Employment Rights Act Now Set In Law
The much debated and discussed Employment Rights Bill has now become law after it received Royal Assent on 18 December 2025.
The Employment Rights Act 2025 will introduce additions and amendments to existing legislation, and the changes will take place over a period of 2 years. The key change to unfair dismissal rights is due to come into force in January 2027.
One change has already come into force – the rules around 'minimum service levels for strikes were removed on 18 December 2025. These rules were about keeping services running during a strike.
Here is a summary of the changes due to take place in the first 6 months of 2026:
February 2026
Dismissal for taking part in industrial action will become 'automatically unfair'. In addition, the law around trade union activity will change - the time needed to give notice of industrial action will reduce to 10 days, from the current 14; unions will need a simple majority to vote for industrial action; picket supervisors will no longer be required; industrial action mandates will last for 12 months, instead of 6 months; industrial action and ballot notices will be simplified and political fund rules will change.
April 2026
Paternity leave will become a 'day one right', allowing someone to give notice of leave from the first day of employment – currently someone must have worked for their employer for 26 weeks. Ordinary parental leave will also become a day one right – currently someone must have worked for their employer for 1 year to be eligible, and the restriction on taking paternity leave after shared parental leave will be removed.
Statutory sick pay (SSP) will be paid from the first day of illness, instead of the fourth day, and the lower earnings limit will be removed – currently, workers must earn a minimum amount to be eligible for statutory sick pay.
Collective redundancy protective award - the maximum 'protective award' for failure to consult in collective redundancy will double from 90 days' pay to 180 days' pay.
Sexual harassment will become a 'qualifying disclosure' under whistleblowing law. This will mean protection from detriment and unfair dismissal for whistleblowers making a sexual harassment disclosure.
Employers will need to create action plans around menopause and gender pay gaps. These will be voluntary from April 2026. They will become mandatory sometime in 2027.
More trade union changes will also come into force - simplifying how a trade union can gain recognition in a workplace and allowing trade union members to vote electronically.
The Fair Work Agency will be established to bring together existing enforcement bodies, and to take on enforcement of other employment rights, such as holiday pay and statutory sick pay.
To prepare for these changes, businesses will need to update their HR policies and processes.
How can HR Solutions Yorkshire help your business?
With over 30 years experience in senior HR roles, Sarah Darbyshire works with business owners and management teams across Yorkshire to design and implement successful HR strategies.
To find out more about how we can support your growing business, get in touch with Sarah on 07495 857525, or email sarah@hrsolutionsyorkshire.co.uk.
You can also find our website at www.hrsolutionsyorkshire.co.uk
