After more than a year of discussion and anticipation, the Employment Rights Bill has officially become law, receiving Royal Assent on 18 December 2025. The Act marks a significant shift in employment law, introducing the biggest changes in employment law and practices for over a decade. The changes will impact HR practices across organisations.
With the first measures set to be implemented in April 2026, it’s important that employers proactively prepare for the changes to ensure compliance and adapt workplace policies accordingly. To help you prepare, we outline the summary changes in order of implementation.
Family leave enhancements (April 2026)
Family leave rights are significantly expanded:
- Day-one rights to unpaid parental leave and paternity leave.
- Bereavement leave extended to include pregnancy loss before 24 weeks.
Actions:
- Update family leave policies to incorporate new statutory entitlements.
- Educate managers on supporting employees during bereavement and pregnancy loss.
- Create clear communication materials to ensure employees understand their rights.
Statutory sick pay changes (April 2026)
The Act simplifies statutory sick pay (SSP) entitlements:
- SSP will be payable from day one of sickness absence, removing waiting days.
- All employees, regardless of income, will be entitled to SSP.
Actions:
- Review sickness absence policies and payroll systems to accommodate SSP changes.
- Communicate the new entitlements to employees and managers.
- Monitor sickness absence trends to manage potential increases in costs.
Trade union access and recognition (April and October 2026)
The Act simplifies union recognition processes and strengthens trade union rights:
- From April 2026: Establishment of the new Fair Work Agency and simplified trade union recognition process.
- From October 2026: Further trade union rights, including strengthened access rights for independent trade unions.
Actions:
- Integrate trade union rights into onboarding and HR communications.
- Establish protocols for handling union access requests.
- Ensure compliance with new recognition requirements and maintain accurate records.
Workplace harassment protections (October 2026)
Employers will face new duties to prevent workplace and third-party harassment:
- A legal duty to take all reasonable steps to prevent harassment.
- Liability arises if harassment occurs due to insufficient preventative measures.
Actions:
- Conduct workplace risk assessments to identify potential harassment risks.
- Develop robust anti-harassment policies and reporting mechanisms.
- Train staff and managers on recognising, preventing, and addressing harassment.
Fire and re-hire restrictions (October 2026)
The Act introduces new protections against fire-and-rehire practices:
- Certain variations to employment terms will be restricted.
- Dismissals linked to restricted variations will be automatically unfair.
HR Actions:
- Audit employment contracts for variation clauses and assess their compliance.
- Train managers on alternative approaches to renegotiating terms.
- Develop consultation processes to manage changes collaboratively with employees.
Unfair dismissal protections (January 2027)
Perhaps the most anticipated and debated change being introduced, the Act introduces enhanced unfair dismissal protections, including:
- A six-month qualifying period for unfair dismissal claims, replacing the current two-year threshold.
- Removal of the statutory cap on compensatory awards, allowing higher payouts for unfair dismissal claims.
Actions:
- Review probationary period processes to align with the new six-month qualifying period and provide sufficient opportunity to review new recruits in a timely manner.
- Train managers on fair dismissal procedures to mitigate risks of costly claims.
- Update recruitment and onboarding practices to ensure clear documentation and fair treatment during probation.
Zero-hours contracts and guaranteed hours offers (2027)
The Act imposes stricter regulations on zero-hours contracts:
- Employers must offer guaranteed hours to qualifying workers based on average hours worked during a reference period.
- Workers will have rights to reasonable notice of shifts and compensation for late changes or cancellations.
Actions:
- Audit current zero-hours and agency worker arrangements to identify qualifying workers.
- Develop internal protocols for offering guaranteed hours and managing shift changes.
- Ensure compliance with notification and compensation requirements, while minimising administrative burdens.
Flexible working (2027)
The Act strengthens employees’ rights to request flexible working:
- Requests must be granted unless refusal is reasonable and based on statutory grounds.
- Consultation with employees before rejecting a request becomes mandatory.
HR Actions:
- Review and update flexible working policies to reflect stricter requirements.
- Train managers on handling flexible working requests sensitively and fairly.
- Implement clear procedures for consultations, appeals, and record-keeping.
Equality Action Plans (2027)
- Large employers will be required to publish equality action plans.
- Plans must address prescribed gender equality matters, such as reducing the gender pay gap and supporting employees through menopause.
Actions:
- Begin developing an equality action plan, even before regulations are finalised.
- Gather relevant data on gender equality metrics and identify areas for improvement.
- Ensure senior leadership is engaged in driving gender equality initiatives.
Annual leave records (2027)
- Employers will be required to keep records of workers’ annual leave for six years.
- Non-compliance will result in fines.
Actions:
- Implement systems to track and retain annual leave records securely.
- Audit existing records to ensure compliance with the six-year retention requirement.
- Train HR teams on record-keeping best practices.
The Employment Rights Act introduces a wide range of changes that will reshape employment practices across sectors. By acting now to review policies, train staff, and implement necessary systems, you can ensure compliance and support employees effectively during this transition. While the Act presents challenges, it also offers opportunities to foster a fairer and more inclusive workplace.
You can track the progress of the Act and the regulations accompanying it Employment Rights Act tracker.
