 90 days to 180 days’ gross pay.
Bereaved Partners’ Paternity Leave
Bereaved fathers and partners to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the first year of the child’s life. This is a non-Make Work Pay measure, which means it’s not been introduced by the Employment Rights Act, but a separate piece of legislation.
Voluntary gender equality / menopause actions plans
Employers can voluntarily publish action plans on gender equality and menopause support. Larger employers should consider preparing now, as mandatory action plans are expected in 2027.
Holiday records
Employers must keep adequate records of annual leave and holiday pay compliance for 6 years. Payroll, HRIS and holiday recording processes should be checked.
In force 07 April 2026
Fair Work Agency (FWA)
Established to deal with enforcement functions previously carried out by HMRC and other government agencies. It will be given a number of powers including compelling individuals to attend meetings, entering premises to inspect documents and bringing claims on behalf of employees.
Download Employment Rights Act tracker
The Employment Rights Act is complex, so we’ve done the hard work to simplify it for you. Our dynamic tracker distils the essential details into a live resource that updates as the legislation evolves.
Beyond just tracking changes, it identifies the specific updates needed for your contracts, policies and processes. Bookmark the tracker and sign up for our email updates to stay ahead of every requirement.
In force 25 August 2026
Statutory Trade Union Recognition electronic balloting
Statutory balloting for trade unions may be carried out using electronic balloting as opposed to postal or workplace balloting. A new statutory Code of Practice has been published. Recognition/derecognition e-balloting is expected in 2027.
Expected October 2026
Outsourcing and parity of treatment between public sector and private sector workers
Where public services are outsourced to contractors, the contractor’s direct hires cannot be treated less favourably than the public sector workers.
In force 30 October 2026
Enhanced duty to prevent workplace sexual harassment
Employers will need to take ‘all reasonable steps’ to prevent harassment (including sexual harassment) in the workplace and by third-parties.
Find out more about our Preventing Sexual Harassment at Work eLearning course and demonstrate your organisation’s commitment to employee safety and compliance with legislation.
Expanded Trade Union rights and Industrial action detriment protection
New right to a statement of trade union rights and a trade union right of access. Trade union officials and learning representatives are also set to gain rights to facilities and time off.
Employers should ensure managers do not subject workers to detriment for taking industrial action, such as reduced hours, lost opportunities, unfavourable shift allocation or other disadvantage.
End of 2026
Tips and gratuities
Employers will need to consult with a trade union or workers’ representatives (or with workers directly) before introducing policies on how tips and gratuities should be allocated (and reviewed at least every three years).
In force 01 January 2027
Unfair dismissal rights after six months
Unfair dismissal rights will start after six months’ service. The original proposal was for this to be a day one right, but the government announced a change in approach on 27 November 2025. The cap on compensatory awards will also be removed.
Download our Probation playbook overview to find out how we can help your organisation prepare for the six-month dismissal period.
Expected January 2027
Dismissal and re-engagement (fire and rehire)
New right to a statement of trade union rights and a trade union right of access. Trade union officials and learning representatives are also set to gain rights to facilities and time off.
Employers should ensure managers do not subject workers to detriment for taking industrial action, such as reduced hours, lost opportunities, unfavourable shift allocation or other disadvantage.
Expected 2027
Zero-hours and irregular hours contracts
New duty to offer guaranteed/minimum hours contracts to zero hours workers, those on minimum hours contracts and agency workers based on average hours worked in previous reference period (likely to be 12 weeks). New right to compensation where shifts are cancelled or postponed at short notice or where the employee refuses a shift because the employer has not provided reasonable notice.
Dismissals during pregnancy or family related leave
Stronger protection against dismissal for women who are pregnant and for those who are taking or returning from a period of statutory family leave.
Collective redundancy threshold reform
Employers should prepare for collective consultation triggers to be assessed across the organisation, not only at one workplace.
Bereavement leave
Extended to cover a wider class of family members with whom the leave may be associated.
Flexible working requests
You can only refuse a flexible working request on one or more of the statutory grounds if it is reasonable to do so.
Ban on non-disclosure agreements covering harassment and discrimination at work
Any confidentiality clauses in agreements between an employer and a worker (e.g. a settlement agreement) which prevents a worker from making allegations about harassment or discrimination will be void.
Open consultations…
Make Work Pay: workplace monitoring technologies
Timeline – closes 30 September 2026.
The government is seeking views on how to support the fair, transparent and responsible use of workplace monitoring technologies, used to monitor, manage or make decisions relating to workers.
Equal pay and pay discrimination
Timeline – closes 27 October 2026.
