Employment Rights Act
The Employment Rights Act 2025 (formerly the Bill) became law in December 2025, introducing the biggest shake-up to UK workplace rights in a generation, with major changes phasing in through 2026 and 2027. Key reforms include restricting "fire and rehire" practices, ending exploitative zero-hours contracts, implementing a 6-month probation period for unfair dismissal rights by Jan 2027, and strengthening union rights.
Key Changes and Timeline (2026-2027)
Zero-Hours Contracts: Workers will have the right to a contract that reflects their actual hours worked, and rights to guaranteed hours and notice of shifts.
Unfair Dismissal & Probation: From 1 January 2027, a new six-month statutory probation period will apply, during which dismissal rules are lighter. After this, employees gain unfair dismissal protection
Fire and Rehire: Stricter limitations make it largely unfair to fire and rehire staff to change terms, except in severe financial scenarios.
Sick Pay & Leave (April 2026): Statutory Sick Pay (SSP) will be available from day one, removing the three-day waiting period and earnings threshold.
Family Friendly Rights (April 2026): Day-one rights for paternity and unpaid parental leave.
Flexible Working: Enhanced requirements for employers to only refuse requests if it is genuinely reasonable to do so.
Collective Redundancy & TUPE: Increased protections for employees during restructuring.
Fair Work Agency: A new statutory body will be created to enforce these rights.
Actions for Employers
Review and update contracts to comply with new minimum hour requirements.
Revise probationary period policies and performance management processes ahead of January 2027.
Update company policies on sick pay, flexible working, and family leave by April 2026.
Prepare for stricter consultation requirements regarding "fire and rehire" and redundancies.