The Employment Rights Act 2025 (ERA 2025) received Royal Assent on 18 December 2025.
It amends the law relating to employment rights to enhance employee protections, bringing major changes throughout 2026 and 2027.
With key provisions now coming into force, our Employment Lawyers focus on the key reforms expected in April 2026, which employers should prepare for.
Explore the Key Changes
Upcoming changes to employment law in April 2026
A number of key employment law changes take effect in April 2026.
The main reforms are outlined below:
Trade Union Levy
Current law
The Trade Union Act 2016 allows the Certification Officer (“CO”) to charge an annual levy on trade unions and listed employers’ associations. The levy is calculated mainly by the size of the organisation (such as membership levels), so larger unions pay more. This levy contributes to the CO’s regulatory functions.
New law under the ERA 2025
The ERA will repeal the annual levy that trade unions and employer associations pay to the CO. It removes the requirement for the CO to report on the levy and removes the Secretary of State’s power to impose such a levy in future.
Date of change
1 April 2026
What should employers do?
Employers do not generally need to take any specific action. From 1 April 2026, payments to the CO cease and the regulator returns to government funding.
Collective Redundancy Protective Award
Current law
Under the current law, employers proposing to dismiss 20+ employees at one establishment within a 90-day period must carry out collective consultation with appropriate employee representatives. If the employer fails to comply, affected employees may bring a claim and the tribunal may award up to 90 days’ gross pay per affected employee.
New law under the ERA 2025
The maximum protective award for an employer’s failure to collectively consult about redundancies will double from 90 to 180 days’ pay.
Date of change
6 April 2026
What should employers do?
Employers should keep accurate records of any redundancies made and proposed to help identify when the relevant threshold might be triggered, as well as taking legal advice, so as to avoid the risk of claims for this increased protective award.
Paternity Leave
Current law
Currently, statutory paternity leave requires 26 weeks’ continuous service with an employer by the 15th week before the baby is due or the adoption placement. Statutory paternity pay also requires 26 weeks’ service, but this will remain unchanged.
New law under the ERA 2025
Paternity leave (not statutory paternity pay) will become a day one right for eligible employees. In addition, employees will be able to take statutory paternity leave after a period of shared parental leave.
Date of change
6 April 2026
What should employers do?
Employers should review and update policies on paternity leave and consider any impact on contractual enhancements.
Unpaid Parental Leave
Current law
Unpaid parental leave requires one year of continuous service to qualify.
New law under the ERA 2025
Subject to the other eligibility criteria, unpaid parental leave will become a day-one right.
Date of change
6 April 2026
What should employers do?
Employers should review and update policies on parental leave and consider any impact on contractual enhancements, if any.
Whistleblowing and Sexual Harassment
Current law
Under the ERA 1996, a worker is protected from dismissal or detriment if they make a qualifying protected disclosure (meaning they disclose information which they reasonably believe shows a type of wrongdoing, and that disclosure is made in the public interest). Sexual harassment is not currently included as a type of qualifying disclosure.
New law under the ERA 2025
Whistleblowing legislation will be amended so that the definition of qualifying disclosure includes a worker making a disclosure that sexual harassment has occurred, is occurring or is likely to occur. This provides clarification that workers who report such conduct are protected.
Date of change
6 April 2026
What should employers do?
Employers should amend whistleblowing policies to ensure that complaints of sexual harassment are explicitly referred to as a type of information which can be a qualifying disclosure, and also refresh training for employees and managers on whistleblowing protection and policies.
Statutory Sick Pay
Current law
Currently, the Statutory Sick Pay (“SSP”) regime requires employees to serve three unpaid “waiting days”, meaning SSP is only payable on the fourth consecutive day of sickness, and employees must earn at least the lower earnings limit (£125 per week) to qualify for SSP.
New law under the ERA 2025
The waiting period will be abolished and SSP will be payable from the first day of absence. There will also be no lower earnings limit, with the rate of SSP to be the lower of the statutory SSP rate and 80% of normal earnings.
Date of change
6 April 2026
What should employers do?
Employers should budget for higher statutory sick pay costs and consider amending any company sick pay schemes which are currently drafted around the SSP framework.
Gender Equality and Menopause Action Plans
Current law
There is currently no obligation for employers to produce a gender equality action plan or a menopause support action plan.
New law under the ERA 2025
Employers are asked to voluntarily create action plans on gender equality and supporting employees through the menopause. From 2027, these will become mandatory for employers with 250+ employees.
