UK implements major Employment Rights Act 2025 reforms

The Employment Rights Act 2025 received Royal Assent in December 2025 and is being rolled out across 2026‑2027. The legislation introduces day‑one statutory sick pay and day‑one paternity leave, and reduces the qualifying period for automatic unfair‑dismissal protection from two years to six months, effective 1 January 2027, while removing the cap on compensation.

Implementation dates were adjusted in July 2026: the duty to take reasonable steps to prevent sexual harassment and the new third‑party harassment provisions were moved to 30 October 2026, with tribunal time‑limit extensions still taking effect on 1 October 2026. The reforms also affect industrial action, trade‑union rights, flexible working, redundancy consultation and zero‑hours contracts.

Acas commissioned a YouGov survey of employers, finding that 30 % consider paying statutory sick pay from day one the hardest change, 27 % cite day‑one paternity leave, and 23 % are concerned about the shortened unfair‑dismissal qualifying period. Based on the findings, Acas has updated its guidance on probation periods and other compliance issues to help employers adapt to the new rules.