Everything your organisation needs to prepare for the ERA 2025.

The reforms are being implemented in stages rather than through a single commencement date.

Some measures have already taken effect, while others are expected to be introduced during October 2026 and January 2027 and beyond. This phased approach gives employers time to prepare, but it also increases the risk of organisations overlooking important changes as they are introduced.

Rather than viewing implementation as a future compliance exercise, employers should be using this period to review their existing employment practices and identify where changes may be required.

The Employment Rights Act introduces a number of reforms that are likely to have a direct impact on how employers manage their workforce, including:

• Earlier access to unfair dismissal protection.
• Uncapped compensation for unfair dismissal claims.
• Longer periods for employees to bring claims in the Employment Tribunal
• Day-one eligibility for Statutory Sick Pay.
• Day-one rights to paternity leave and unpaid parental leave.
• Additional protections for workers on zero-hours and low-hours contracts.
• Significant restrictions on fire-and-rehire practices.
• Enhanced obligations to prevent sexual harassment in the workplace.
• Extended time limits for bringing employment tribunal claims.
• The introduction of the Fair Work Agency and increased enforcement powers.
• Changes to collective redundancy consultation in respect of the employee threshold and the amount of a possible award for getting it wrong.

The extent of the impact will vary between organisations. However, most employers will need to review people management processes, employment documentation and workplace training to ensure they remain compliant.

For many employers, the changes to unfair dismissal protection are likely to be among the most significant reforms within the Act.

As employees gain statutory protection much earlier in their employment, organisations will have less time to identify and address concerns relating to performance, capability, conduct or cultural fit. This places greater emphasis on robust recruitment processes, effective onboarding and proactive probation management.

Yes, but only where they are managed effectively.

Probationary periods will remain a valuable tool for assessing suitability and performance, but employers may have less time to make informed decisions before unfair dismissal rights arise. Objectives should be clear, review meetings should happen at appropriate intervals, and concerns should be addressed promptly rather than left until the end of probation.

The Act introduces significant changes to Statutory Sick Pay (SSP). Eligible employees will be entitled to SSP from the first day of sickness absence rather than after a waiting period, and eligibility is also being extended to lower-paid workers who may not previously have qualified.

Employers should review absence management procedures, payroll processes and sickness policies accordingly.

The Employment Rights Act does not prohibit the use of zero-hours contracts. However, workers who regularly work predictable hours are expected to gain additional rights, including the opportunity to move to contracts that more accurately reflect their working patterns, along with greater protections around short-notice shift cancellation.

Not entirely, but the circumstances in which employers can rely on dismissal and re-engagement are becoming significantly more limited. Employers will need to demonstrate clear business justification and explore alternative options before pursuing this route, meaning workforce change projects may become more complex and require longer lead-in times.

The Fair Work Agency is a new enforcement body designed to strengthen compliance with workplace rights, reflecting a shift away from a system that relies primarily on individuals bringing claims, towards more proactive enforcement. Employment law compliance is increasingly becoming a governance issue rather than simply a litigation risk.

While many reforms are not yet in force, employers should avoid a wait-and-see approach: review contracts and handbooks, audit probation and performance management, train managers, and assess zero-hours arrangements, absence policies and anti-harassment measures. See the checklist below for the full list.