The Employment Rights Act 2025 received Royal Assent on 18 December 2025, marking a major overhaul of UK employment law.
The Act introduces extensive reforms to be implemented over the coming years, representing the most substantial shift in employment rights in a generation. These changes affect everything from unfair dismissal rights and family‑related leave to enforcement, equality measures, and the use of non‑disclosure agreements.
To help employers, HR teams, and workers navigate the new landscape, we break down the headline reforms and the key dates you need to know:
- Unfair dismissal reforms, including a reduced qualifying period and the removal of the compensatory award cap.
- Changing contracts of employment, including new restrictions on the use of fire-and-rehire to amend employment terms.
- Family‑friendly rights, with major developments to paternity leave, unpaid parental leave, and bereavement leave.
- Zero-hour workers, with major reforms including a new duty to offer guaranteed hours and compensation for shift changes.
- New enforcement structures, including the creation of the Fair Work Agency.
- Equality and transparency duties, such as mandatory equality action plans for large employers.
- Increased harassment protection, including taking all reasonable steps to prevent sexual harassment and third-party harassment liability.
- Numerous protections relating to trade union activity.
“It’s time to switch gear and move from speculation to preparation. Employers and HR professionals need to understand the roadmap for change that the Government has set out and when changes will impact how they hire and manage people at work.” Peter Cheese, chief executive of the CIPD, 18 December 2025.
