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Employment Rights Act 2025 updates

The biggest overhaul to employment law in a generation is here.
Is your business ready?


Employment Rights Act 2025: what’s happening, when

Major employment law changes are coming in 2026 and 2027. Get clear on what’s coming first, what needs your attention now, and what you can plan for next.

Get your business ERA ready

ERA impact assessment

Answer a few quick questions and find out where your business may need to focus first.

Guide to ERA changes

Download a simple guide to the key reforms, timelines and actions to consider.

Free HR advice line

Not sure where to start? Speak to a HR expert about what the changes mean for you.

What does the ERA 2025 mean for UK employers?

ERA reforms will affect your business from people management and contracts to working patterns, dismissal, family leave and manager training. Your challenge will be making sure your policies, processes and managers are ready.

Your contracts

Some businesses may need to review contract types, working hours, probation clauses and flexibility arrangements.

Your policies

Handbooks, absence processes, family leave policies and harassment prevention procedures may need a closer look.

Your managers

Line managers may need clearer guidance on probation, dismissal, flexible working requests and employee conversations.

Key ERA changes you need to know about

Statutory Sick Pay reforms

Statutory Sick Pay (SSP) is now payable from the first day of absence, and the lower earnings limit was removed. This means more employees could qualify for support when they’re off sick.

Employment law enforcement body

The Fair Work Agency is the new single enforcement body bringing holiday pay, sick pay and employment rights enforcement under one roof.

Day one family friendly rights

Qualifying periods for Paternity and Parental Leave are being scrapped. Are your family-friendly policies up to date?

Unfair dismissal from six months

Employees will be able to claim unfair dismissal from six months’ service rather than two years. This will apply retrospectively, meaning current staff could gain rights overnight.

Zero and low hours contract rights

Workers on zero and low-hours contracts will have enhanced rights to guaranteed hours and compensation for shift cancellations. Have you reviewed how you schedule and manage these workers?

Flexible working

Employees will have stronger rights when requesting flexible working, while employers will need to explain any refusal clearly and reasonably. Do you have a fair, consistent process in place?

ERA resources, without the legal headache

Explore our latest guides, blogs, webinars and podcasts to understand what’s changing, what it means for your business, and what to do next.

FAQs

  • What is the Employment Rights Act 2025?

    The Employment Rights Act 2025 introduces wide-ranging changes to workplace rights and employer responsibilities. It covers areas including Statutory Sick Pay, family leave, unfair dismissal, zero-hours contracts and employment law enforcement. The changes are being introduced in phases rather than all at once.

  • When do the Employment Rights Act changes come into force?

    There isn’t one single implementation date. Some measures took effect in 2026, while others are expected during 2027. Employers should follow the latest government timeline, as parts of the Act still require regulations, consultation or further guidance before they come into force.

  • Do the Employment Rights Act changes apply to small businesses?

    Yes. The Act does not provide a general exemption for small employers, although the detail and timing may vary between measures. SMEs should review their contracts, policies and people-management processes early rather than waiting for every reform to take effect.

  • How can Citation help us prepare for the Employment Rights Act changes?

    Our HR services and Employment Law services give you practical advice support with contracts, policies, employee issues and everyday people management. You’ll get expert guidance, compliant documentation and tools to help you put the changes into practice.

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