The much-anticipated Employment Rights Bill received Royal Assent on 18 December 2025 and is now law as the Employment Rights Act 2025.

The Act will be introduced in phases over the next two years, with the first significant changes expected from April 2026. Now that the legal framework is confirmed, employers should begin preparing to manage risk, control costs and remain compliant.

WBW can support employers in understanding the impact of the new legislation and taking practical steps to protect their business. Early preparation will be essential, particularly with major changes coming into force from April 2026 and beyond.

Changes from April 2026

Family-friendly rights

From April 2026, employees will benefit from enhanced family-friendly rights, including:

  • Day-one entitlement to paternity leave (currently six months’ service required)
  • Day-one entitlement to up to 13 weeks’ unpaid parental leave (currently 12 months’ service required)
  • Government introduction of the Fair Work Agency increasing access to certain types of claims.

Statutory Sick Pay reforms

Statutory Sick Pay will be reformed, increasing costs for many employers. Key changes include:

  • Removal of waiting days, meaning SSP will be payable from day one
  • Removal of the lower earnings limit, making all workers eligible
  • SSP paid at 80% of earnings for those earning below the flat rate (currently a minimum of £125 per week)

Increased risk of claims

Employers will face a greater risk of employment claims due to:

  • Expanded whistleblowing protections, including complaints relating to sexual harassment
  • Increased potential for detriment claims with higher compensation awards
  • Higher penalties for failures relating to collective redundancy obligations
  • Increased Acas early conciliation window from 6 weeks to 12 weeks potentially extending to limitation period.

Changes from October 2026

Further reforms are expected from October 2026, including:

  • Tighter controls on fire-and-rehire practices
  • Stronger rules governing tips
  • Expanded trade union rights
  • A new duty on employers to take “all reasonable steps” to prevent sexual harassment
  • Increase in the limitation window for employees to bring a claim from 3 months less one day to 6 months less one day.

Changes from January 2027

Unfair dismissal

From January 2027, unfair dismissal rights will be significantly expanded:

  • Reduction of the qualifying service period from two years to six months
  • Removal of the compensatory cap

Wider employment reforms

Additional reforms are expected in relation to:

  • Flexible working
  • Bereavement leave
  • Protections for pregnant workers
  • Restrictions on zero-hours arrangements
  • Regulation of umbrella companies

How WBW can help

WBW’s Employment team can help employers navigate the Employment Rights Act 2025 with confidence.

Employers who join the WBW Employment Law Package will receive regular updates explaining the changes in the law and the steps required to remain compliant. Where written guidance is required, such as updates to employment contracts, policies or procedures, this will be provided.

We can also attend your organisation to deliver tailored presentations on the Employment Rights Act 2025 and its practical impact. For existing Employment Law Package members, we are already working on updating staff handbooks and contracts to reflect the new requirements.

For further information, or to arrange an appointment, please contact Kerry Curd in the employment team on 01626 202406 or email KerryCurd@wbw.co.uk.

WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.