If you feel like you have no idea what’s what in employment law at the minute, you’re right to. The Employment Rights Act 2025 is the biggest shake-up of workers’ rights in a generation, and it isn’t arriving all at once. The government is implementing the changes in stages across 2026 and 2027.
Some changes are already in place, more land this month, and the big one for small businesses arrives in January.
Here’s a plain-English rundown of what’s changing, when, and what you actually need to do about it.
Already in force: April 2026
If you haven’t caught up with these yet, Get these sorted:
- Sick pay from day one. The waiting period and the Lower Earnings Limit for Statutory Sick Pay have been removed, so SSP is now paid from the first day of absence, including to lower earners.
- Day-one family rights. Paternity Leave and Unpaid Parental Leave are available from the first day of employment.
- Bigger penalties for redundancy mistakes. The maximum protective award for failure to consult in collective redundancy has increased from 90 days’ pay to 180 days’ pay.
- Whistleblowing. Protections for workers who ‘blow the whistle’ on sexual harassment have been strengthened.
- A new enforcer. The Fair Work Agency launched in April. It’s a new enforcement body that brings all state enforcement of workers’ rights under one agency, with new powers, penalties, and an extended remit to include SSP and holiday rights enforcement.
What to do: check that your payroll pays SSP correctly, and that your family leave and sickness absence policies reflect the new rules.
Happening now: October 2026
From today (1 October): tribunal time limits are extended. For most claims, employees now have six months to bring a claim rather than three. In practice, a disgruntled ex-employee has twice as long to decide to take you to tribunal, so keeping good records matters more than ever.
From 30 October, the following come in:
- the duty to take all reasonable steps to prevent sexual harassment;
- employer liability for harassment of staff by third parties;
- the duty to inform workers of their right to join a trade union;
- the union right of access to workplaces.
The harassment changes are the ones most small businesses need to act on. Third parties mean customers, clients, suppliers and contractors. If a customer harasses a team member and you haven’t taken reasonable steps to prevent it, you could be liable.
What to do:
- Update your anti-harassment policy so it covers third parties.
- Carry out a simple risk assessment: where could your staff be exposed to harassment?
- Train your managers so they know how to spot and handle complaints.
- Add a line about the right to join a trade union to your new starter paperwork.
End of 2026: tipping
Reform of tipping law, previously expected in October 2026, has slipped to the end of 2026. If you’re in hospitality, keep an eye on this one.
January 2027: the big one for small businesses
This change will catch most businesses out. Unfair dismissal protection currently kicks in after two years’ service. From January 2027, that drops to six months.
Crucially, it isn’t just for new starters. Any employees with 6 months’ employment on 1st January 2027 will have unfair dismissal protection. Anyone you’ve taken on since 1 July 2026 will be covered.
Alongside this, the removal of the compensatory award cap and the fire and rehire protections are still expected to come into force in January 2027. So the potential cost of getting a dismissal wrong is going up as well.
What to do:
- Make sure every employee has an up-to-date (and relevant) contract, and that you have a disciplinary policy you actually follow to the letter.
- Use probation periods properly. Set clear expectations, hold reviews, and make decisions before the six-month mark. Make sure these are recorded correctly.
- Deal with performance and conduct issues early and in writing. “We’ll sort it later” or “we had a quiet word” won’t work anymore.
- Check any contract variation clauses before the fire and rehire rules land.
During 2027: more to come
Several more changes are expected during 2027, with exact dates still to be confirmed:
- Zero-hours contracts. New rights will be introduced for zero-hours and low-hours workers, including guaranteed hours after a reference period, reasonable notice of shifts, and compensation for cancelled, moved, or curtailed shifts.
- Flexible working. An amendment to flexible working law in 2027 will tighten the rules on employer refusals, placing greater responsibility on employers to justify their decisions.
- Bereavement leave. A new right to statutory bereavement leave will extend to leave for non-parents and early pregnancy loss.
- Pregnancy and maternity. The Act will strengthen protections against dismissal for pregnant workers and those returning from maternity leave.
What to do: if you use zero-hours or casual staff, start looking at your rota patterns now. Then review your flexible working process so that any refusal is properly reasoned and recorded.
Your quick-start checklist
If you only do five things this year, make it these:
- Contracts. Check every employee has a written contract that’s fit for 2027.
- Policies. Update your harassment, sickness, family leave and disciplinary policies.
- Probation. Put a proper probation process in place with reviews before six months.
- Managers. Train them to handle conduct, performance and complaints properly. Most tribunal claims start with a manager who meant well but didn’t follow a process.
- Records. Write things down. With longer time limits and lower qualifying periods, your paperwork is your protection.
One word of caution: future dates remain subject to parliamentary processes and may change as consultations and secondary legislation progress, so it’s worth keeping an eye on updates.
Need a hand?
None of this needs to be overwhelming, but it does need doing. At ECL People Solutions, we help small and growing businesses get their contracts, policies and processes sorted, in plain English and without the jargon. If you’re not sure where you stand, get in touch for a no-obligation chat.
ECL People Solutions – HR for the real world.