Date of change
6 April 2026
What should employers do?
As best practice, employers should consider and create the action plans now, in readiness for them becoming mandatory in 2027.
Menopause Guidance
Current law
In March 2026, the government published employer guidance to support the rollout of the ERA 2025 provisions on menopause action plans. In 2019, ACAS also published guidance on menopause and the workplace.
New law under the ERA 2025
The government will release further employer guidance on creating action plans for supporting employees going through the menopause.
Date of change
6 April 2026
What should employers do?
Employers should refer to the guidance in readiness for creating the voluntary menopause action plans in April 2026 and the compulsory plans in 2027 (see above).
Trade Union Recognition
Current law
Under the current regime, a union must demonstrate that a majority of workers in the proposed bargaining unit are likely to support recognition, and if the case proceeds to a ballot, there must be a 40% turnout threshold for the vote to succeed.
New law under the ERA 2025
The ERA 2025 is simplifying the trade union recognition process. Unions no longer have to show likely majority support at the application stage, and the 40% turnout requirement in ballots is abolished so that a simple majority of votes cast is sufficient for recognition. Also, the threshold for the recognition application can be set lower (potentially between 2% and 10% of the bargaining unit).
Date of change
6 April 2026
What should employers do?
Employers do not need to take any specific action in response to this change, but must be aware that there will be more scope for trade unions to be recognised and to widen the bargaining units. Employers should ensure they have good relationships with their trade unions and have employee consultancy bodies with which they engage regularly.
Bereaved Partner’s Paternity Leave
Current law
Under the ERA 1996, bereaved fathers or partners have no special statutory entitlement and are limited to the ordinary paternity leave (two weeks leave subject to a 26-week service requirement) where the mother or adopter of a child dies within one year of childbirth or adoption.
New law under the ERA 2025
Although not part of the ERA, changes to bereaved partners’ paternity leave are proposed to come into force at the same time as other ERA changes. It will provide a right of up to 52 weeks' bereaved partner's paternity leave where the child's primary carer (usually the mother or other adoptive parent) has died within 52 weeks of the birth or adoption placement. This will apply where the bereavement takes place on or after 6 April 2026.
Date of change
6 April 2026
What should employers do?
Employers should amend their paternity policies and consider any impact or interaction with any company paternity pay.
Annual Leave Record Keeping
Current law
There is currently no specific statutory duty for employers to keep detailed annual leave records.
New law under the ERA 2025
Employers will be under a statutory duty to keep adequate records of workers’ statutory annual leave entitlement and the annual leave actually taken, including:
• paid statutory leave;
• any carried over leave;
• any leave accrued under the irregular hours or part year worker regimes.
Date of change
6 April 2026
What should employers do?
Employers should ensure they have robust systems in place to record statutory annual leave accrual, taken leave, and any carry over.
Employers should update policies and internal processes to reflect the new record keeping obligations.
Vento Bands
Current law
The following bands (known as the “Vento bands”) apply to injury to feelings awards in discrimination and whistleblowing claims.
The bands are currently:
- Lower band: £1,200 to £11,700
- Middle band: £11,700 to £35,200
- Upper band: £35,200 to £58,700
- Exceptional cases: £58,700+.
New law under the ERA 2025
The new Vento bands will be as follows:
- Lower band: £1,300 to £12,600 (less serious cases)
- Middle band: £12,600 to £37,700
- Upper band: £37,700 to £62,900 (the most serious cases)
- Exceptional cases: £62,900+.
Date of change
6 April 2026
What should employers do?
Employers should be aware of the increases to the Vento bands and budget slightly higher for any potential claims and settlements and also adjust settlement strategies accordingly. It’s also always a good idea to do refresher training for managers on discrimination in the workplace and handing grievances etc.
Fair Work Agency
Current law
At present, the majority of employment rights are enforced by individuals bringing a claim in an employment tribunal. Some limited rights are enforced by the state on behalf of workers but via a fragmented group of bodies.
New law under the ERA 2025
The ERA creates a new public enforcement body called the Fair Work Agency, replacing all existing enforcement functions spread across different bodies. This will enforce national minimum wage, holiday pay, statutory sick pay, modern slavery, and agency worker rights.
Date of change
7 April 2026
What should employers do?
Employers should consider undertaking an internal audit to ensure compliance in respect of national minimum wage, holiday pay, SSP, modern slavery and agency worker rights.
