The Employment Rights Bill has now completed its passage through Parliament and has become law.
On 18 December 2025, the Employment Rights Bill received Royal Assent and was enacted as the Employment Rights Act 2025. Royal Assent is the formal step by which the Bill became an Act of Parliament. The Act introduces additions and amendments to existing employment legislation, including the Employment Rights Act 1996.
The employment law changes contained in the Act will be introduced on a phased basis over a two-year period. Most of the substantive reforms are expected to take effect during 2026 and 2027, with many changes subject to government consultation and commencement through secondary legislation.
Most of the employment law changes have not yet taken effect, and that existing legal requirements continue to apply unless and until the relevant provisions are commenced.
Changes already in force
One change took effect immediately upon Royal Assent:
• The minimum service level rules for strikes were removed on 18 December 2025. These rules, which were intended to maintain service levels during industrial action, no longer apply.
February 2026 changes
The following changes are expected to take effect in February 2026:
• Dismissal for taking part in industrial action will become automatically unfair, removing the current 12-week limit on unfair dismissal protection.
• A number of changes to trade union law, including:
– reduction of the notice period for industrial action from 14 days to 10 days;
– removal of the requirement for a picket supervisor;
– industrial action mandates to last 12 months instead of 6 months;
– simplification of industrial action and ballot notices;
– changes to political fund rules; and
– replacement of turnout thresholds with a simple majority requirement.
April 2026 changes
Further changes are expected to take effect in April 2026, including:
• Paternity leave and ordinary unpaid parental leave becoming day one rights, and removal of the restriction on taking paternity leave following shared parental leave.
• Statutory sick pay to be payable from the first day of illness, with removal of the lower earnings limit.
• The maximum protective award for failure to consult in collective redundancy situations to increase from 90 days’ pay to 180 days’ pay.
• Sexual harassment to become a qualifying disclosure for whistleblowing purposes, providing protection from detriment and unfair dismissal.
• The introduction of voluntary menopause and gender pay gap action plans, with mandatory requirements to follow in 2027.
• Further trade union changes, including simplified recognition processes and the introduction of electronic voting.
• The establishment of the Fair Work Agency, bringing together existing enforcement bodies and extending enforcement to additional employment rights.
October 2026 changes
Subject to consultation and regulations, the following changes are expected in October 2026:
• Dismissal and rehire practices to become automatically unfair in most cases.
• Extension of employer liability for third-party harassment, and a strengthened duty to take all reasonable steps to prevent sexual harassment.
• Reform of tipping law, including consultation requirements and regular review of tipping policies.
• Extension of employment tribunal time limits from three months to six months for all claims.
• Further trade union rights, including duties on employers to inform workers of their right to join a trade union and new rights for union representatives.
• Protection against detriment (in addition to unfair dismissal) for workers participating in industrial action.
• New measures relating to public sector outsourcing to address two-tier workforce issues.
• The establishment of a new Adult Social Care Negotiating Body.
December 2026 change
One sector-specific change is expected in December 2026:
• The introduction of a mandatory Seafarer’s Charter, setting higher standards for health and safety, pay, job security and rest breaks.
2027 changes
ACAS confirms that a number of significant reforms are expected to take effect during 2027, although precise commencement dates have not yet been announced. These include:
• The reduction of the qualifying period for ordinary unfair dismissal from two years to six months.
• Strengthened pregnancy and maternity dismissal protections.
• The introduction of a new statutory bereavement leave entitlement.
• Rights for zero-hours workers to request guaranteed working hours and compensation for cancelled, curtailed or moved shifts.
• Amendments to flexible working law requiring employers to explain and justify refusals based on business grounds.
• Further clarification of the duty to take reasonable steps to prevent sexual harassment.
• Mandatory menopause and gender pay gap action plans.
• Changes to collective redundancy law, including aggregation of redundancies across an organisation.
• Further trade union reforms, including extended protections against discrimination and blacklisting.
• Extension of regulation and enforcement to umbrella companies.
