With the Employment Rights Act 2025 being implemented in stages, we look at what is already in force, what is coming next and what employers should be doing now.

Published: 15 July 2026
Authors: Darlia Williams

With the Employment Rights Act 2025 being implemented in stages, we look at what is already in force, what is coming next and what employers should be doing now.

The Employment Rights Act 2025 is now on the statute book, but it is not yet fully operational. Some reforms are already in force, others are expected later this year, and many of the most significant changes remain subject to further consultation, regulations and guidance.

For employers, the challenge is not simply understanding what the Act says. It is knowing what has changed already, what is coming next and where the detail is still uncertain. That matters because the reforms cover a wide range of core people issues, including family leave, sick pay, collective redundancy, trade unions, industrial action, harassment prevention, tribunal time limits, unfair dismissal, fire and rehire, flexible working, zero and low hours contracts, and non-disclosure agreements.

What has already changed?

The first wave of implementation has focused mainly on trade union and industrial action reform, family leave, statutory sick pay and collective redundancy exposure.

• following Royal Assent in December 2025, the Strikes (Minimum Service Levels) Act 2023 was repealed.

• February 2026 saw many of the Trade Union Act 2016 requirements repealed or simplified, including changes to the content and timing of industrial action notices and ballot notices and an extension to the mandate for taking industrial action. Protection against dismissal for taking protected industrial action has also been strengthened.

• April 2026 was when several individual rights and employer obligations also changed:

  • paternity leave and unpaid parental leave became day one rights
  • statutory sick pay changed with the removal of waiting days and the lower earnings limit
  • the maximum protective award for failures to comply with collective redundancy consultation obligations doubled to 180 days
  • whistleblowing protection was strengthened where workers make qualifying disclosures about sexual harassment. Bereaved Partners’ Paternity Leave also took effect.

• The Fair Work Agency was also established in April 2026, although its full enforcement role is expected to develop as further powers come into force.

Employers should already have reviewed their policies and working practices in these areas. Family leave, absence, statutory sick pay, whistleblowing and redundancy processes should reflect the changes that are now in force.

What is currently under consultation or awaiting further detail?

Several important areas remain subject to consultation, government response or secondary legislation. This means there is still uncertainty around the detail of several reforms, even though the broad direction of travel is clear.

Current or recent areas of focus include non-disclosure agreements, zero hours and low hours contracts, agency workers, trade union access, protection from detriment for taking industrial action, fire and rehire, tipping, flexible working, collective redundancy thresholds, enhanced dismissal protection for pregnant women and new mothers, and bereavement leave.

The zero hours and low hours consultation is likely to be particularly significant for employers who rely on a flexible workforce. The consultation covers the right to be offered guaranteed hours, the right to reasonable notice of shifts and the right to payment where shifts are cancelled, curtailed or moved at short notice. The consultation closes on 25 August 2026.

Key dates for employers

August 2026

Electronic and workplace balloting for statutory trade union ballots is expected to come into force in August 2026. The government has also published draft materials on electronic and workplace balloting, with further detail expected as implementation approaches.

October 2026

October 2026 is expected to bring a substantial package of further changes. These include enhanced trade union access rights, a new duty to inform workers of their right to join a trade union, new rights and protections for trade union representatives, and wider protection from detriment for taking industrial action.

Harassment prevention obligations will also be strengthened. Employers will be required to take all reasonable steps to prevent sexual harassment, and the government’s timeline refers to the introduction of an obligation on employers not to permit harassment of employees by third parties. This will require employers to go further than simply having a policy in place. Training, reporting routes, risk assessments, manager capability and workplace culture will all matter.

Changes to the tips and gratuities regime and public sector outsourcing measures are also expected in October 2026.

January 2027

January 2027 is expected to bring major changes to unfair dismissal and fire and rehire. The unfair dismissal qualifying period will reduce to six months for dismissals from 1 January 2027, and the unfair dismissal compensatory award cap will be removed.

Fire and rehire protections are also expected to come into force in January 2027. Subject to the final regulations, dismissal connected with certain restricted contractual variations is expected to be automatically unfair unless the employer can satisfy the relevant statutory test.

These changes will increase the importance of effective probation periods, early performance management, clear role expectations and well-documented decision-making.

Later in 2027

Further reforms are expected during 2027, although specific dates remain to be confirmed for some measures. These include mandatory action plans on gender equality and supporting employees through the menopause, enhanced dismissal protections for pregnant women and new mothers, collective redundancy threshold changes, flexible working reform, bereavement leave, guaranteed hours and shift scheduling rights for zero and low hours workers, industrial relations framework changes, umbrella company regulation, electronic and workplace balloting for recognition and derecognition ballots, and further non-disclosure agreement reforms.

Although not a provision of the Employment Rights Act 2025, the government has also confirmed that it intends to introduce ethnicity and disability pay gap reporting for employers with 250 employees or more, with timing still to be confirmed.

What should employers do now?

Employers should not wait for every final regulation or code of practice before acting. The direction of travel is clear: greater individual protection, stronger collective rights, wider enforcement and a sharper focus on workplace culture.

There are five practical steps employers should prioritise now:

• review policies affected by changes already in force, including family leave, statutory sick pay, redundancy and whistleblowing policies
• audit policies that will need to change before October 2026, including harassment, trade union, grievance, disciplinary and tribunal risk management processes
• assess probation periods, performance management and dismissal processes ahead of the unfair dismissal changes due in January 2027
• identify where contractual flexibility is relied on, particularly in relation to pay, benefits, shifts, hours and working patterns
• review workforce models involving casual, variable hours, zero hours, low hours, agency and umbrella company arrangements.

Manager training will also be important. The reforms will increase the legal and practical risk around early employment decisions, harassment prevention, employee relations, trade union engagement, flexible working requests, grievance handling and dismissal processes.

What matters next?

The Employment Rights Act 2025 is not a single implementation event. It is a programme of phased reform, with important changes already in force and further reforms due across this year and 2027. The employers best placed to manage the changes will be those that use this year as a planning year, rather than waiting until each commencement date arrives.

For HR and in-house legal teams, the immediate priority is to create a clear implementation timetable, allocate ownership for each workstream and start communicating with the business about what is changing, when it is changing and what practical steps need to be taken.

Shoosmiths’ employment team is continuing to track developments and will provide further updates as consultations close, regulations are published and implementation dates are confirmed.