Understanding the New Employment Rights Act 2025: What It Is and Why It Matters

🗓️ Blog Post — Tuesday

Understanding the New Employment Rights Act 2025: What It Is and Why It Matters

The Employment Rights Act 2025 has now become law in the UK, ushering in what many legal experts are describing as the most significant overhaul of employment rights in a generation.

So what’s changing?

✔️ Stronger dismissal protections — the qualifying period to claim unfair dismissal will reduce from two years to six months by early 2027, meaning more employees can bring claims and employers need to plan more carefully.
✔️ New day-one rights — paternity and ordinary parental leave, as well as statutory sick pay from day one of illness, are being introduced in 2026.
✔️ Fire-and-rehire restricted — dismissing and rehiring staff on worse terms will be treated as automatic unfair dismissal in most cases from October 2026.
✔️ Zero-hours protections — workers will get rights to guaranteed hours where appropriate and compensation if shifts are cancelled without reasonable notice.
✔️ Fair Work Agency — a new enforcement body is being established to ensure rights like holiday pay and sick pay are respected.

These changes are rolling out in phases through 2026 and 2027, so organisations need to plan now, not later.

Matthew Chilcott, Managing Director of Consensus HR, says:
“This isn’t just another employment law update — this is a pivot in how UK workplaces function. These reforms expand protections while challenging employers to refine policies, manage risk more proactively, and reinforce a culture of fairness.”

Why This Matters to You
For employers, staying compliant isn’t optional — these changes impact anything from contracts and dismissal practice to absence management and flexible working policies. For employees, it means earlier access to rights and greater workplace security.

👉 Consensus HR is here to help you interpret and implement these changes into your HR strategy with confidence and clarity.