13 Feb 2026
This guide gives business owners, directors, managers and HR leads a clear, practical overview of the Employment Rights Act 2025, including why it was introduced, what’s changing, when it takes effect, and what you should do now to prepare.
The changes will affect how all sectors manage their workforce.
The Employment Rights Act is now law.This legislation represents the most significant reform of UK employment law in more than a decade.Although the Act is now law, its provisions will be introduced in phases from April 2026 through to 2027.For small and medium-sized businesses in particular, early preparation is critical. Planning ahead will help you:
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The Employment Rights Act sits at the centre of the government’s Plan to Make Work Pay. Its purpose is to:
The Act addresses long-standing issues including:
For businesses, this means clearer obligations, but also greater accountability in how employees are treated.
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The following legislation will be repealed:
Protection from detriment for industrial action
Employers cannot subject workers to any detriment (unfavourable treatment) aimed at deterring them from taking part in lawful industrial action, or penalising them for doing so.
Stronger protection from dismissal
It becomes automatically unfair to dismiss an employee for participating in protected, lawful industrial action.
This removes the previous 12-week limit on unfair dismissal protection.
Political fund opt-in requirement removed
Trade union members will no longer be required to opt in to contribute to a union’s political fund.
Simpler strike ballot rules
The extra support threshold for industrial action in important public services is abolished.
Unions will only need a simple majority of votes in favour (as long as at least 50% of those eligible vote) for a strike to be valid.
Less detailed ballots and notices
Ballot papers no longer need the additional detailed information that was previously required.
The notice period unions must give employers before starting industrial action is reduced from 14 days to 10 days.
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From 6 April 2026, the following changes take effect.
Employers will wish to:
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For children born or placed for adoption from 6 April 2026 (or where this is their expected week of childbirth):
For employers, this means updating eligibility criteria in policies and ensuring managers understand the new entitlements.
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All employees can access unpaid parental leave from day one of employment.
Businesses should ensure internal systems no longer reference qualifying service periods.
From April 2026, Sexual harassment in the workplace will be added to the list of protected disclosures under whistleblowing legislation.
Where a disclosure meets the requirements of a protected disclosure (for example, it is in the public interest), the individual is protected from detriment, including dismissal.
An individual may bring a tribunal claim if they suffer detriment or dismissal relating to the disclosure.
For employers, this increases legal risk if reporting channels and investigation procedures are not robust.
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From the 7 April 2026, The Fair Work Agency will become a central enforcement body where workers and employees can seek help.
Proposed powers include:
For SMEs, this means increased visibility and enforcement of compliance failures.
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Maximum period of the collective redundancy protective award increases from 90 days to 180 days. In 2027 a new threshold test will be introduced meaning that employers proposing 20 or more redundancies ‘at one establishment’ OR a certain number/percentage of employees are affected across the employing entity must carry out collective consultation. This new threshold test is yet to be determined and will be set out in regulations.
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A new threshold test will be introduced.
Employers proposing:
The new threshold test is yet to be determined and will be set out in regulations.
For multi-site or growing SMEs, this may significantly change redundancy planning obligations.
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Measures already effective since Royal Assent and/or since 6 January 2026:
Measures effective 18 February 2026:
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Employers with 250+ employees will be required to:
Voluntary reporting begins in April 2026.
Mandatory publication of action plans takes effect in 2027.
How can you prepare?
Many businesses already report on gender pay gaps. The change now requires action plans.
These plans should:
Organisations can prepare by:
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A menopause action plan outlines the steps an employer takes to support employees going through menopause.
Plans should be tailored to the organisation and may include:
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Regardless of sector, employers should:
Early preparation is particularly important for small businesses without in-house HR.
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Early planning helps businesses:
Proactive compliance is not just a legal issue - it is a commercial and reputational one.
If you are unsure how these changes affect your business, or need support preparing for April 2026 and beyond, contact The HR Branch:
Please note that some dates are still under review and may be subject to change. We encourage you to keep an eye on our regular updates and posts for the latest information.