Major Changes for Employers
The Employment Rights Act 2025 introduces a programme of reforms leading to 2027, reshaping both employer obligations and employee rights. Antonio Fletcher, Head of Employment at Whitehead Monckton, breaks down the biggest shake-up in UK employment law in a generation:
From April 2026
Day One Family Friendly Rights
Immediate access to paternity leave, unpaid parental leave, shared parental leave, parental bereavement leave and carers’ leave, increasing flexibility for working parents.
Statutory Sick Pay (SSP) Reform
SSP payable from day one of sickness, the Lower Earnings Limit is abolished, and the rate increased, extending eligibility to part-time and lower-paid workers, and increasing employer costs.
Whistleblowing and Collective Redundancy
Those raising concerns about sexual harassment will obtain whistleblower protections. The protective award for failure to adequately collectively consult in redundancy situations doubles, and a new Fair Work Agency is created to oversee enforcement.
From October 2026
Employment Tribunal Claims
Timeframe for issuing employment tribunal claims extends from 3 to 6 months, aiming to allow more time to settle a complaint before a claim needs to be issued. However, extra claims may be issued due to this extended deadline.
Ban on Fire and Rehire
Abilities to end employment on notice and immediately offer different employment terms become greatly restricted, demanding more robust consultation processes and alternative strategies for contract variation.
Expanded Trade Union Rights
Added responsibilities for employers and greater access to workforces for unions.
Preventing Sexual Harassment
The existing requirement to protect employees through ‘reasonable steps’ becomes an obligation to take ‘all reasonable steps.’ At minimum, you’ll need clear policies, mandatory staff training, manager training and evidence of proactive prevention.
From 2027:
Day One Unfair Dismissal — Modified
Instead of true day one rights, a six-month qualifying period applies, allowing a meaningful probationary period while strengthening employee protection.
Mandatory Action Plans
Employers required to publish gender pay gap and menopause action plans, shifting reporting from transparency to accountability.
Pregnant Workers’ Rights
Additional protections throughout pregnancy, maternity leave and for a period after return to work reduce the risk to employees of discrimination or unfair dismissal. Employers need to handle performance, conduct and redundancy processes with increased care.
Zero Hours Contract Protections
New rights to predictable working hours, minimum notice for shifts and compensation for late cancellations.
What Employers Should Do Now
• Audit policies and contracts – including family-friendly policies, sickness procedures, dismissal processes, zero hours contracts and harassment procedures.
• Train managers and staff – especially on dismissal, harassment prevention and family leave rights.
• Strengthen HR governance – ensuring accurate records, transparent processes and consistent decision making.
• Budget for increased costs – particularly SSP and expanded leave rights.
• Engage early with workforce representatives – as union rights expand and fire and rehire becomes restricted.
For employees…
Understand your rights and how they’ve changed and seek early legal advice if you’re concerned.
How Whitehead Monckton Can Help?
Whitehead Monckton’s Employment Law team supports individuals and organisations across sectors, including education, manufacturing, construction, professional services, SMEs and start-ups. Working closely with HR consultancy Eclipse HR, we provide seamless legal and HR support to help employers navigate all aspects of employment law with confidence.