Following the first phase of implementation in April 2026, attention is now turning to the remaining timetable for the Employment Rights Act 2025. While some measures in relation to the Employment Rights Act have already taken effect, including changes to statutory sick pay, family leave rights, and increased tribunal compensation limits, many of the most significant measures in relation to the Employment Rights Act are still to come from August 2026, through late 2026, and throughout 2027.
Key Points
- The Employment Rights Act implementation timetable has been updated.
- Major Employment Rights Act changes remain scheduled for October 2026 and throughout 2027.
- Employment tribunal time limits are expected to increase from three months to six months, with implementation expected no earlier than October 2026.
- From 1 January 2027, the unfair dismissal qualifying period is expected to reduce from two years to six months.
- The statutory cap on unfair dismissal compensation is also expected to be removed from 1 January 2027.
- New restrictions on fire and rehire practices are expected to take effect from January 2027.
- New rights for zero-hours and low-hours workers are expected during 2027, including contracts reflecting regular hours, shift notice protections, and compensation for cancelled shifts.
Importantly, the government has recently revised parts of the implementation roadmap for the Employment Rights Act, pushing back several high-profile changes and providing greater clarity on when employers can expect the next stages of the Employment Rights Act timetable to commence.
August to December 2026: Tribunal and Workplace Changes
The next major phase of changes arising out of the Employment Rights Act 2025 is scheduled between August and December 2026. One of the key changes planned for this stage is the extension of employment tribunal limitation periods from three months to six months in many claims. This will significantly increase the period during which employees may commence proceedings and is likely to have important implications for litigation risk, document retention, and internal grievance handling. Implementation is expected no earlier than October 2026.
October 2026 is also expected to bring further trade union changes and strengthened workplace protections relating to harassment. The government has confirmed that employers will be required to take “all reasonable steps” to prevent sexual harassment. Employers will also face liability for third-party harassment across protected characteristics unless they have taken all reasonable steps to prevent it.
In addition, Employment Rights Act changes connected to trade union access rights and industrial relations are expected to continue during this period, although detailed secondary legislation and guidance are still awaited.
| Employment Rights Act 2025: August 2026 Changes | |
| Digital and Workplace Voting in Trade Union Ballots | Trade unions will be able to use pure electronic balloting, hybrid postal/electronic balloting, and workplace balloting, either alone or in combination with postal voting. The changes will apply to industrial action ballots, political fund resolutions, and union elections, with workplace voting expected to be limited to industrial action ballots and generally dependent on employer agreement. A further phase is expected later in 2026 or during 2027 for statutory recognition and derecognition ballots overseen by the Central Arbitration Committee. |
| Employment Rights Act 2025: October 2026 Changes | |
| Union Access and Information Duties | Employers must inform workers of their right to join a trade union, which may be done via a written statement provided alongside the Section 1 statement. Trade unions are granted enhanced access rights, including both physical access to workplaces and digital access (such as via email or intranet). |
| Trade Union Representatives | Enhanced rights and protections apply for trade union representatives, including expanded rights to time off and protection from detriment. |
| Union Equality Representatives | A new statutory role for union equality representatives is introduced, with a legal right to paid time off and access to facilities to carry out equality-related duties. |
| Unfair Practices in Recognition | New restrictions on unfair practices during union recognition campaigns apply once the Central Arbitration Committee accepts an application, limiting employer conduct that could influence ballot outcomes. |
| Employment Tribunal Time Limits | The time limit for bringing most employment tribunal claims is extended from three months to six months. Implementation is expected no earlier than October 2026. |
| Protection Against Detriment | Protections against detriment connected with participation in industrial action are strengthened, addressing gaps identified by case law and expanding worker protections. |
| Adult Social Care Negotiating Body | Regulations will be introduced to establish a negotiating body for the adult social care sector in England, enabling the development of sector-wide Fair Pay Agreements. |
| Allocation of Tips | The law on allocation of tips is strengthened. Employers must consult with workers or union representatives before introducing or revising a tipping policy, and must review and update their written policy at least every three years. |
| Two-Tier Workforce Code | The two-tier workforce code is implemented in the public sector procurement context, aimed at preventing disparities in pay and conditions between transferred and newly hired workers. |
| Sexual and Third-Party Harassment | Employers must take “all reasonable steps” to prevent sexual harassment of employees. Employers will also be liable for third-party harassment relating to all protected characteristics, including harassment by customers, clients, and suppliers, unless they have taken all reasonable steps to prevent it. |
| Employment Rights Act 2025: December 2026 Changes | |
| Mandatory Seafarers’ Charter | New minimum employment standards will be introduced for seafarers who regularly work in UK territorial waters, through the implementation of a mandatory seafarers’ charter. |
January 2027: Major Unfair Dismissal Changes
Some of the most substantial changes under the Employment Rights Act are now scheduled for 1 January 2027.
Most notably, the qualifying period for ordinary unfair dismissal protection will reduce from two years to six months. This represents one of the most significant changes to unfair dismissal law in over a decade. For dismissals from 1 January 2027, employees will be able to claim ordinary unfair dismissal after six months’ service.
Alongside this, the statutory cap on unfair dismissal compensation will be removed. This will create potentially uncapped exposure for employers in ordinary unfair dismissal claims and is expected to materially increase litigation risk, particularly in relation to senior employees and higher earners.
The government has also confirmed that the new restrictions on “fire and rehire” practices have been delayed from October 2026 until January 2027. Under the new regime, dismissing employees for refusing contractual changes will generally become automatically unfair unless the employer can demonstrate serious financial difficulties threatening the viability of the business and that the changes could not reasonably have been avoided.
