Employment Rights Act 2025
Employer Briefing for Clients
Prepared by Vantage Recruitment | March 2026
Executive Summary
The Employment Rights Act 2025 represents one of the most significant changes to UK employment law in more than a decade.
More than thirty legislative changes will be introduced between 2026 and 2027, strengthening employee protections and increasing enforcement.
For employers this is not simply a compliance issue. These changes will influence how organisations recruit, assess,
onboard and manage employees. Shorter qualifying periods, expanded day one rights and stronger enforcement will increase
the operational risk associated with poor hiring decisions.
Employers who invest in strong recruitment processes, structured onboarding and good documentation will be far better
positioned to manage the impact of these changes.
Key Legislative Timeline
| Timeline | Key Changes |
| Feb 2026 | Trade union rights reforms including balloting rules and check‑off arrangements |
| Apr 2026 | National Living Wage increase |
| Apr 2026 | Day one rights for SSP, Paternity Leave and Unpaid Parental Leave |
| Apr 2026 | Launch of the Fair Work Agency |
| Oct 2026 | Duty to prevent sexual harassment and expanded whistleblowing protection |
| Oct 2026 | Restrictions on fire and rehire practices |
| Oct 2026 | Tribunal claim window increases from 3 months to 6 months |
| Jan 2027 | Unfair dismissal qualifying period reduces from 2 years to 6 months |
Impact on Employers
Why this matters for employers
Across all sectors these reforms increase the cost and risk of poor hiring decisions.
Key factors include:
• Shorter unfair dismissal qualifying periods
• Increased day one employment rights
• Higher Statutory Sick Pay exposure
• Stronger enforcement through the Fair Work Agency
• Longer tribunal claim windows
• Reduced flexibility when restructuring employment terms
Why Hiring Well Matters
Why hiring well becomes more important
Strong recruitment processes help organisations:
• Reduce early employee turnover
• Improve reliability and attendance
• Set clear expectations from the outset
• Strengthen onboarding and early performance
• Minimise disputes and misunderstandings
Actions Employers Should Take Now
Practical steps employers should take now
• Review policies covering sick pay, family leave, redundancy and dismissal
• Ensure policies remain non‑contractual so they can be updated easily
• Train managers on new employment rights and responsibilities
• Strengthen record keeping for pay, hours and entitlements
• Review recruitment processes to ensure suitability is assessed properly
• Improve onboarding to support employees from day one
• Audit payroll and holiday pay records before the Fair Work Agency launches
Final Commentary
The Employment Rights Act 2025 marks a significant shift in the UK employment landscape.
Organisations that prepare early will be best positioned to remain compliant, reduce risk
and build stronger teams. Strengthening hiring processes and onboarding practices will be
a key part of that preparation.