The Employment Rights Act 2025 represents a significant overhaul of UK employment law.
However, businesses with strong employment practices ought to prepare rather than panic, according to WHN Solicitors’ Head of Employment Law, Rudy Fendlen.
Rudy described the changes as ‘important’ but stressed the risk of the legal industry overstating their practical impact on many employers.
He believes businesses should use the coming months to review policies, strengthen record-keeping and prepare for further reforms, to adopt a ‘prevention, rather than cure’ approach.
What changes have been made so far?
18 February 2026
Trade union rights were strengthened, including greater protection for employees taking lawful industrial action, while dismissal for taking part in industrial action became ‘automatically unfair’.
The period covered by a successful union ballot was extended from six to 12 months, and the requirement for a picketing supervisor was removed.
6 April 2026
Statutory Sick Pay became available from day one, with the lower earnings limit removed. Employees also gained day-one rights to paternity leave and unpaid parental leave.
Protections around sexual-harassment whistleblowing were strengthened and Bereaved Partners’ Paternity Leave was introduced. Further trade union reforms made recognition easier and administrative requirements less onerous.
The maximum protective award for certain collective redundancy failures was also doubled. Employers must keep records of annual leave and holiday pay for at least six years.
7 April 2026
The new Fair Work Agency came into operation, bringing together the enforcement of a range of employment rights under one body.
What changes are on the way?
October 1, 2026
Most Employment tribunal time limits will increase from three to six months.
October 30, 2026
Employers will need to take “all reasonable steps” to prevent sexual harassment of their workers. They may also be liable for harassment by third parties, for example customers or clients, unless they have taken all reasonable steps to prevent it.
January 2027
Employees will have the right to claim unfair dismissal after just six months’ employment, instead of two years. Employers will face much tighter ‘fire and rehire’ restrictions.
Further changes in 2027
Further changes expected in 2027 include new rights for workers on zero-hours and certain low-hours contracts, including rights relating to guaranteed hours, shift notice and compensation for certain cancelled shifts.
There will also be a new statutory right to bereavement leave, mandatory gender equality action plans for larger employers, including measures relating to gender pay reporting and menopause, further flexible working reforms, restrictions on certain non-disclosure agreement provisions relating to workplace harassment and discrimination, and new rules regulating umbrella companies.
Rudy’s verdict
These reforms are significant, but there is a risk of overstating their practical impact on many employers. I see a passing shower rather than a storm.
The question I am being asked most frequently is: What does this mean for businesses?
In truth, for businesses that already have sound employment practices in place, the impact is likely to be less than feared. There are important changes to take note of, but drama does not need to be the order of the day; there is no employment law apocalypse on the horizon.
Take unfair dismissal, for example, one of the most significant updates to the legislation. While the qualifying period is changing, fundamental principles remain and employers will still need a fair reason and a fair process. Probationary periods and effective performance management are going to be key.
One trend I have noticed in our work is greater use of settlement agreements, alongside a rise in employee exits. It suggests both employers and employees are adopting a more proactive approach to bringing employment relationships to an end.
One practical impact we may see in time is an increase in Employment Tribunal claims, as employees will have more time to bring them.
Rudy’s advice
Operationally, businesses will need to prepare for proposed updates to the ACAS Code of Practice – which effectively sets the framework for handling disciplinary and grievance matters. Employers’ policies, procedures and management practices will need reviewing if the Code is revamped.
Right now, there is not a lot of discussion around third-party harassment, but this could expose businesses to significant risk. Employers may be liable where staff are harassed by customers, clients or other third parties unless they have taken all reasonable steps to prevent such conduct. For customer-facing businesses, this is likely to require a greater focus on prevention, staff training and responding appropriately to complaints.
The businesses best placed to navigate these changes will be those that understand what is changing, review their policies and procedures accordingly, and address potential problems before they become disputes.
Businesses should ensure they understand what is changing and when and seek advice as early as possible to make compliance far easier. It will be crucial to maintain proper documentation relating to performance, conduct, absence, grievances and disciplinary processes.
The reforms should be seen as a prompt to review documentation and management processes, particularly in light of the proposed ACAS Code changes. Businesses that prepare well can significantly reduce the risk of disputes arising in the first place. When claims do arise, good records are often the difference between successfully defending an Employment Tribunal claim and losing one.
Prepare now rather than waiting for the rain to fall.
Rudy Fendlen is a Director and Head of Employment Law at WHN Solicitors. A Chartered Legal Executive Litigator, Rudy specialises in employment law and advises both employers and employees on a wide range of sensitive workplace issues and disputes.
If you’re looking for an employment law solicitor for business matters, WHN Solicitors advises employers across Lancashire, Greater Manchester and throughout England and Wales on the full range of contentious and non-contentious employment law issues.
Contact Rudy Fendlen on 0161 761 8067 or rudy.fendlen@whnsolicitors.co.uk.
