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The Employment Rights Act 2025 - big changes coming
The Act is now law after a lot of to-ing and fro-ing, it will introduce many changes in employment, but the full details are yet to be clear as there are a range of consultations on lots of regulations that the government will be making in 2026 and 2027 to bring the Act into force, and we will be keeping you informed of what you need to know in good time, but be prepared for changes in many areas, including:
Unfair dismissal: – a shorter qualifying period of 6 months AND no limit to compensation for loss of earnings – likely to come into law in 2027.
Statutory Sick Pay: From 6th April 2026, SSP will be payable from the first day of sickness, no more 'waiting days' and the lower earnings limit will be removed.
Right to Guaranteed Hours: Workers will have the right to fixed hours meaning that 'casual' labour is likely to be rare, along with payment for shifts cancelled at short notice and reasonable notice of shifts.
Ban on 'Fire and Re-hire': Employers won't be able to dismiss staff and re-hire them (or replacements) to introduce new terms and conditions (e.g. lower pay, different hours, restrictive covenants) unless it is business critical to do so and the employer can show that all the conditions are met.
Duty to keep records of holiday for 6 years: – Employers will have to keep 'adequate' records to show that they have provided workers with statutory annual leave for 6 years, and it will be an offence not to do so.
Paternity and Unpaid Parental Leave will be available from the first day of employment. A new right to unpaid bereavement leave will be introduced.
A stronger duty to prevent sexual harassment, requiring employers to take 'all reasonable steps' to prevent sexual harassment and making certain that complaints about sexual harassment will be treated as whistleblowing, and to require employers to prevent harassment by third parties.
A duty on employers rejecting flexible working requests to only refuse a request where it is reasonable to do so and to provide their reasoning for doing so.
CONTACT US
If you are an employer, or employee who needs guidance, we are here to help. Please do not hesitate to contact our Employment Law Team on 01522 814638, or make an enquiry here.