This delay is one of the most significant revisions to the original implementation roadmap for the Employment Rights Act and reflects the complexity of the changes and the consultation process surrounding them.
The Employment Rights Act is also expected to introduce significant changes affecting zero-hours and low-hours workers during 2027. Workers are expected to gain the right to be offered a contract reflecting the hours they regularly work over a reference period, together with rights to reasonable notice of shifts and compensation for short-notice cancellations or changes. These protections are also expected to extend to agency workers and are likely to have a particular impact in sectors heavily reliant on casual or variable-hours working arrangements.
| Employment Rights Act 2025: 2027 Changes | |
| Ban on Fire and Rehire | From 1 January 2027, dismissing employees in order to re-engage them on less favourable terms will be automatically unfair in most cases. A limited exception will apply where the employer is facing significant financial difficulty threatening business viability and a fair process has been followed. |
| Dismissal and Re-engagement Code | A revised statutory Code of Practice on dismissal and re-engagement is expected to come into force in 2027 alongside the new fire and rehire regime. |
| Unfair Dismissal Qualifying Period | From 1 January 2027, the qualifying period for ordinary unfair dismissal claims will be reduced from two years to six months. |
| Unfair Dismissal Compensation Cap | From 1 January 2027, the statutory cap on compensatory awards for ordinary unfair dismissal will be removed, with Section 124 of the Employment Rights Act 1996 repealed. Awards will continue to be based on actual financial loss and subject to the employee’s duty to mitigate. |
| Zero-Hours and Low-Hours Contracts | Workers will gain the right to be offered a contract reflecting the hours they regularly work over a 12-week reference period, together with rights to reasonable notice of shifts and compensation for short-notice cancellations or changes. These protections are expected to extend to agency workers. |
| Flexible Working | Employers will only be able to refuse a flexible working request where the refusal is objectively reasonable and based on one of the eight statutory business grounds. Employers must consult with the employee and provide a written explanation. |
| Reasonable Steps to Prevent Sexual Harassment | Regulations are expected to specify steps that may be regarded as “reasonable” when determining whether an employer has taken all reasonable steps to prevent sexual harassment. |
| Gender Pay Gap and Menopause Action Plans | From Spring 2027, large employers (250+ employees) will be required to publish action plans on addressing their gender pay gap and supporting employees experiencing the menopause. |
| Protections for Pregnant Workers | Protection against dismissal will extend from the point the employer is notified of pregnancy until six months after the employee returns to work, with dismissal permitted only in limited circumstances. |
| Statutory Bereavement Leave | A new day-one right to Statutory Bereavement Leave will be introduced for the loss of a dependant, providing a minimum of one week of leave. |
| Collective Redundancy Consultations | A new organisation-wide threshold for collective redundancy consultation is expected to be introduced to prevent employers avoiding obligations by spreading redundancies across multiple sites. |
| Umbrella Company Regulation | A regulatory framework for umbrella companies will be introduced to improve transparency around pay, deductions and employment status. |
| Collective Grievances | Workers will gain a statutory route to raise collective grievances through a trade union or elected representative, with employers required to respond within a formal process. |
| Electronic Voting for Recognition | Statutory recognition ballots are expected to move to electronic and workplace voting during 2027. |
| Single Worker Status Review | The Government is expected to publish its framework for moving toward a single worker status model, although full implementation may follow in later legislation. |
| Fair Pay Agreements (Social Care) | The first sector-wide Fair Pay Agreement for adult social care is expected to take effect during 2027 following the establishment of the negotiating body in 2026. |
| Non-Disclosure Agreements (NDAs) | New rules are expected to render void any confidentiality clauses that seek to prevent workers from disclosing harassment or discrimination. |
| Blacklisting and Industrial Relations Reform | Anti-blacklisting protections will be extended, including coverage of predictive technologies, alongside wider modernisation of the industrial relations framework. |
Ongoing Consultations and Further Guidance
Although the broad timetable in relation to the Employment Rights Act 2025 is now clearer, many operational details remain unresolved. The government continues to consult on various aspects of implementation, including the practical operation of the new unfair dismissal framework, restrictions on contractual variations, and updated codes of practice.
Additional guidance from Acas and secondary legislation are also expected throughout 2026 and 2027. Employers therefore face a prolonged transition period during which policies, procedures, and workforce planning may need to be continually reviewed and updated.
What Employers Should Be Doing Now
Despite some changes not taking effect until 2027, preparation is increasingly important. Employers should begin reviewing:
- dismissal and probation procedures;
- redundancy and restructuring strategies;
- approaches to contractual change;
- grievance and disciplinary processes; and
- document retention and litigation management systems.
The reduction of the unfair dismissal qualifying period alone is likely to alter how many organisations manage recruitment, performance, and probationary periods.
The Employment Rights Act 2025 represents the most substantial programme of employment law changes in years. While implementation of the Employment Rights Act is being phased over an extended timetable, the remaining changes scheduled for late 2026 and 2027 are likely to have a significant practical impact across the UK labour market.
Employers: What This Means
- Employers should begin reviewing probationary periods, dismissal procedures, and redundancy processes ahead of the January 2027 unfair dismissal changes.
- The extension of tribunal limitation periods under the Employment Rights Act is likely to increase litigation exposure and may require revised document retention and dispute management practices.
- Businesses relying on zero-hours or low-hours arrangements should prepare for new obligations relating to guaranteed hours, shift notice, and cancellation compensation.
- Employers considering contractual changes will need to assess the tighter restrictions on fire and rehire practices and the limited financial difficulty exception.
