The Employment Rights Act 2025 Is Now Law: What HR Needs to Do Next

19 Dec

The Employment Rights Bill received Royal Assent on December 18, 2025, and is now the Employment Rights Act 2025. What is key is that most changes will not take effect right away; they will be introduced in phases throughout 2026 and 2027.

We have put together a short overview of the proposed timelines and what to expect.

What the next two years look like

Now (December 2025)

One change that took effect immediately is that rules about minimum service levels during strikes have been removed. Meaning employers can no longer enforce minimum staffing during strikes.

February 2026:

Early changes will start around industrial action and trade union processes. This includes updates to notice and ballot requirements, along with stronger protections for those participating in industrial action.

April 2026:

The first major wave of “people policy” changes begins, including:

Paternity leave and unpaid parental leave will become day-one rights.
Statutory Sick Pay will be available from day one of sickness, with broader eligibility.
Stronger protections will be in place for those raising concerns about sexual harassment, along with the launch of the Fair Work Agency.

October 2026:

There is expected to be another round of employer-risk changes, including:

Stricter rules regarding fire and rehire.
Increased responsibilities for employers to prevent harassment, including third-party harassment, depending on the actions taken.
Extended employment tribunal claim time limits, moving to six months for most claims.

Into 2027:

Larger reforms are anticipated, with dates still to be confirmed, including:

Unfair dismissal protection will be reduced to six months of service.
Changes will affect zero-hours/working patterns, flexible working, and the regulation of umbrella companies.

If you’re unsure what the Employment Rights Act 2025 means for your business, you’re not alone. You don’t have to tackle it by yourself.

Castle HR can help you prepare. Our HR consultants can provide a clear, tailored action plan. This plan will cover what applies to your workforce, what needs updating first, and the key dates to focus on throughout 2026 and 2027.

Want to get started?
Get in touch today to book a call with one of our HR consultants info@castlehr.co.uk

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