UK Employment Rights Act 2025 rollout prompts small‑business compliance push

The Employment Rights Act 2025, described as the most sweeping reform of UK employment law in a generation, received Royal Assent on 18 December 2025. The government is implementing the changes in stages throughout 2026 and 2027, with an updated timeline released on 16 July 2026 moving the new duty to prevent sexual harassment and third‑party harassment to 30 October 2026. Other provisions, such as extended tribunal time‑limits, take effect on 1 October 2026.

Small and medium‑sized enterprises face heightened compliance pressure, as failure to meet the new rules can cost UK businesses an average of £1.6 million per year. To aid firms, a compliance‑change readiness assessment and checklist have been created, covering employment law, health & safety, sector‑specific rules, data‑privacy and payroll obligations. The toolkit helps businesses evaluate gaps, prioritize actions and print a concrete action plan.