Employment Rights Act 2025

Here are the key employment law changes affecting UK employers

1.        Earlier access to unfair dismissal protections

The qualifying period for unfair dismissal claims is reducing from 2 years to 6 months. This will significantly shorten the employer’s window in which new hires can be assessed before they can gain legal protection. This means employers need to ensure recruitment procedures, probationary reviews and performance management procedures are robust and well-documented from the start.

2.        Reforms to statutory sick pay

The statutory sick pay (SSP) waiting period and earnings threshold is being removed. This means employees can qualify for SSP from the first day of employment. This may lead to increased absence costs resulting in a greater importance on consistent effective absence management.

3.        Changes to zero-hours and unpredictable contracts

The changes to The Act introduces new protections against insecure work. This means employers may be required to offer contracts with regular working patterns and provide reasonable notices of shifts. Compensation may need to be provided where shifts are cancelled at short notice. This means businesses that rely on flexible working arrangements should review workforce planning and scheduling practices.

4.        Strengthened flexible working rights

Employees will have stronger rights to request flexible working arrangements. Employers can still refuse requests as long as they are on legitimate business grounds but they must demonstrate that requests have been considered reasonably. This means clear policies and well-trained managers will be essential to ensure requests are handled appropriately.

5.        Restrictions on “fire and rehire”

Dismissing employees and rehiring them on less favourable terms will face tighter scrutiny. Employers will need to demonstrate that contract changes are necessary and that meaningful consultation has taken place. Organisations should seek legal advice before pursuing contractual changes that could engage these provisions.

6.        Enhanced duty to prevent workplace harassment

Employers will be subject to a strengthened duty to take all reasonable steps to prevent harassment, including harassment involving third parties such as customers or clients. This reinforces the need for effective workplace policies, reporting procedures and regular training for staff and managers.

The Employment Rights Act 2025 signals a clear shift towards stronger worker protections and increased employer accountability. Early preparation will be key to mitigate legal risk to ensure compliance.

‍