UK Employment Rights Act 2025 implementation

The Employment Rights Act 2025, which became law in December 2025, introduces comprehensive reforms to United Kingdom labor regulations. The legislation modifies existing laws, such as the Employment Rights Act 1996, with implementation phased throughout 2026 and 2027.

Key reforms target worker protections and employer obligations. The Act addresses ‘fire and rehire’ practices by classifying certain ‘restricted variations’—including changes to pay, pensions, or working hours—as grounds for ‘automatically unfair dismissal’. Additionally, the qualifying period for unfair dismissal protection is scheduled to decrease from two years to six months starting January 1, 2027, and the cap on compensatory awards for such dismissals will be removed.

Other significant changes include enhanced protections against sexual harassment, requiring employers to take all reasonable steps to prevent it. The Act also expands trade union rights, granting unions the ability to request access to workplaces to engage with employees and requiring employers to inform workers of their right to join a union during onboarding.