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The Employment Rights Bill officially received Royal Assent on 18th December 2025, marking a major turning point in UK employment legislation. The Bill now becomes the Employment Rights Act 2025, concluding a long period of debate and signalling the start of wide-ranging changes affecting employers nationwide. Reforms will be rolled out in a series of phased implementations, giving employers time to adapt to the new framework.

Phase 1 – After Royal Assent (December 2025)

Following Royal Assent, the removal of minimum service level rules for strikes took immediate effect.  

From February 2026, there are then changes to trade union activity and also dismissal for taking part in industrial action will become automatically unfair.

This phase marks the start of a transition period in which businesses should begin assessing their internal policies, contracts and HR processes in preparation for the more significant changes ahead.

Phase 2 – April 2026

April introduces the first wave of substantive employment rights changes, including:

• Day one rights to paternity leave and unpaid parental leave
• Removal of the waiting period and Lower Earnings Limit (LEL) for Statutory Sick Pay SSP
• Reforms to union recognition processes and provision for electronic balloting

This phase expands the baseline rights available to workers and requires businesses to update onboarding, record keeping, sick pay frameworks and HR policies.

Phase 3 – October 2026

The next major tranche of reforms is expected in October 2026, including:

• Strengthened employer duty to prevent sexual harassment
• New restrictions on 'fire and re-hire' practices

These changes increase organisations’ compliance obligations and place greater emphasis on proactive workplace culture, risk prevention and fair workforce restructuring processes.

Phase 4 – 2027

The final phase delivers some of the most consequential reforms:

• Unfair dismissal qualifying period reduced from two years to six months
• New right to statutory bereavement leave
• Further reforms affecting zero-hours and low-hours contracts

This phase will require employers to focus heavily on early stage management, probation procedures and consistent documentation practices.

What this all means for UK businesses?

Across all phases, the Employment Rights Act signals a major shift in the UK employment landscape. Businesses should:

• Begin proactive review of policies, employment contracts and HR processes
• Train managers on new early stage employee rights and industrial relations changes
• Prepare for increased tribunal exposure and higher compliance expectations
• Strengthen workplace culture, equality measures and dismissal-related documentation

The Government has also reiterated its intention to crack down on non-compliance, supported by the creation of the Fair Work Agency, amplifying the need for early preparation.

How can we help?

Navigating these reforms doesn’t have to be overwhelming. Our focused 2-hour online course gives your business the insight and tools needed to understand the changes, evaluate your exposure and prepare confidently for each phase of implementation.

Book your place now and ensure your organisation can adapt smoothly and compliantly as the new employment landscape takes shape.