Employment Rights Act 2025: What HR professionals and employers need to do now

The Employment Rights Act 2025 represents one of the most significant reforms to UK employment law in a generation. While many of the changes will be implemented in phases between 2026 and 2027, employers should already be reviewing policies, contracts, and management practices to ensure compliance and reduce future risk.

For HR professionals, the Act presents both challenges and opportunities. Organisations that prepare early will be better positioned to manage employee relations, attract talent, and avoid costly employment disputes.

Key changes employers need to know

1. Expanded day-one employment rights

One of the most notable developments is the extension of several employment rights from the first day of employment. From April 2026, employees gain immediate entitlement to paternity leave and unpaid parental leave, removing previous qualifying periods. Statutory Sick Pay (SSP) also becomes available from day one of sickness absence.

For employers, this means onboarding processes, employee handbooks, and leave policies must be updated to reflect these enhanced rights.

2. Statutory Sick Pay reform

The reforms significantly widen access to SSP. The lower earnings threshold is removed, and employees no longer need to wait until the fourth day of sickness before becoming eligible. This change is expected to extend SSP coverage to millions of workers who were previously excluded.

HR teams should review absence management procedures and ensure managers understand the new entitlement framework.

3. Changes to unfair dismissal protection

Although the original proposal for day-one unfair dismissal protection did not become law, the qualifying period is expected to reduce from two years to six months from January 2027. This is still a substantial shift that will increase legal exposure for employers during the early stages of employment.

Employers should strengthen recruitment processes, probationary reviews, and performance management procedures to ensure decisions are well documented and legally defensible.

4. Greater protection for workers on variable hours

The legislation aims to tackle insecure work by introducing rights for workers on zero-hours and low-hours contracts. Planned measures include rights to contracts that better reflect actual working patterns, reasonable notice of shifts, and compensation for late cancellations. Agency workers are also expected to benefit from similar protections.

Businesses operating in retail, hospitality, healthcare, and logistics should begin assessing workforce models and scheduling practices now.

5. Enhanced workplace protection and enforcement

The Act strengthens worker protections through new enforcement mechanisms, including the establishment of a Fair Work Agency. The agency will have powers to enforce employment rights and improve compliance across workplaces. Additional protections relating to harassment and whistleblowing are also being introduced.

This reinforces the importance of robust policies, management training, and a positive workplace culture.

What should employers do now?

The phased implementation timetable provides organisations with an opportunity to prepare strategically rather than reactively.

HR leaders should consider the following priorities:

1. Review employment contracts and policies.

2. Audit absence management procedures.

3. Strengthen probation and performance management processes.

4. Assess the use of zero-hours and casual worker arrangements.

5. Update family leave policies.

6. Deliver manager training on the upcoming changes.

7. Conduct a compliance review to identify potential risks before implementation dates arrive.

The strategic HR opportunity

While compliance will naturally be a focus, the Employment Rights Act 2025 is about more than legal obligations. It reflects a broader shift towards greater job security, employee wellbeing, and workplace fairness.

Forward-thinking employers can use these reforms as an opportunity to enhance employee experience, strengthen employer branding, and build more resilient workplace cultures. Organisations that embrace the spirit of the legislation—not simply its minimum requirements—are likely to see benefits in recruitment, retention, and engagement.

For HR professionals, the message is clear: preparation starts now. The employers that begin reviewing their people practices today will be best placed to navigate the most significant employment law reforms of the decade.