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Employment Rights Act: Timetable and impact on Businesses

Posted on July 9, 2025

UK employment law is set to undergo significant changes over the next two years, with a series of reforms aimed at enhancing workers’ rights and protections as detailed in our previous blog here. These changes will impact various aspects of employment, from sick pay and parental leave to protections against unfair dismissal and sexual harassment. In this blog, we will outline the expected timeline, which was announced in July,  for these changes and explore their implications for both employers and employees.

This blog only looks at those changes that are likely to impact SME’s, hence the legal changes impacting Trade Union participation and rights aren’t covered as they are unlikely to impact small employers.

Summary

The table below sets out the proposed changes and the indicative timeline for when the employment law will change:

As you can see all changes will be phased in over what will be a 2-year period.  Some of the most impactful changes, such as the those to zero-hour contracts have been put back to 2027.  It is anticipated that the exact timeline for the 2027 changes will become known during 2026.

Implications for Employers and Employees

For Employers

These upcoming changes will require employers to review and update their policies and practices to ensure compliance with the new legal requirements. Employers will need to:

• Revise Sick Pay Policies: Update sick pay policies to reflect the new SSP entitlements from day one and ensure that all employees are informed of their rights.
• Update Parental Leave Policies: Ensure that paternity and unpaid parental leave policies are aligned with the new day-one rights, and communicate these changes to employees.
• Prepare for Tribunal Claims: Be aware of the extended time limits for tribunal claims and ensure that HR teams are prepared to handle potential disputes.
• Collective consultation during redundancy: Be aware that you will need to consider the financial consequences if you don’t undertake consultation during redundancy correctly.
• Prevent Harassment: Implement comprehensive measures to prevent sexual harassment, including training programs and clear reporting procedures.
• Revise Employment Contracts: Update contracts to reflect the new statutory probationary period and guaranteed hours for zero-hours and low-hours workers.
• Implement Flexible Working Policies: Prepare to accommodate flexible working requests from day one of employment.
• Develop Action Plans: Create and publish action plans addressing gender pay gaps and menopause if over 250 employees.
• Enhance Protections for New Mothers: Ensure policies are in place to protect pregnant women and new mothers from unfair dismissal.
• Provide Bereavement Leave: Establish procedures to offer bereavement leave to employees, including those who experience a miscarriage.

For Employees

The upcoming reforms will enhance employees’ rights and protections, providing greater security and support in the workplace. Employees can expect:

• Immediate Access to Sick Pay: Financial support from day one of sickness, reducing the stress of illness-related absences.
• Greater Parental Leave Flexibility: The ability to take paternity and unpaid parental leave from the start of employment, supporting family responsibilities.
• Stronger Protections Against Unfair Dismissal: Increased job security with restrictions on fire and rehire practices.
• Improved Workplace Safety: Enhanced protections against sexual harassment, fostering a safer and more inclusive work environment.
• Immediate Protection: From unfair dismissal, enhancing job security from the start of employment.
• Guaranteed Hours: For those on zero-hours or low-hours contracts, providing more predictable income.
• Flexible Working Options: Available from day one, supporting better work-life balance.
• Supportive Work Environment: With action plans addressing gender pay gaps and menopause.
• Enhanced Protections: For pregnant women and new mothers, ensuring fair treatment.
• Bereavement Leave: Providing time to grieve and recover from loss.

Fair Work Agency – what is it?

Most employment rights are currently enforced by individuals presenting a complaint to an Employment Tribunal. A more limited number of employment rights are enforced by the state on workers’ behalf – such as the national minimum wage or protections for agency workers. The current system of state enforcement is fragmented and inefficient. This complicates the process for both workers and employers seeking help and means many workers are unable to enforce their rights, resulting in certain breaches, like underpayments, going unchallenged.

The FWA will aim to resolve issues upstream by supporting employers that want to comply with the law. But it will also have strong powers to investigate and take action against businesses that flout the law, to level the playing field for compliant businesses.

Conclusion

The next two years will bring significant changes to UK employment law, with reforms designed to strengthen workers’ rights and protections. Employers and employees will be impacted, and you start to consider now how these might impact your business.  If  you require further detail on the changes, please refer to our blog here.

If you need further help please don’t hesitate to contact us:

 +44 (0) 2382 518 004
info@smehrconsultancy.com
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