Welcome to the Employment Rights Act 2025!
The Employment Rights Bill received Royal Assent on 18 December 2025 and has now therefore become the Employment Rights Act 2025.
The first provision to come into effect is the repeal of the Strikes (Minimum Service Levels) Act 2023. Please see our article here: Employment Rights Bill: October 2025 update for more details.
Consultations will continue regarding the implementation of the rest of reforms set out in the Act, including:
- new day-one rights (SSP, Parental Leave and Paternity Leave)
- Unfair Dismissal rights after six months and the removal of the cap on Unfair Dismissal awards
- protection against Fire-and-Rehire
- changes for zero-hours workers (reasonable notice of shift changes and the right to be offered guaranteed hours)
HR Solutions can advise and guide you on the wide-ranging reforms to Employment Law which will be implemented as a result of the Act coming into force. We can provide you with compliant Contracts of Employment and relevant policies, to prepare you for the new employment landscape, and can advise you on any specific issues you may have as these changes start to embed. Please contact us at [email protected]
Key measures
Provisions include the simplification of processes for union recognition, enhanced rights for collective bargaining, and the formal recognition of digital ballots and communications.
Employees will be entitled to statutory sick pay, paternity leave and parental leave from day one of employment.
A new enforcement body, the Fair Work Agency.
The Bill introduces a new category of automatically unfair dismissal for employees who refuse to accept contract changes imposed under fire-and-rehire tactics.
The penalty for failing to consult during collective redundancies is set to increase from 90 days to 180 days’ gross pay per affected employee.
The Bill proposes a ban on exploitative zero-hours contracts. Employers will be required to offer contracts with guaranteed minimum weekly hours and provide compensation for cancelled shifts at short notice. These provisions are also extended to agency workers.
Human Capital
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Explore our latest related insights
Employment Rights Bill: October 2025 update
The Employment Rights Bill returned to the House of Commons on 15 September with MPs largely rejecting the amendments to the bill proposed by the House of Lords.
Employment Rights Bill: September 2025 update
With the Employment Rights Bill main architects no longer in post, questions remain over who will take ownership of driving the legislation forward.
Employment Rights Bill: June 2025 update
The UK Employment Rights Bill is currently making its way through Parliament and is expected to receive Royal Assent by mid-2025, with implementation projected for 2026.
Upcoming Legislation Changes to Neonatal Care Leave, Reforms to Zero-Hours Contracts, Redundancy, and Sick Pay
What's happening next?
Our specialists
How MHA HR Solutions can support employers
Navigating such wide-ranging legislative reforms can be complex, particularly for organisations seeking to ensure both compliance and operational continuity. MHA HR Solutions is well-positioned to support employers through this transition in several key ways:
Policy Review and Development
We can review your current employment policies and procedures to ensure they reflect the forthcoming legal changes, and assist in drafting new documentation to align with best practice and the updated legislative framework.
Workforce Planning and Restructuring Advice
Our consultants can provide strategic guidance on managing changes to contracts, working arrangements, and redundancy processes in line with new legal obligations now and when they come in to force.