The government is consulting on comprehensively reforming the pay discrimination framework including addressing gaps and inconsistencies in the framework currently affecting disabled people, those from ethnic minority backgrounds and outsourced workers.
Time off for public duties
Timeline – closes 04 September 2026.
The government is seeking views on how the right to time off work for public duties operates in practice, and on proposed changes to the list of public duties eligible for time off under this legislation.
Make Work Pay: holiday pay compliance and enforcement
Timeline – closes 22 September 2026.
The Fair Work Agency which was established in April 2026 will be tasked with enforcement functions (e.g. worker’s rights to statutory holiday pay). The government is seeking views on:
- the proposed approach to holiday pay compliance and enforcement
- some of the important design features
- what support and guidance the Fair Work Agency can provide to help support compliance.
Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts
Timeline – closes 25 August 2026.
The government is set to introduce significant restrictions on the use of zero-hour contracts in 2027. Ahead of this, the government is seeking views on reforms relating to zero hours and similar contracts, to implement measures in the Employment Rights Act 2025 to end one-sided flexibility.
Make Work Pay: employment rights for unpaid carers and parents of seriously ill children
Timeline – closes 04 September 2026.
The government is seeking views on employment rights that are available to people with unpaid caring responsibilities and parents to who have seriously ill children.
Closed consultations…
Make Work Pay: misuse of non-disclosure agreements (NDAs)
Timeline – closed (feedback being analysed)
The government consulted on regulations to prevent the misuse of NDAs in workplace harassment and discrimination cases.
The consultation covers when an NDA may still be valid as an “excepted agreement”, who workers may still make disclosures to notwithstanding an NDA, and whether the rules should extend beyond employees and workers to other individuals.
Make Work Pay: Transfer of Undertakings (Protection of Employment) Regulations
Timeline – closed
The government sought views to help inform potential reforms aimed at making TUPE simpler for businesses while strengthening protections for transferring employees.
Make Work Pay: draft code of practice on trade union right of access
Timeline – closed
The government consulted on the draft statutory code of practice for the new framework governing trade union access to workplaces. The code will cover how access requests should be made, how access agreements should be negotiated and implemented, and practical examples of effective engagement.
The revised draft code of practice was laid in Parliament on 6 July 2026, alongside secondary legislation setting out the operational and procedural details of the right of access framework.
Make Work Pay: threshold for triggering collective redundancy obligations
Timeline – closed
The government consulted on the new organisation-wide threshold for triggering collective redundancy consultation and notification obligations. Options include a fixed threshold between 250 and 1,000 redundancies, or a tiered approach based on employer size.
Make Work Pay: fire and rehire – changes to expenses, benefits, and shift patterns
Timeline – closed
The Employment Rights Act 2025 will introduce a new protection for employees by making a dismissal automatically unfair where this is for the purposes of making changes to the core terms of an employee’s contract.
The government consulted on two types of restricted variations in relation to fire and rehire. These are employment expenses and benefits, and shift patterns.
Make Work Pay: improving access to flexible working
Timeline – closed (feedback being analysed).
The Employment Rights Act 2025 is introducing a new process for employers to follow where they are considering rejecting a flexible working request. The government consulted on:
- a proposed new light touch process for employers consulting with employees where a request cannot be immediately agreed
- what training, resources and support can help businesses navigate flexible working requests
- other ways to improve access to flexible working
Make Work Pay: protection from detriments for taking industrial action
Timeline – closed
The government consulted on the types of detriments that employers should be prohibited from imposing on workers for taking official industrial action.
Make Work Pay: modernising the Agency Work Regulatory Framework
Timeline – closed (feedback being analysed).
As the Employment Rights Act 2025 will bring umbrella companies into the legal framework which governs agencies. Accordingly, the government sought views on:
- how the regulatory framework should be adapted to account for the activities of umbrella companies
- what broader changes should be considered in order to modernise the rules
Make Work Pay: strengthening the law on tipping
Timeline – closed
The government is looking to strengthen laws around tipping. Specifically, they sought views on the new requirements for employers to consult with workers when developing and reviewing tipping policies as well as existing law, code of practice and guidance.
A draft updated Code of Practice has been laid before Parliament and is subject to parliamentary approval
Make Work Pay: recognition code of practice and e-balloting unfair practices
Timeline – closed.
The government sought views on the proposed changes to the trade union recognition and derecognition processes. As part of this, the government will need to update the code of practice on access and unfair practices.
Consultations TBC…
‘Reasonable steps’ to prevent workplace sexual harassment
Timeline – 2026-2027
A consultation on what will amount to ‘reasonable steps’ to prevent workplace sexual harassment is imminent and is likely to be announced.
