The Employment Rights Act finally gained royal assent as of 18th December, confirming a number of changes for employers.
The Bill was debated in parliament throughout most of 2025, with various elements being subject to discussion and disagreement.
As previously discussed, the Act will be phased in over the next 2-year period, with some changes taking effect immediately, and others scheduled for future dates.
Introduced December 2025
Paternity Leave (Bereavement) Act 2024 (in force from 29 December 2025)
Eligible employees can now take statutory paternity leave without the need for 26 weeks’ service, in situations where the mother or adopted mother of a child dies in childbirth, or within a year of the birth or adoption.
ACAS Early Conciliation
From 1st December 2025, the window to enter into early conciliation with ACAS doubled from 6 to 12 weeks. This is the period during which an employee liaise with ACAS about a potential claim. ACAS then tries to help both sides to reach an agreement.
April 2026
Day one rights to paternity and parental leave
Currently workers only become eligible for paternity leave after 26 weeks of employment, and need a years’ service before becoming eligible for parental leave. Workers will now be entitled to paternity, and parental leave, from day one of employment. However, the parental leave remains unpaid, and eligibility requirements for paternity pay still exist.
Statutory Sick Pay Reform
The Lower Earnings Limit (£125 per week) will be removed, meaning all employees will be entitled to SSP regardless of their earnings. The rate of SSP will be set at £118.65 per week, or 80% of weekly salary (whichever is lower)
The 3-day unpaid waiting period will also be removed, meaning workers will receive SSP from the first day of illness.
It will be essential for organisations to have absence management processes in place, for example completing return to work interviews, considering wellbeing initiatives, and ensuring self-certificates and doctor’s notes are provided.
Fair Work Agency Established
The Fair Work Agency (FWA) will have powers to enforce workers rights, and is planned to be effective from April 2026.
The FWA will be able to take employers to tribunal on worker’s behalf, if they choose not to take action themselves. Any compensation would be made to the worker. They will also have the power to enforce employees’ rights to holiday pay.
National Minimum Wage Increases
NMW for 18–20-year-olds will increase to £10.85 per hour.
The 16–17-year-old, and apprenticeship rate will increase to £8 per hour.
Over 21 rate will increase to £12.71 per hour
Other rates including SSP, maternity, paternity and adoption will also increase.
Increased Collective Redundancy Protective Award
The maximum protective award for employees will double, increasing from 90 days’ pay to 180 for employers that fail to consult before carrying out collective redundancy (20 or more employees within a 90-day period).
Whistleblowing Protections and bank on NDAs
Sexual harassment will become a “qualifying disclosure” under whistleblowing law, offering protection from detriment and unfair dismissal to those who report it.
Prohibition of non-disclosure agreements that restrict employees from speaking up about harassment or discrimination is also likely to take effect in April 2026.
Trade Unions Rights
Various changes will be made to trade unions rights, including simplifying the information given to employees in ballot notices and voting papers, removing ballot turnout thresholds, reducing the notice required for industrial action (to 10 days from 14), increasing the period of effectiveness of a mandate to support induction action to 12 months, and the introduction of electronic balloting systems.
October 2026
Tribunal Time Limits Extended
The time employees will have to bring a tribunal claim will rise to 6 months (from its current 3-month period).
Fire and Rehire Ban
It will become automatically unfair to dismiss an employee for refusing to agree to a “restricted variation” of their employment contract, or to enable the employer to hire another person under a varied contract of employment, where one is these is a restricted variation.
Restricted variations relate to changes to pay, working hours, or annual leave, or a change in shift pattern.
Sexual Harassment
Employers will have a duty to take “all reasonable steps” to prevent sexual harassment – an increase from the “reasonable steps” requirement that is currently in place (since last year). The protection will also extend do third parties.
Trade Union Changes
Employers will be required to give workers a written statement informing them they have the right to join a trade union. Increased entitlement will also be introduced allowing the use of office facilities to support union work, and paid time off for union duties.
Unions will be able to request access to workplaces to meet, support, represent, recruit, or organise workers or facilitate collective bargaining.
Tipping Laws
Employers will be required to consult with workers or representatives before creating a tipping policy, and update it every three years. All staff will have to be provided with an anonymised summary of feedback received during the consultation process.
2027 onwards
2 Year Dismissal Periods
The other change which is imminent is the removal of the 2-year unfair dismissal period.
The has been confirmed to become a 6-month period, and it is likely that this will become effective from January 2027 (therefore affecting staff employed from July 2026).
The specific requirements and criteria have not yet been introduced; however, it will be essential that businesses follow a clear, documented probationary process, providing feedback and carrying out regular review. In situations where dismissal then occurs, this evidence will be essential to justify fair process and decision making.
Other Changes
Other changes are expected regarding aspects including menopause reporting, and further measures to enhance workers rights.
If you are not already on our mailing list, and would like to be updated on further changes as they occur, please email team@hrprime.co.uk to be added to the list.
Further Support
We will be holding a webinar (details below). Please do join us to receive further updates and ask any questions you may have relating to the upcoming changes.
Webinar
Thursday 29th January 2026, from 10-11am on Zoom
Topic: Employment Rights Bill Webinar
Time: Jan 29, 2026 10:00 AM London
Join Zoom Meeting
https://us06web.zoom.us/j/84707744251?pwd=xIZunPFWqRlm9Urfmbje8mRArknUqp.1
Meeting ID: 847 0774 4251
Passcode: 600912
Health Check / Ongoing Support
If you have any other questions at all, or would like to receive a free HR Health Check (Audit), please contact us on team@hrprime.co.uk and we can arrange a time to conduct either in person or
