The Employment Rights Bill received Royal Assent on 18 December 2025 and is now law in the form of the Employments Right Act 2025 (ERA 2025), representing the most significant reform of UK employment legislation in a generation.

This landmark legislation aims to provide workers with enhanced protections whilst modernising workplace practices to reflect contemporary employment relationships.

Whilst the changes won’t take immediate effect – implementation will occur gradually between 2026 and 2027 – both employers and employees should begin preparing for these substantial shifts in workplace rights.

Unfair Dismissal: Enhanced Early Protection

One of the most significant changes concerns unfair dismissal protections. From January 2027, the qualifying period for bringing an unfair dismissal claim will reduce from two years to six months. This means employees will gain legal protection against unjust termination considerably earlier in their employment journey.

However, employers should note that an initial probationary period will still apply, during which fair and transparent processes must be followed before any dismissal takes place.

Flexible Working Becomes a Day One Right

The legislation elevates flexible working from a right to request (available to employees who have satisfied the 26 weeks’ qualifying period) to a Day One right. As such, from 2027, the ERA 2025 will introduce additional obligations upon employers when dealing with flexible working requests. Critically, employers who decline such requests must provide clear, reasoned explanations for their decision. This change recognises the evolving nature of work and the importance of work-life balance, particularly following shifts in working patterns since the pandemic.

Statutory Sick Pay: Broader Access and Earlier Payment

Statutory Sick Pay will undergo two crucial reforms as of 6 April 2026. Firstly, the Lower Earnings Limit (currently £125 per week in 2025 – 2026) will be abolished, meaning all employees will be eligible for SSP regardless of their earnings level. Secondly, the three-day waiting period before SSP becomes payable will be removed, with payment commencing from Day One of sickness absence. These changes should reduce financial hardship for workers who fall ill, particularly those in lower-paid employment who were previously excluded from SSP entitlement.

Zero-Hours and Low-Hour Contracts: Guaranteed Hours and Fair Notice

The legislation introduces significant protections for workers on zero-hours contracts who work regular hours over a defined reference period. In 2027, these workers will gain the right to request guaranteed hours that reflect their typical working pattern. Additionally, employers must provide reasonable advance notice of shifts and compensate workers for shifts cancelled at short notice. These provisions aim to provide income stability whilst preserving the flexibility that some workers and employers value in these arrangements.

Enhanced Parental Rights from Day One

Under the new legislation, from 6 April 2026, both statutory paternity leave and unpaid parental leave become Day One rights, with the continuous qualifying service period removed entirely*. Further, the prohibition on taking paternity leave after having taken shared parental leave has been scrapped. These changes ensure that all working parents can access necessary leave regardless of tenure with their employer.

*A transitional provision shall temporarily reduce the notice period required to exercise the right to take paternity leave, from 15 weeks before the expected week of childbirth to 28 days for those with an expected week of childbirth between 5 April 2026 and 25 July 2026.  

Bereavement Leave for Pregnancy Loss

The ERA 2025 establishes an entitlement to Bereavement Leave as a Day One unpaid right for employers who experience the loss of a loved one, including for pregnancy loss.

The legislation states that the bereavement leave duration must be a minimum of one week, and that the bereaved person must have at least 56 days to take the leave, although both of these provisions could be extended further in regulations. It also provides protection around redundancy and dismissal.

For pregnancy loss in particular, the ERA 2025 introduces a new statutory right to two weeks’ unpaid leave following pregnancy loss before 24 weeks of gestation. This addresses a significant gap in current employment law, which provides no specific entitlement for this distressing circumstance. Whilst the introduction of this right represents important progress, some commentators have questioned whether two weeks of unpaid leave provides adequate support during such a difficult time.

Restrictions on Fire and Rehire

The controversial practice of “fire and rehire” – where employers dismiss employees and re-engage them on inferior terms – will face significant restrictions. Whilst not banned entirely, the legislation makes this practice far more difficult to execute lawfully. Employers will need to demonstrate that such action is genuinely necessary and that proper consultation has occurred. Dismissals primarily aimed at forcing detrimental contractual changes will likely be deemed automatically unfair.

This change was initially expected in October 2026, but will now take effect on 1 January 2027.

Enhanced Redundancy Consultation and ‘Protective Award’

The maximum ‘protective award’ for failure to consult in a collective redundancy scenario will double from 90 days’ pay to 180 days’ pay.

The ERA 2025 also introduces an additional threshold, such that the duty to consult will be mandatory if (1) an employer proposes to dismiss as redundant 20 or more employees at one establishment within a 90-day period; or (2) the new employer-wide threshold is reached by aggregating proposed redundancies across the company, regardless of location.

The new employer-wide threshold will be set by future regulations. We may find that this will be triggered based on a percentage-based test or an absolute number.

For larger-scale redundancies, employers will therefore face strengthened obligations regarding consultation and notification. The legislation extends timescales and requires more detailed information to be provided to affected employees and their representatives at an earlier stage. These enhanced procedures aim to ensure workers receive adequate notice and opportunity to engage meaningfully with redundancy proposals that affect their livelihoods.

Implementation and Preparation

The phased implementation through 2026 and 2027 provides employers with time to review and update their policies, procedures and contracts. However, preparation should begin now, as compliance will require significant changes to many organisations’ employment practices.

For guidance on how these employment law changes may affect your business or your rights as an employee, please contact 

Jai Sharda | Partner |Jai.Sharda@williamsturges.co.uk