Employment rights act 2025, what employers should be doing now, Blake Turner LLP
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Summary

The employment rights act 2025 marks the most significant reform to UK employment law in a generation. Now in its phased implementation, the legislation introduces expanded worker protections, new enforcement mechanisms, and material changes to how employers must manage their workforce on a day‑to‑day basis.

For employers, 2026 is not a year for passive awareness. Many of the reforms are already in force, with further obligations coming into effect throughout the year and into 2027. Businesses that fail to act now may face increased litigation risk, regulatory scrutiny, and financial exposure.

In this article, we outline the key changes employers need to be aware of under the employment rights act and the practical steps organisations and businesses alike should be taking in 2026 to ensure compliance and minimise risk.

The Employment Rights Act 2025 has begun its phased implementation, introducing further duties for employers and significantly expanding employee protections.

These changes have immediate implications for all employers, who must now review all contracts of employment, workplace policies and day to day management practices.

In this article we discuss the key changes that employers should be aware of as a result of the Employment Rights Act 2025 and the steps employers should be taking in 2026 to ensure compliance with the legislation and to help minimise any risk.

Employment rights act 2025, review employment contracts, handbooks and policies

The Employment Rights Act 2025 introduces a number of day-one statutory entitlements for employees, including statutory sick pay and paternity leave.

Statutory sick pay is now payable from the first day of sickness and is available to all employees, removing both the previous waiting days and the lower earnings limit.

Similarly, the entitlement for paternity leave and unpaid parental leave now applies from the first day of employment.

Any contractual sick pay clauses, sickness absence policies or enhanced sick pay schemes which assume a later start date or which include an earnings threshold should therefore be reviewed and amended.

Any references to qualifying service periods in parental leave policies will also need to be amended.

Employers should audit all contracts, handbooks, and policies to ensure they reflect the new statutory position and avoid any confusion or potential claims.

Update disciplinary, grievance and redundancy procedures

Enhanced worker protections under the Employment Rights Act 2025 place greater emphasis on procedural fairness, particularly where concerns are raised internally or employees are affected by organisational change.

The maximum protective award for failure to comply with collective consultation obligations has now doubled from 90 days’ pay to 180 days’ pay.

This significantly increases employer’s financial exposure for procedural failures.

Redundancy procedures now demand closer attention, and employers should ensure redundancy processes are clearly documented and legally compliant to avoid the protective award being applicable.

Disciplinary and grievance procedures should be updated to reflect the expansion of whistleblowing protection to include disclosures relating to sexual harassment, ensuring managers understand how such complaints must be handled.

Prepare for increased enforcement and strengthen record‑keeping

A central feature of the employment rights act is the creation of the Fair Work Agency, operational from April 2026.

The Fair Work Agency consolidates enforcement powers in respect of:

  • Statutory Sick Pay
  • National Minimum Wage
  • Holiday entitlement and holiday pay

Crucially, the Agency has the power to investigate employers without an employee bringing a claim.

In parallel, employers are now required to retain records demonstrating compliance with holiday entitlement and holiday pay rules for six years.

Employers should therefore review their record‑keeping systems to ensure they can produce clear, accurate and accessible evidence of compliance if requested.

This includes records of holiday accrual, leave taken and holiday pay calculations.

The creation of the Fair Work Agency means that good record‑keeping is no longer merely best practice but is key.

Review sexual harassment policies and carry out a risk assessment before October 2026

By October 2026 the Employment Rights Act will strengthen employers’ duties to take all reasonable steps to prevent sexual harassment.

Employers will be required to take preventative action rather than acting reactively.

Employers must therefore review their sexual harassment policies now to ensure they are up to date, accessible and clearly communicated.

In addition, employers should conduct and document a sexual harassment risk assessment, identifying areas of heightened risk within their organisation, such as customer facing environments, lone working or power imbalances.

Employers will be liable for all types of harassment from third parties, for example customers or clients, unless they have taken all reasonable steps to prevent it happening. Being able to evidence this risk assessment and the mitigation will be critical if issues arise once the enhanced statutory duties come into force.

Sexual harassment is also now a ‘qualifying disclosure’ under whistleblowing law. This means whistleblowers making a sexual harassment disclosure have protection from detriment and unfair dismissal.

Issue an all-staff communication about their right to join a Trade Union before October 2026

As part of the wider reforms to trade union law, the Employment Rights Act 2025 will require employers to provide all workers and employees with information about their right to join a trade union. This reflects a broader shift towards strengthening collective rights and transparency in the workplace.

Employers should plan ahead and issue a clear and neutral all‑staff communication explaining this right before October 2026. The wider reforms to trade unions include the following changes:

From 18 February 2026:

  • The time needed to give notice of industrial action reduced to 10 days, instead of 14 days.
  • Picket supervisors are no longer required.
  • Industrial action mandates last for 12 months, instead of 6 months.
  • Industrial action and ballot notices were simplified.
  • Political fund rules change.
  • The support threshold rule for trade union ballots has been removed. Now both public and private sector ballots now follow the same requirement, they only need more votes in favour of industrial action than against.

These changes will happen in August 2026:

  • Trade union members will be able to vote electronically or in-person in ballots for industrial action, union elections and other statutory ballots if the employer and trade union agree.
  • The removal of the requirement for a 50% turnout for industrial action ballots. These trade union changes will happen in October 2026:
  • Updated rules on a trade union’s right of access to the workplace and an updated Code of Practice on trade union recognition.
  • The right to reasonable accommodation and facilities for trade union representatives carrying out their duties.
  • The right to time off for union equality representatives to carry out their duties.

Other important changes to the employment rights act employers should be aware of

In addition to the headline reforms, employers should also prepare for:

  • Tipping law will change in October 2026, and employers will need to consult with workers before creating a tipping policy and to then update their tipping policy every 3 years.
  • The time limit for making a claim to an employment tribunal will increase to 6 months for all claims in October 2026. The current time limit for most claims is 3 months.
  • From 18 February 2026, dismissal for taking part in industrial action became ‘automatically unfair’. Workers taking part in industrial action will be protected against detriment (less favourable treatment), in addition to unfair dismissal, from October 2026.
  • There will be new measures for public sector outsourcing from October 2026. This is to avoid having different terms and conditions for ex-public sector employees and private sector employees.
  • In December 2026 there will be a new mandatory charter for seafarers, with higher standards around health and safety, pay, job security and rest breaks.

We have discussed the changes that have been implemented or are due to come into force later in 2026. Further changes are due to be implemented in 2027, and employers will need to ensure that they stay up to date with the upcoming changes and that they are ready to implement them.

Employment rights act – how Blake-Turner LLP can help

The employment rights act represents a rolling change programme rather than a single compliance deadline. Employers that take early, proactive advice will be best placed to manage risk and adapt successfully. Blake Turner LLP advises employers on:

  • Contract and policy audits
  • Redundancy and restructuring compliance
  • Workplace investigations and harassment prevention
  • Trade union and industrial relations strategy

If you would like advice on how the employments right act affects your organisation or support with implementing the steps outlined above, our employment law team would be pleased to assist.

Contact the team at Blake-Turner LLP if you would like to discuss changes to the Employments rights act and how these impact your business.