What does this mean for employers?
The imminent changes outlined above, whilst not the most controversial of the changes under the ERA 2025, will still have an impact on employers and should all be noted and actioned accordingly.
Employers should document decisions more carefully, invest in HR processes and legal advice, and act earlier. Employers should also update their policies in readiness for these changes.
If your business requires assistance with updating policies and obtaining employment law advice, please contact our specialist Employment Team.
What changes has the ERA 2025 already brought into force?
December 2025
On 18 December 2025, the ERA 2025 immediately repealed the Strikes (Minimum Service Levels) Act 2023, which set minimum service levels for strikes in key/emergency sectors.
Employers do not need to take any specific action regarding this change, however, it is important to ensure you have a good relationship with your trade unions or have employee consultancy bodies which you engage with regularly.
February 2026
On 18 February 2026, the ERA 2025 repealed the vast majority of the Trade Union Act 2016, simplifying requirements on trade unions in respect of ballot and action notices. The ERA 2025 reduced the notice for strike action from 14 days to 10 days and increased the mandate for strike action from 6 months to 12 months. It also reduced the amount of information that trade unions are required to give in notices to ballot and notices of strike action.
Employers with recognised trade unions should be aware that strikes may become more frequent and more difficult to challenge on validity grounds where there is a dispute.
Watch Our Employment Law Spring 2026 Update
This session covers the implications of the Employment Rights Act 2025, upcoming legislative changes, AI in the workplace, discrimination risks, and practical steps employers should take to remain compliant and mitigate risk.
Earlier Overview of the Employment Rights Act 2025 (Published January 2026)
Employment Rights Act 2025 A Summary for Employers
The much-anticipated Employment Rights Bill received Royal Assent on 18 December 2025, becoming the Employment Rights Act 2025 (ERA 2025).
The ERA 2025 introduces significant employment law reform and aims to modernise and extend employment protections to millions more workers.
Whilst certain industrial action reforms, including repealing the minimum service level restrictions on strike action, took effect immediately, the majority of the key reforms are being implemented in phased stages throughout 2026 and 2027.
Our Employment Lawyers summarise the key reforms and expected implementation dates which employers should prepare for.
This section reflects the position as at January 2026 and should be read alongside the updates above.
Unfair Dismissal Rights and Compensation
Following pushback from the House of Lords against ‘day-one unfair dismissal rights’, the last-minute changes to the Bill ultimately mean that employees will gain the right not to be unfairly dismissed after a qualifying period of six months.
It is currently anticipated that this qualifying period will take effect from 1 January 2027, meaning in practice that employees commencing work from 1 July 2026 should qualify for this protection under the current implementation timetable. Employers may therefore wish to consider introducing appropriate probationary periods or reviewing existing probationary procedures to assess the performance of new starters regularly.
The removal of the current statutory cap on unfair dismissal compensation was a last-minute alteration to the Government’s initial proposals and is presently assumed to be implemented at the same time as the qualifying period reform (1 January 2027).
This change aligns unfair dismissal claims with discrimination and whistleblowing claims, which also do not have an upper limit on compensation.
Collective Redundancies
The current threshold for collective redundancy consultation is triggered when employers propose 20 or more redundancies “at one establishment” within a period of 90 days.
The ERA 2025 introduces an additional threshold, which will involve a second trigger for collective redundancy consultation obligations alongside the existing threshold. Whilst this second threshold will be set out in future regulations expected in 2027, it is envisaged that it will involve a number of redundancies across an employing entity.
Additionally, the ERA 2025 has increased the financial penalty for non-compliance with collective consultation obligations by doubling the cap on the protective award to 180 days’ pay per employee from April 2026 (the cap has now been implemented - see April 2026 updates above).
As a result, taking legal advice for collective redundancies will become increasingly important to ensure legal compliance for any redundancy scenarios planned from early 2026 onwards.
Fire and Rehire
‘Fire and Rehire’ reforms introduced by the ERA 2025 will restrict an employer’s ability to impose changes to key contractual terms (pay, working hours, pension and holiday entitlements or anything else specified in future regulations) as it will become automatically unfair to dismiss an employee for refusing to agree to changes to key contractual terms, except in extreme circumstances of financial difficulty.
Furthermore, the ERA 2025 extends ‘fire and rehire’ provisions to ‘fire and replace’ scenarios where contractors or agency workers replace employees to complete substantially the same work.
