Employment Rights Act 2025: What UK Workers and Employers Should Prepare For

The Employment Rights Act 2025 received Royal Assent in December 2025 and is widely seen as the most significant transformation of UK employment law in a generation. The Act introduces major reforms that will reshape how businesses and employees interact, with changes rolling out across 2026 and beyond.

At Arlingsworth Solicitors, we help both employers and employees stay informed and protected when the law changes. This guide outlines the key aspects of the new Act and what you should do to stay ahead.

A New Era for Workplace Law

The Employment Rights Act 2025 brings in sweeping changes to protect workers’ rights and modernise employment relationships. It covers everything from dismissal rules and flexible working to trade union access and protections against harassment. Some changes take effect as early as February 2026, with others coming into force later in the year.

What’s Changing and When

Unfair Dismissal Rules

Employees will now gain the right to claim unfair dismissal after just six months of employment, compared to the previous two-year requirement. The compensation cap for unfair dismissal claims will also be removed, meaning successful claimants may receive higher awards. Employers should review their dismissal procedures and training to avoid potential claims.

Guaranteed Hours and Contract Stability

Employers who regularly rely on casual or zero-hours workers will be expected to provide more predictable working hours. Workers who demonstrate regular patterns of work will have the right to request guaranteed hours, creating more stability and fairness in scheduling.

Sick Pay and Family Leave

Employees will now qualify for statutory sick pay from the first day of illness. Additional reforms will strengthen parental leave rights and introduce new categories of leave, such as for bereavement or unpaid carers. Employers must ensure their policies are updated and accessible to staff.

Trade Union Rights and Industrial Action

For unionised workplaces, new rules will make it easier to organise and participate in industrial action. Union access to workplaces will be improved, and employees who take part in lawful action will receive enhanced protections from dismissal or penalty.

Harassment Prevention Duties

Employers will have a new duty to take reasonable steps to prevent workplace harassment. This includes proactively training staff, implementing clear reporting processes, and responding quickly to complaints. The changes are designed to create safer, more respectful workplaces for everyone.

Flexible Working Enhancements

The Act builds on existing flexible working rights. Employees will be able to make flexible working requests from day one of employment, and employers will be required to properly consider and justify any refusals.

What Employers Should Do Now

Businesses should begin preparing for these changes by:

  • Updating contracts and HR policies
  • Auditing sick pay and family leave procedures
  • Reviewing how flexible working requests are handled
  • Assessing zero-hours or variable hours practices
  • Ensuring anti-harassment policies are active and effective
  • Training managers on their new responsibilities under the Act

Taking proactive steps now can reduce legal risk and improve employee satisfaction as the new rules come into force.

What It Means for Employees

For workers across the UK, the Employment Rights Act 2025 brings enhanced protections, earlier access to key rights, and a stronger voice in the workplace. It aims to reduce job insecurity, improve work-life balance, and ensure fair treatment across all sectors.

Employees should understand what new rights they are entitled to and how to raise concerns if those rights are not being respected.

How Arlingsworth Can Help

Our employment law specialists are ready to support both individuals and businesses through this transition. Whether you need help rewriting contracts, preparing for tribunal claims, or updating your workplace policies, we provide clear and reliable legal guidance.

If you are unsure how these changes affect you or your business, speak to our team today.

📞 Call Arlingsworth Solicitors on 01273 696962
📩 Email info@arlingsworth.com
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