By Charlotte Beedles, Accelerated Growth Programme Gold Partner
The Employment Rights Act 2025 became law on 18 December, introducing significant changes to UK employment law. These reforms strengthen workplace protections and promote fairer practices across businesses of all sizes. For growing companies, understanding and preparing for these changes is essential.
Key changes you need to know
The reforms introduce several important protections:
- Statutory sick pay as a day-one right for all workers.
- Tribunal time limits extended from three to six months.
- The duty to prevent sexual harassment strengthened from “reasonable steps” to “all reasonable steps”.
- Re-introduction of the duty to prevent harassment of employees by third parties.
- Employees gaining unfair dismissal rights after six months’ service.
Changes will roll out in phases from April 2026, with final implementation expected in 2027.
What does this mean for your business?
While many provisions require secondary legislation before taking effect, now is the time to prepare. Staying informed and ready to respond will put you ahead of the curve.
Taking action now reduces risk and stress later. While it might be tempting to wait for final implementation, early preparation protects your business and streamlines the transition. Businesses that review and update policies now will protect themselves from future claims and ensure smoother implementation.
Pay close attention to unfair dismissal rights, which will apply after six months' service from 1 January 2027. Updated procedures must be in place by July 2026, as staff hired from this date will gain unfair dismissal rights on 1 January 2027 as they approach the end of their probationary periods.
This means that the traditional “probationary dismissal” processes currently used by many employers will no longer be appropriate. Implementing these updated processes earlier poses no risk as any employees recruited from now onwards, or those still within their initial two-year period as of 1 January 2027, will also be covered by the new protections.
How to prepare your business
Here's how you can get ready:
- Review and update contracts and policies to reflect the new requirements
- Train managers and staff on the changes and what they mean in practice
- Promote open communication so issues are reported early and escalation risks reduced
- Keep clear records of policy updates, consultations, and key decisions
- Seek expert advice when you need clarity or support
Looking ahead
Preparing for these changes puts you in control. Beyond compliance, these reforms offer a genuine opportunity to strengthen your workplace culture, boost engagement and create a safer, more supportive environment for your team.