The Employment Rights Act 2025 - what's to change and when

By Lauryn Okerago

The updated Employment Rights Act 2025 comes with key changes that aim to protect, benefit and better the experience of employees within the workplace. These changes have been or will be implemented within the year and years to come. The Fair Work Agency, to be established on 7 April 2026, will enforce these changes across the UK.

Trade union and industrial action:

Trade union activity:

• 18^th Feb: time needed to give notice of industrial action reduced to 10 days, instead of 14 days

• 18^th Feb: picket supervisors are no longer required

• 18^th Feb: industrial action mandates last for 12 months, instead of 6 months

• 18^th Feb: industrial action and ballot notices were simplified

• 18^th Feb: political fund rules changed – members can ‘opt-in’ to contribute and will not be forced to pay

• Oct: updated Code of Practice on trade union recognition to come into force in.

• Oct: employers must inform workers of their right to join a trade union

• Oct: updated rules on a trade union's right of access to the workplace

• Oct: right to reasonable accommodation and facilities for trade union representatives carrying out their duties

• Oct: new right to time off for union equality representatives to carry out their duties

• Oct: Workers taking part in industrial action will be protected against detriment, as well as unfair dismissal. 'Detriment' is when someone is treated less favourably by their employer.
  

Trade union ballots:

• 18^th Feb: support threshold rule has been removed – this rule applied to certain public services and required at least 40% of the total eligible votes to support action. Now in public and private sector ballots, they only need more votes in favour of industrial action than against

• August: trade union members will be able to vote electronically or in-person in ballots for industrial action, union elections and other statutory ballots – if the employer and trade union agree

• Then, the removal of the requirement for a 50% turnout for industrial action ballots.

In 2027:

• extending protection of trade union members from discrimination and being 'blacklisted'

• a new industrial relations framework, to help employers and trade unions work together

• workers will be able to vote electronically in ballots for trade union recognition and derecognition

  
  

Parental leave:

These changes will happen on 6^th April

• paternity leave as a 'day one right' -- allowing someone to give notice of leave from the first day of employment

• ordinary parental leave, or unpaid parental leave, will also become a day one right – no longer must have worked 1 year to be eligible.

• No restriction on taking paternity leave after shared parental leave

• eligible fathers and partners will be able to take up to 52 weeks of unpaid bereaved partner's paternity leave if the mother or primary adopter dies
  

Sick pay:

These changes will happen on 6^th April

• statutory sick pay will be paid from the first day of illness, instead of the fourth day

• the lower earnings limit will be removed; employees no longer must earn a minimum amount to be eligible.
  

Collective redundancy protective award:

6^th April: The maximum 'protective award' for employers’ failure to consult in collective redundancy will double from 90 days' pay to 180 days' pay.

Protections for sexual harassment:

• 6th April: Protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.

• Oct: employers will be liable for harassment from third parties, for example customers or clients, unless they have taken all reasonable steps to prevent it happening – this will apply to all types of harassment

• A change to the law around non-disclosure agreements (NDAs). This will void clauses that would prevent workers from alleging or disclosing work-related harassment or discrimination.
  

Dismissal:

These changes will happen on 1^st January

• protection from unfair dismissal will become a right after 6 months of being in a job rather than the current 2-year threshold

• the limit on the compensatory award for unfair dismissal will be removed

• Protection from unfair dismissal was expected to become a right from the first day of employment. The government changed this before the Bill became law.

• Dismissing someone then rehiring them on worse terms and conditions will become an automatically unfair dismissal in most cases. This is sometimes known as 'fire and rehire'.
  

Further changes:

• 6th April: employers must keep records of annual leave and holiday pay. 

• 6th April: Employers will need to create voluntary action plans around menopause and gender pay gaps. They will become mandatory sometime in 2027.

• Oct: Time limits for making a claim to an employment tribunal will increase from 3 months to 6 months for all claims.
  

The enforcement of these changes will hopefully improve the experience of many workers and foster the working environment that they deserve.