This article was originally published in edition 50 of the Business First Magazine by LawNet.
The Employment Rights Act 2025 is bringing significant changes to the relationship between employers and employees, with some reforms already in force and others due later this year and in 2027.
When employment disputes arise, the problem is often not simply that an employer was unaware of the law. A decision may have been made too quickly, concerns may not have been documented, or a manager may have followed a process that is no longer appropriate.
With that in mind, outlined below are three areas where employers should look closely at how decisions are being made.
Be careful when family leave and employment decisions overlap
Paternity Leave and Unpaid Parental Leave became day-one rights on 6 April 2026.
The important point for employers is that these are protected rights. Dismissing an employee because they have taken paternity leave can be automatically unfair regardless of their length of service, while employees taking parental leave are protected against dismissal and detriment.
A risk can arise where family leave coincides with another decision, such as extending probation, addressing performance or ending employment.
It is advisable to be particularly careful about the evidence supporting that decision. If there are genuine performance or conduct concerns, they should be raised and recorded when they arise. An employer should be able to show clearly that its decision was unrelated to the employee exercising a family leave right.
Do not wait for a harassment claim to test your procedures
From 30 October 2026, employers will have to take ALL reasonable steps to prevent sexual harassment and will have a new obligation not to permit employees to be harassed by third parties, such as suppliers, agents, customers or clients.
A key legal question if a claim arises is likely to be what the employer actually did to prevent the problem.
That means employers should be able to evidence the risks they considered, all the preventative steps they took and evidence of their efficacy in the workplace. For example, a generic policy may carry limited weight if known risks involving clients, social events or particular working environments were never risk assessed or addressed.
Do not leave probation decisions until month six
From 1 January 2027, employees will ordinarily gain unfair dismissal protection after six months rather than two years. Probation periods themselves are not changing, and there is still no legal requirement for an employer to have one.
For businesses that already use six-month probation periods, timing therefore becomes important.
If concerns have existed for several months but no action is taken until the end of probation, the employer may find that the employee has acquired unfair dismissal protection by the time dismissal is considered.
It is advisable to raise concerns as they arise, keep evidence of the issues and any support provided, and make probation decisions in good time. After six months, an employer will generally need to establish a potentially fair reason for dismissal and follow a fair process.
Deal with the issue before it becomes the dispute
The common thread running through these changes is evidence and timing. Policies matter, but when a claim is threatened, the questions are usually much more practical: Why was this decision made? When was the problem first raised? What did the employer know, and what action did it take?
From 1 October 2026, the time limit for bringing most Employment Tribunal claims will also increase from three to six months, meaning potential disputes can remain live for longer.
Taking advice before making a difficult employment decision can help employers identify those risks early and put themselves in a much stronger position if the decision is later challenged.
Employment Rights Act 2025: some key dates at a glance
Already in force in 2026
18 February
- Stronger protection against dismissal for taking industrial action.
- Changes simplifying a number of trade union and industrial action rules.
6 April
- Paternity Leave and Unpaid Parental Leave became day-one rights.
- Statutory Sick Pay became payable from the first day of sickness, with the Lower Earnings Limit removed.
- The maximum protective award for failures in collective redundancy consultation doubled from 90 to 180 days’ pay.
- Whistleblowing protections were extended to disclosures about sexual harassment.
- Voluntary gender equality and menopause action plans were introduced.
7 April
- The Fair Work Agency was established to bring together enforcement of a number of employment rights.
25 August
- Electronic and workplace voting will be permitted for statutory trade union ballots.
1 October
- The time limit for most Employment Tribunal claims will increase from three months to six months.
Still to come in 2026
30 October
- Employers will have to take ALL reasonable steps to prevent sexual harassment.
- New protection against harassment (relating to all protected characteristics) by third parties, including suppliers, agents, customers and clients.
- Further changes to trade union rights including the right to a statement of trade union rights and the right of access to workplaces and employers’ obligations towards unions.
Coming in 2027
From 1 January
- Ordinary unfair dismissal protection will apply after six months’ service rather than two years.
- The cap on compensatory awards for unfair dismissal will be removed.
- Stronger restrictions on ‘fire and rehire’, with the practice becoming automatically unfair in many circumstances.
- Removal of the minimum service requirement for unfair dismissal claims relating to the existence of, or failure to disclose, spent convictions.
During 2027
Further reforms are expected to include:
- stronger dismissal protection during pregnancy and following maternity leave
- a new right to statutory bereavement leave, including provisions relating to pregnancy loss
- new rights to guaranteed hours for zero-hours and low-hours workers
- reasonable notice of shifts and compensation for cancelled or shortened shifts
- stronger requirements when refusing flexible working requests
- mandatory gender equality and menopause action plans
- new collective redundancy rules looking at redundancies across the whole organisation
- restrictions on NDAs that prevent workers speaking about workplace harassment or discrimination
- further rules defining the steps employers should take to prevent sexual harassment.
Future implementation dates remain subject to parliamentary processes and, for many of the 2027 reforms, the precise commencement date has not yet been confirmed.
You can read the full magazine here.
