The Employment Rights Act 2025 is set to bring some of the most significant changes to employment law in England and Wales in recent years. With reforms being introduced in phases throughout 2026, employers need to understand what is changing and how to prepare to remain compliant and reduce legal risk.
A Phased Rollout Throughout 2026
The Act is being implemented in stages, with different provisions taking effect in early 2026, April 2026, and October 2026. This phased approach gives employers limited time to review existing policies, employment contracts and workplace practices.
Early changes introduced following Royal Assent in December 2025 focus on industrial relations, including the repeal of minimum service level requirements during strikes and stronger protections for employees taking part in lawful industrial action.
Key Changes Taking Effect from April 2026
April 2026 marks the introduction of several substantial reforms that will directly affect day-to-day workforce management.
One of the most notable changes is the reform of statutory sick pay. The lower earnings limit will be removed, and statutory sick pay will become payable from the first day of absence. This change will increase employer obligations, particularly for lower-paid and short-term employees.
In addition, the right to paternity leave and unpaid parental leave will become day-one rights, removing previous minimum service requirements. Employers will need to ensure their family leave and absence policies are updated accordingly.
Whistleblowing protections will also be strengthened, with disclosures relating to sexual harassment explicitly confirmed as protected disclosures. This reinforces the importance of robust reporting procedures and clear internal policies.
Trade union recognition processes will be simplified, increasing the likelihood of union activity in some workplaces. At the same time, enforcement responsibilities for national minimum wage, statutory sick pay and holiday pay will move under the oversight of the new Fair Work Agency.
Employers should also be aware that the maximum protective award for collective redundancy consultation failures will double from 90 days’ pay to 180 days’ pay, significantly increasing potential financial exposure.
October 2026: Fire and Rehire and Harassment Duties
Further changes will take effect from October 2026, including major restrictions on the practice commonly referred to as “fire and rehire”. Dismissals linked to refusing contractual changes will be automatically unfair unless the employer can demonstrate significant financial difficulty.
Employers will also be placed under a new duty to take all reasonable steps to prevent sexual harassment and third-party harassment in the workplace. While further guidance is expected, employers should begin reviewing training, reporting mechanisms and preventative measures now.
In addition, trade union equality representatives will gain new statutory rights, including time off and access to workplace facilities.
Preparing for What Comes Next
Although some reforms extend into 2027, employers should begin preparing in 2026. Reviewing sickness absence, family leave, whistleblowing and redundancy procedures will be essential. Recruitment and probation processes should also be assessed in anticipation of future unfair dismissal changes.
Early planning and clear legal advice can help employers adapt confidently to these reforms, minimise disruption, and reduce the risk of costly disputes.