UK Employment Rights Act rollout

In late June 2026, a Birketts survey found that 81 % of UK HR professionals felt only “somewhat prepared” for the Employment Rights Act 2025, with particular anxiety about the new unfair‑dismissal protection after six months of service and uncapped compensation. Employers were focusing on training frontline managers (38 % of firms) and tightening recruitment processes (30 %) as they revised probation policies ahead of the January 2027 start date.

By mid‑July 2026, the Act – which received Royal Assent in December 2025 – entered its implementation phase. The legislation introduces day‑one statutory sick pay, day‑one paternity leave, and reduces the qualifying period for automatic unfair‑dismissal protection to six months from 1 January 2027, while also amending rules on sexual harassment, zero‑hours contracts and trade‑union rights. Implementation dates were tweaked, moving certain harassment provisions to 30 October 2026. An Acas‑commissioned YouGov poll showed employers now deem paying statutory sick pay from day one (30 %) and day‑one paternity leave (27 %) as their biggest challenges, prompting Acas to issue updated guidance on probation periods and compliance.

A follow‑up Acas survey on 20 July 2026 confirmed those concerns and added that 23 % of employers were worried about the shortened unfair‑dismissal qualifying period. Acas further refined its guidance to address these issues.

On 28 July 2026 the government released a compliance‑readiness toolkit for small and medium‑sized enterprises, warning that breaches could cost an average of £1.6 million per year. The checklist covers employment law, health & safety, data‑privacy and payroll, helping firms identify gaps and plan remedial actions as the rollout proceeds through 2026‑2027.