Employment Rights Act 2025: updates, key reforms and resources
Insight
Updated as of 6 January 2026
The Employment Rights Bill has received Royal Assent and now become law as the Employment Rights Act 2025.
The Employment Rights Act 2025 aims to modernise workplace rights, strengthen worker protections, and promote fair pay and flexibility. It will introduce 28 major employment reforms, including unfair dismissal protection from six months, restrictions on fire and rehire, additional obligations around zero-hours contracts, enhanced family-friendly rights, and stronger protections against harassment. This marks the most significant overhaul of UK employment law in over a generation.
However, even with Royal Assent, many of the Act's provisions will be subject to further consultation and secondary legislation. As a result, implementation will take place in phases, with key reforms being introduced in stages into 2027.
This phased approach means HR professionals and employment law practitioners will need to navigate a busy and evolving legal landscape over the coming years.
As the situation evolves, on this page we will provide regular updates on this significant piece of employment legislation, so check back from time to time.
Employment Rights Act webinar series
Our three-part webinar series will explore the key reforms coming into effect under the Employment Rights Act 2025, focusing on the changes most likely to affect organisations, how to prepare for and manage the impact.
Overview and timetable
- Employment Rights Act 2025 – what it means for employers
- Implementation roadmap: when will employment reforms come into force?
- Preparing for change with seven practical steps
- Employment Rights Act 2025: key changes at a glance
- Anticipated timeline: at a glance
Key reforms introduced by the Employment Rights Act 2025
- Unfair dismissal protection from six months: Employees will gain protection from unfair dismissal from six months' service and the cap on compensation will be removed.
- Fire and rehire: New restrictions will limit the use of dismissal and re-engagement practices to change terms.
- Preventative duty on sexual harassment: Employers will have a legal duty to take proactive steps to prevent workplace harassment.
- Third-party harassment: Protections will be reinstated to hold employers liable for harassment by third parties such as clients or contractors.
- Flexible working: Employees will have the right to request flexible working from day one, with tighter rules on employer refusals.
- Family rights: Parental, paternity and carer’s leave entitlements will expand, alongside stronger protections for pregnancy, maternity returners, and bereavement.
- Trade union reform: Rules on recognition, collective bargaining, and strike action will be modernised.
- Fair Works Agency: A new enforcement body will oversee compliance with employment rights and fair work standards.
- Zero-hours contracts: Workers will gain stronger rights to predictable hours and protection from abuse of casual contracts.
- Collective redundancies: Thresholds and consultation rules will be updated for large-scale workforce changes.
Additional Government proposals
- Government's consultation on mandatory ethnicity and disability pay gap reporting
- Government launches full review of parental leave and pay
Government consultations
This publication is a general summary of the law. It should not replace legal advice tailored to your specific circumstances.
© Farrer & Co LLP, September 2025
