What HR Must Know About Employment Rights Act 2025

The enactment of the Employment Rights Act 2025 represents one of the most profound transformations of the UK labour market in over a generation, with April 2026 marking a significant milestone in the process.

The legislation fundamentally looks to shift the dial from workplace rights being treated as a loyalty bonus – something that’s earned over years of service – by introducing “Day One” protection for employees. 

Employees are therefore able to focus on their employment, rather than worrying about job security. 

Understanding the timeline 

Introducing the legislation to the workplace is being done through a multi-layered approach. 

April 1: The government has officially scrapped the mandatory fee – known as a levy – that trade unions and employer groups were required to pay to the Certification Officer.

April 6: The following will be introduced: 

• Collective redundancy protective award, which doubles the maximum period of the protective award.
• Day 1 paternity leave and unpaid parental leave.
• Whistleblowing, to strengthen the protections for workers who ‘blow the whistle’ on sexual harassment.
• Bereaved partners’ paternity leave allows grieving fathers or partners to take up to 52 weeks of leave if the mother or primary adopter passes away during the child’s first year, ensuring they have the time they need to care for their family.
• Statutory Sick Pay, the Lower Earnings Limit (LEL), means employees no longer have to earn a minimum amount to qualify for support. The "waiting period" has also been scrapped, with employees now eligible for sick pay from their first day.

April 7: The Fair Work Agency will be established. A regulation designed to protect the rights of workers by consolidating various enforcement bodies into a single watchdog with the authority to inspect workplaces, take legal action on behalf of employees, and issue heavy financial penalties for non-compliance. 

October and beyond: The following will be introduced:

• Zero tolerance for harassment: “All reasonable steps” must now be taken by employers to prevent sexual harassment in the workplace, including harassment by third parties, such as customers or clients.
• A new era for Trade Unions: The balance of power shifts as unions gain a formal “right of access” to workplaces, stronger protections for their representatives, and a new requirement for employers to inform every worker of their right to join.
• Fair pay: A dedicated negotiating body will be established in England to set sector-wide standards for pay and conditions, alongside a “two-tier code” to protect workers in outsourced public services.
• Unfair dismissal: From 1 January 2027, the qualifying period for bringing an unfair dismissal claim will be reduced from two years to six months. The reforms also introduce new statutory restrictions on the use of ‘fire and rehire’ practices, strengthening protections for workers facing contractual changes.

What this means for HR leaders

TUC General Secretary Paul Nowak said in a statement: “This is a landmark day for millions of workers. The Employment Rights Act represents the biggest upgrade in workers’ rights in a generation.

“It will deliver common sense changes like banning exploitative zero hours contracts, protecting workers from harassment and sick pay for all – and so much more. These are hard-won rights that the union movement and workers have long campaigned for.”

As a result, the Employment Rights Act 2025 marks a shift from reactive administration to strategic compliance, which HR leaders need to be aware of. 

With Day 1 rights now coming into play, HR leaders must have an immediate overhaul of payroll systems and onboarding workflows to ensure there are no eligibility gaps.

Paul added: “For too long, we [England] have lagged behind our European counterparts on workers’ rights. This legislation takes us closer to the mainstream.

“We are finally closing the door on the broken status quo defined by insecurity, poor pay and weak rights.”