Skip to the main content.
Talk to an expert
Talk to an expert
Featured Offer
Ambitious 50 →
6 months of Hire and Engage free for businesses under 50 people.

Hey Compono!

A coach that actually gets you.

Get 10 minutes free, then $15 a month. Cancel anytime.

Get Started ≫
HR Glossary

Employment
Rights Act 2025

United Kingdom · United Kingdom employment
What is the Employment Rights Act 2025?

The Employment Rights Act 2025 is the UK's biggest overhaul of employment law in a generation, passed in December 2025 and rolling out in stages through 2027. It reforms sick pay, dismissal rights, zero-hours contracts and enforcement, but most of its headline changes are not yet in force.

Employment Rights Act 2025 rollout

Royal Assent18 December 2025
In force nowDay-one SSP, day-one paternity/parental leave, 180-day protective award, Fair Work Agency
October 2026Third-party harassment liability; tribunal window to 6 months
1 January 2027Unfair dismissal at 6 months; compensation cap removed; fire-and-rehire restrictions
2027Zero-hours guaranteed hours, bereavement leave, flexible work and NDA reforms

What is already in force (as at July 2026)

The changes live today: Statutory Sick Pay is payable from the first day of sickness with no lower earnings limit (from 6 April 2026), paternity leave and unpaid parental leave are day-one rights (6 April 2026), the maximum protective award for collective redundancy consultation failures doubled to 180 days' pay (6 April 2026), industrial action law was rewritten in February 2026, and the Fair Work Agency, a new single state enforcement body for employment rights, opened its doors on 7 April 2026.

What is coming, with dates

From October 2026: employer liability for third-party harassment of staff, and the employment tribunal claim window extending from three months to six. From 1 January 2027: the unfair dismissal qualifying period drops from two years to six months, the cap on unfair dismissal compensation is removed, and fire-and-rehire becomes automatically unfair in most cases. Through 2027: guaranteed-hours rights for zero-hours workers, statutory bereavement leave, tighter flexible-working refusal grounds and NDA restrictions.

The change everyone gets wrong

The Bill as introduced promised day-one unfair dismissal rights with a statutory probation period. That did not survive: the Act as passed sets a six-month qualifying period from 1 January 2027 instead, and the two-year rule still applies to dismissals today. Any summary claiming UK employees already have day-one dismissal rights, or ever will under this Act, is describing a version of the law that never commenced.

Next step

Calculator

Cost of a Bad Hire Calculator

Put a number on it. Free, no sign-up, every benchmark sourced.

Open the calculator →Related term

Unfair dismissal (UK)

Unfair dismissal in the UK is a dismissal without a fair reason or fair process under the Employment Rights Act 1996.

Read the definition →Related term

Statutory Sick Pay (SSP)

Statutory Sick Pay (SSP) is the minimum sick pay UK employers must provide, payable from the first day of sickness absence since 6 April 2026 at the lower of £123.25 a week or 80% of average weekly earnings, for up to 28 weeks.

Read the definition →Related term

Statutory redundancy pay (UK)

Statutory redundancy pay is the minimum severance UK employees with two years' service receive when made redundant, calculated from age, service and weekly pay: half a week's pay per year under 22, one week per year from 22 to 40, and one and a half weeks per year from 41, capped at 20 years and £751 per week.

Read the definition →HR Glossary

All terms

Every definition, with the local rules, rates and thresholds attached.

Browse the glossary →

Where
Compono Hire fits.

Compono Hire is an applicant tracking system (ATS) that measures fit before you make the offer, alongside the process every ATS runs.

Rights are arriving earlier in the employment lifecycle. Selection quality matters more, not less.

See how it works
Compono Hire
400+
stores on one standard process

Common questions

Does the Act give day-one unfair dismissal rights?

No. That proposal was replaced before the Act passed. The qualifying period becomes six months from 1 January 2027; until then the existing two-year period applies.

What is the Fair Work Agency?

The new single enforcement body, operating since 7 April 2026, consolidating state enforcement of minimum wage, statutory sick pay, agency standards and modern slavery into one regulator.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with gov.uk or ACAS or your own adviser. Last reviewed July 2026.