The fire and rehire/fire and replace reforms are due to be implemented in October 2026, following which employers will have less flexibility to change key contractual terms.
Zero-Hours Contracts
Under reforms to zero-hours contracts expected in 2027, employers will be obliged to offer an employment contract with guaranteed hours to ‘qualifying workers’.
The exact details of this reform will be shaped by consultation and future regulations, but the overall purpose is to provide workers with greater predictability of the hours they work.
Additionally, employers will be required to provide reasonable notice of both shifts and shift cancellations for zero-hour and agency workers.
If there is a shift change at ‘short notice’, employers will be required to make a proportionate compensation payment.
However, as with the guaranteed hours provisions, what constitutes ‘reasonable notice’, ‘short notice’, and the compensation payment will be discussed in consultation and outlined in future regulations.
Family Rights and Flexible Working
The ERA 2025 removes the current 26-week qualifying period for paternity leave and the current one-year qualifying period for unpaid parental leave, essentially making paternity and unpaid paternity leave a ‘day one’ right for employees from April 2026. These changes are now in force (see April 2026 updates above).
Parental bereavement leave will also be extended to include the loss of other family members and to cover early pregnancy loss.
Again, the precise details of which family relationships will be covered by the bereavement leave provisions will be addressed by future regulations.
The ERA 2025 also provides for the extension of current enhanced redundancy protections for pregnant women and those returning from family leave which currently require these individuals to be prioritised in being offered a suitable alternative vacancy in redundancy situations.
Under the ERA 2025, any dismissal of pregnant employees, those on maternity leave and within six months of their return to work from maternity leave will be prohibited, except in specific circumstances determined by future regulations.
The ERA 2025 also provides for similar enhanced dismissal protections for employees returning from other forms of family leave, including adoption or shared parental leave.
Whilst reforms to bereavement leave and the above-mentioned enhanced dismissal protections are not expected until 2027, employers should be mindful of the changes and may contemplate updating their policies ahead of this date.
Equality Reporting
Employers with 250 or more employees will be required, initially on a voluntary basis from 2026 before becoming mandatory in 2027, to publish equality action plans on the gender pay gap and on supporting employees through the menopause.
Employers should also note that the UK Government is also considering a separate requirement for ethnicity and disability pay gap reporting for large employers, which will be the subject of individual legislation.
Harassment
Employers will undoubtedly be aware of their existing obligations to take ‘reasonable steps’ to prevent sexual harassment of their employees.
However, the ERA 2025 expands this obligation, requiring employers to take ‘all reasonable steps’ to prevent sexual harassment.
Further regulations setting out what steps employers will be expected to take are due in 2027; however, the general consensus is that these requirements are likely to be more onerous for employers.
Additionally, from October 2026, employers will also be liable for harassment by third parties, such as clients or suppliers, unless the employer can demonstrate that they took all reasonable steps to prevent the harassment.
The ERA 2025 also clarifies that a sexual harassment complaintis now treated as a qualifying disclosure from April 2026 under whistleblowing law and prohibits employers from including confidentiality clauses which prevent employees from disclosing or raising allegations of harassment or discrimination, by making such clauses void.
Fair Works Agency and Employment Tribunal Limits
From April 2026, a new ‘Fair Work Agency’ will be established as an enforcement body for workers’ rights. The Department for Business and Trade has confirmed that the ‘Fair Work Agency’ will have significant investigative powers and the ability to take action against employers over issues including minimum wage, holiday pay, statutory sick pay and labour exploitation and modern slavery.
The ERA 2025 also extends the time limits for individuals to bring Employment Tribunal claims from three to six months from October 2026. This change is expected to take effect from October 2026 and is widely considered a measure which will increase the number of Employment Tribunal claims brought.
Comment
The Employment Rights Act 2025 provides a significant package of reforms to UK employment law.
However, since many key changes are not due to take effect until mid-2026 to 2027 and require further regulations which set out further details of reforms, employers should use this time appropriately to plan ahead and review relevant procedures, whilst monitoring the introduction of future regulations.
Prepare Your Business for the Employment Rights Act 2025
Our specialist Employment Lawyers can help you prepare for the Employment Rights Act 2025 and the reforms taking effect from 2026 and beyond.
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Emily Arnold
Trainee Solicitor
Emily joined Myerson as a Trainee Solicitor in 2024. Emily studied Law at the University of Liverpool, graduating with a 2:1 in 2019.
About Emily Arnold