What does the Employment Rights Act 2025 mean for you?

The Employment Rights Act 2025 is the most significant overhaul of UK employment law in a generation.

After passing through Parliament in late 2025, the Act is now law, which will come into effect via a phased rollout, beginning in early 2026. It will bring in significant and wide-ranging changes to the rights of workers, as well as the way employers must treat their workforce.

In a vacuum, the Act will modernise UK employment law, boost job security from day one of employment, and most importantly, strengthen the voice of workers, including trade union members, across the country.

How will the Employment Rights Act benefit you as a worker?

The reforms introduced by the Act will affect nearly every worker in the UK. Key changes include:

Unfair dismissal and job security

Unfair dismissal will become a right after six months of employment from 1st January 2027, reduced from the two-year requirement.

In addition, the Act will remove the statutory cap on compensation for unfair dismissal from 1 January 2027, meaning that for the first time, employment tribunals will be able to award compensation based on a worker’s actual losses without being capped by the current £118,000 limit. The basic award, based on age and length of service, remains the same.

Automatically unfair reasons, such as whistleblowing and health and safety, still remain day one rights under the Act, as they always have been but being dismissed for taking part in industrial action will also be grounds for claiming automatic unfair dismissal

Ending exploitative fire-and-rehire

Fire and rehire, where an employer dismisses staff and then rehires them on worse terms and conditions, is heavily restricted under the Act.

From October 2026 such dismissals will automatically be considered unfair, unless an employer can prove severe financial necessity, and that they have exhausted all other options.

The right to request flexible working

The right to request flexible working arrangements will be strengthened from 2027, and employers will need to explain their reasons for rejecting a flexible working request and specify why they believe the refusal is reasonable.

Better rights from day one

Several vital protections shall become day-one rights under the Employment Rights Act, including:

• Paternity leave (from April 2026)
• Unpaid parental leave (from April 2026)
• Bereavement leave (including provisions for pregnancy loss, expected from 2027)

Statutory Sick Pay (SSP) reform

SSP will be paid from the very first day of illness, instead of the fourth day. Additionally, the Lower Earnings Limit for SSP eligibility has been removed from April 2026, extending this vital lifeline to lower paid and part-time workers who were previously not eligible.

Ending exploitative zero- hour contracts

The Act will put an end to exploitative practices in 2027 by giving workers on zero or low hour contracts the right to guaranteed hours in their contract (based on their average hours worked over a 12-week period).

It also introduces the right to reasonable notice for shifts ,and compensation for shifts cancelled at short notice.

Protecting tips

Employers will legally be required to pass 100% of tips to staff without deductions in October 2026.

Furthermore, they must have a clear and fair policy on how tips are allocated, which they must consult on with staff or union representatives, which will need to be updated every 3 years.

Stronger protections against sexual harassment

You will be able to bring a claim for whistleblowing if you are subjected to a detriment for raising an allegation of sexual harassment. Employers will face a much stronger legal duty to take “all reasonable steps” to prevent sexual harassment in the workplace in 2027.

In addition, there will be protection against harassment by third parties, such as customers and clients.

How will the Employment Rights Act benefit you as a Community Union member?

In addition to the protections and enhancements above, the Employment Rights Act will also introduce several specific measures to simplify trade union activity and strengthen the collective voice of workers. These include:

Right to access workplaces

The Act introduces a stronger legal right for trade unions like Community to access workplaces to meet, recruit and organise workers.

Electronic balloting

In a major win for modernising trade unions, we can now use electronic voting for ballots of industrial action in April 2026.

Duty to inform workers

Employers will have a legal obligation to inform all new workers in writing of their right to join a trade union from October 2026.

Recognition made easy

The process for trade unions to gain statutory recognition with an employer will be simplified from April 2026, making it much easier for unions to represent workers and collectively bargain on pay and conditions.

Enhanced facility time for union representatives

Union representatives will receive enhanced rights to paid time off and facilities to undertake their duties as a rep from October 2026.

Protection for striking workers

The protection for workers taking part in lawful industrial action has been strengthened under the Act, protecting them from being subjected to a detriment for taking part in strike action and this will take effect from October 2026.

The Fair Work Agency

A new, single enforcement body – the Fair Work Agency – will launch in April 2026 to ensure employers follow the new laws implemented by the Employment Rights Act, specifically around holiday pay and the new minimum wage.

When does the Employment Rights Act 2025 come into force?

The Employment Rights Act 2025 will be implemented in phases that began the moment the Bill received royal assent on 18 December 2025.

The table below breaks down the phases, what dates they are expected to take effect, and what changes will be introduced:

The Employment Rights Act 2025 provides the security and dignity that UK workers have needed for decades, finally bringing UK employment law into the modern age.

For Community members and reps, it provides us with the tools to organise more effectively and ensures our role in the workplace is legally reinforced.