The Employment Rights Act 2025 represents one of the most significant reforms to UK employment law in recent decades. The changes will be introduced in phases throughout 2026 and 2027 and will affect most employers.
Below is a summary of some of the key developments businesses should be aware of.
Changes from April 2026
Whistleblowing and sexual harassment
Sexual harassment will become a “qualifying disclosure” under whistleblowing legislation. This means workers who report sexual harassment will be protected from detriment and unfair dismissal. This change is expected to come into force on 6 April 2026.
Changes from October 2026
Tribunal claim time limits
Currently, most Employment Tribunal claims must be brought within three months less one day. This time limit is expected to be extended to six months, with the change anticipated to take effect from October 2026.
Third-party harassment
From October 2026, employers are expected to be liable for harassment carried out by third parties (such as customers or clients), unless they can demonstrate that they have taken all reasonable steps to prevent it.
Unfair dismissal
From 2027, the qualifying period for protection from unfair dismissal is expected to reduce from two years to six months’ continuous employment. In addition, the statutory cap on compensation for unfair dismissal is expected to be removed, increasing potential liability for employers.
Wider reforms
These changes form part of a broader package of reforms under the Act, including:
- Day-one rights to paternity and parental leave
- Statutory sick pay payable from day one of absence
- Restrictions on “fire and rehire” practices
- New rights for zero-hours and variable-hours workers
- Enhanced redundancy consultation requirements
- The establishment of a Fair Work Agency to enforce employment rights
What should employers do now?
Employers should begin preparing for these changes by reviewing internal policies, contracts, and procedures. In particular, focus should be given to:
- Family leave and sickness absence policies
- Harassment and whistleblowing procedures
- Flexible working and redundancy processes
- Record-keeping and document retention practices
- Manager and HR training
Important note
The above changes are subject to further confirmation and implementation dates may change as additional regulations are published.
This information is provided for general guidance only and does not constitute legal advice.
Call 0330 107 0106 to speak with our employment law specialists or request a free call back and a member of our team will be in touch. We work with businesses across a wide range of sectors to provide timely and effective legal support when it matters most.
