Keeping up with employment law is becoming increasingly important for employers of all sizes. New legislation can bring welcome opportunities for workplace improvement, but it can also feel overwhelming when major reforms, implementation dates, and legal obligations begin to stack up.
A clear understanding of the Employment Rights Act 2025, and the changes being introduced throughout 2026 and 2027, can help businesses navigate this evolving landscape with confidence. Knowing what the reforms mean in practice, and how they may affect contracts, policies, and day-to-day management decisions, allows employers to stay compliant and reduce the risk of costly disputes.
Sarah Everton, Solicitor in our Employment Law team at Myers & Co, breaks down the key employment law changes employers need to know, helping you understand your responsibilities and prepare your business for the years ahead.
What is the Employment Rights Act 2025?
The Employment Rights Act 2025 is one of the most wide-ranging updates to workplace rights in recent years. It affects several areas of employment law, including sick pay, family leave, unfair dismissal, harassment, trade union rights and workplace enforcement.
Although the Act is now law, not all of its provisions came into force straight away. The Government is introducing the reforms in phases, with some changes already in effect and others expected later in 2026 and into 2027. ACAS has also made clear that many changes have not happened yet, so employers need to keep checking which rules currently apply.
This staged approach is important. It means employers should avoid assuming that every headline about the Act reflects the current legal position. At the same time, waiting until each reform is fully in force may leave too little time to prepare properly.
Which Employment Rights Act changes are already in force in 2026?
Several important changes have already taken effect.
From April 2026, employees became entitled to Statutory Sick Pay from the first day of absence, with the previous waiting period removed. The lower earnings limit was also removed, meaning more employees are now eligible for Statutory Sick Pay than before.
Day-one rights have also expanded. Employees are now entitled to paternity leave and unpaid parental leave from the start of employment, rather than having to build up a qualifying period first.
For employers, these changes are not just technical updates. They may affect:
- employment contracts
- staff handbooks
- absence procedures
- family leave policies
- payroll systems
- manager training
If documents or internal processes still reflect the old rules, that could lead to confusion, inconsistent treatment and avoidable disputes.
The Act has also strengthened protections for workers who raise concerns about sexual harassment. In some circumstances, disclosures relating to sexual harassment may amount to protected disclosures, giving employees additional whistleblowing protection.
How will the unfair dismissal changes affect employers?
One of the most significant changes still to come concerns unfair dismissal.
At present, most employees need two years’ continuous service before they can bring an ordinary unfair dismissal claim. Under the planned reforms, this qualifying period is expected to be reduced, with changes due from 1 January 2027. Government guidance also indicates that the compensatory award cap for unfair dismissal is due to be removed.
Although these changes are not yet fully in force, employers should be preparing now.
Recruitment, probation and performance management will become even more important. If an employer has concerns about a new employee’s suitability, performance or conduct, those concerns should be addressed promptly and documented properly.
Relying on informal conversations or long probationary periods may become riskier. Managers will need to understand how to raise concerns fairly, how to keep written records and when to seek HR or legal advice before making dismissal decisions.
In practical terms, employers should be asking:
- Are probationary review meetings happening on time?
- Are performance concerns being recorded clearly?
- Do managers understand what a fair process looks like?
- Are dismissal decisions being made consistently?
These are sensible questions now. They are likely to become even more important as the unfair dismissal reforms come closer.
What do employers need to know about harassment and workplace culture?
Workplace harassment is another key area of reform.
Employers are already expected to take active steps to prevent sexual harassment at work. Further changes expected in October 2026 will increase those responsibilities, including a requirement for employers to take “all reasonable steps” to prevent sexual harassment. Employers will also have duties linked to harassment by third parties, such as clients, customers or contractors.
This is a good example of where the law is moving beyond simply responding to complaints after they happen. Employers will need to show that they have taken prevention seriously.
That may include reviewing policies, improving reporting routes, training managers and making sure employees know how to raise concerns safely. For businesses that deal regularly with customers, visitors, clients or suppliers, it may also mean thinking carefully about how staff are protected from inappropriate behaviour by people outside the organisation.
A policy sitting in a handbook is unlikely to be enough on its own. Employers should consider whether their approach is understood in practice and whether managers know what to do when a concern is raised.
Are trade union and employee relations rules changing?
The Act also introduces a number of changes affecting trade unions and industrial relations.
Some reforms have already taken effect, including changes to industrial action rules and protections for employees involved in lawful industrial action. ACAS has confirmed that changes introduced in February 2026 included increased dismissal protection for industrial action and changes to trade union activity rules.
Further changes are expected, including duties around informing workers of their right to join a trade union and new trade union access rights.
For many employers, this will place greater emphasis on good communication, early engagement and clear workforce planning. Businesses with unionised workforces, or those where union activity may increase, should make sure senior managers and HR teams understand the new position.
What should employers be doing now?
For employers, 2026 should be treated as a year of preparation as much as implementation.
The most useful starting point is a practical review of existing employment documentation and workplace procedures. Contracts, handbooks and policies should be checked against the changes already in force, while managers should be briefed on the reforms still to come.
Priority areas include sickness absence, family leave, probationary periods, performance management, harassment reporting procedures, whistleblowing policies and redundancy planning.
It is also worth reviewing how decisions are recorded. As employee protections expand, clear documentation will become increasingly important. A well-kept record can help show that decisions were made fairly, consistently and for legitimate business reasons.
Businesses do not need to overhaul everything at once. A staged review, starting with the areas most likely to create risk, can help employers stay in control without creating unnecessary disruption.
How can Myers & Co help employers prepare?
The Employment Rights Act 2025 is changing the way employers need to think about workplace rights, management decisions and HR compliance. Some changes are already here. Others are approaching quickly.
Taking advice early can help your business understand what applies now, what is coming next and which steps are most important for your organisation.
At Myers & Co, our employment law team works with employers on practical issues such as contracts, staff handbooks, sickness absence, family leave, disciplinary procedures, grievances, dismissals and workplace disputes. We can help you review your current arrangements and prepare for the next phase of employment law reform with confidence.
Give us a call, or make an enquiry to find out how we can help.
