iAM Learning Blog

Employment Rights Act 2025: Key Changes That You NEED To Know!

Written by Dani Maguire | May 14, 2026 2:53:19 PM

The Employment Rights Act has been updated with new protections designed to improve working life across the UK.

Several important changes have already been introduced, with more expected between now and next year. We’ve been following those developments closely to help make sense of what they actually mean in practice.

Legal changes can often feel dense and difficult to interpret, so we’ve worked with experts to break each update down into clear, simple terms.

While the ideas behind these changes no doubt come from a good place, in reality, they may also pose challenges for employers. Let’s take a look and see what solutions, if any, are available.

April 2026

From April, Statutory Sick Pay (SSP) became payable from day one, removing the existing three-day waiting period. Additionally, the lower earnings limit has now been removed, meaning there’s no earnings threshold to be eligible to receive SSP.

Sounds great for employees. But many employers believe this will lead to an increase in short-term, sporadic absences. Effective absence management will become critical, as these ‘odd’ days off work could soon add up, create staff cover issues, and become costly.

Return-to-work interviews will become even more important. They help employers understand the reason for absence, identify patterns that may need further investigation, and spot underlying health or well-being concerns early. They also give employees the opportunity to discuss any support they may need before returning to work.

Prevention will also play a key role in reducing avoidable absence. Employers should consider whether they’re creating a supportive working environment, promoting a healthy work-life balance, and offering staff access to appropriate well-being support. This could include things like Employee Assistance Programmes, health care plans with 24-hour GP access, or even manager training, focused on confidently supporting employee well-being and attendance.

Statutory paternity leave and parental leave became day one rights for all employees. That means notice of leave can be given from the very first day of employment.

Could such a policy be misused? Potentially. But there are safeguards in place to protect employers from such an event.

Just because the rights are improved doesn’t mean an employee could be absent from their first day, as they must still provide notice. An employee intending to take paternity leave must tell their employer before the end of the 15th week before the baby is due:

  • That their partner is having a baby
  • That they’re planning to take paternity leave
  • The expected week of childbirth and the date they intend their paternity leave to begin

The changes to paternity leave eligibility have not affected statutory paternity pay. Employees must still have at least 26 weeks’ continuous service by the 15th week before the unexpected week of childbirth to qualify for statutory pay.

Employees requesting unpaid parental leave must continue to provide at least 21 days’ notice before their intended start date. Employers still retain the right to postpone parental leave where there’s a significant business reason, such as a serious operational disruption.

Another change is the way sexual harassment is reported. Reporting sexual harassment is now recognised as a qualifying disclosure under whistleblowing legislation. This means employees who raise concerns are protected from unfair dismissal or other unfair treatment as a result of making a report. Importantly, these protections apply regardless of when the incident took place.

The change forms part of a wider effort to strengthen protections against workplace sexual harassment and encourage employees to speak up with confidence. A report of sexual harassment alone may qualify for protection, provided the usual legal requirements for whistleblowing disclosures are met.

Employers should review and update whistleblowing policies to clearly include sexual harassment disclosures. Sexual harassment and dignity-at-work policies should also direct employees to the appropriate reporting process. Just as importantly, reporting systems should feel clear, accessible, and supportive. Managers should be trained to recognise protected disclosures and respond appropriately.

So far, so good. But what’s coming up?

October 2026

From October this year, there will be some major changes. Let’s start with this big one: Trade union rights will increase, as employees will have to allow them access to workplaces or virtual access for the purposes of representation, recruitment, and organisation.

Employers will be able to refuse trade union access only where there is a clear and justifiable reason. Any refusal could be refused by the Central Arbitration Committee, which will decide whether the employer’s response was reasonable. Some organisations will be exempt from these access requests, though: those who employ fewer than 21 people.

The penalties for non-compliance are significant. Financial sanctions will begin at £75,000 for a first breach, rising to £150,000 for a second, and reaching up to a whopping £500,000 for repeated non-compliance.

With these changes fast approaching, we recommend that employers begin preparing now. That means reviewing how trade union access requests would be handled, who would assess them, and what clear evidence would be needed if access was refused. Having a clear process in place before the legislation takes effect could help avoid costly disputes later.

Employers’ responsibilities around preventing sexual harassment will also become significantly stronger. Since October 2024, employers have been required to take reasonable steps to prevent sexual harassment in the workplace. From October 2026, that duty will increase to taking all reasonable steps.

But what does that mean in practice? Well, it means organisations will be expected to take a far more proactive approach. Rather than responding only after an incident occurs, employers should proactively identify potential risks and incorporate preventive measures into everyday management practices.

These risk factors may include:

  • workplace culture
  • lone working
  • work-related social events
  • power imbalances between workers
  • travelling for work, including overnight stays
  • gender, age, disability, or sexuality-related vulnerabilities
  • unclear or inaccessible reporting procedures

Regular sexual harassment awareness training will also become increasingly important. Employers should ensure all staff understand expected standards of behaviour, how to raise concerns, and how reports will be handled.

The changes will also increase employers’ responsibility for harassment committed by third parties, such as customers, contractors, suppliers, or clients. Organisations will need to show they have taken reasonable preventative steps. These might include displaying clear behavioural expectations on-site, introducing reporting procedures for third-party incidents, or including anti-harassment requirements within supplier and contractor agreements.

These upcoming changes are likely to be successful at providing a safer space for all employees and have long been sought after. Admittedly, like the rest of the changes mentioned in this blog, this one will involve some extra work for employees, but it’s worth the short-term pain to create a workplace where employees feel secure.

January 2027

Let’s look a little further ahead, now. From January 2027, employees will gain unfair dismissal protection after six months of employment, replacing the current two-year qualifying period.

For many employers, probationary periods are used to assess whether a new starter is suitable for the role. However, the new legislation will effectively override longer probation periods under existing contracts. Once an employee reaches six months’ service, they will gain unfair dismissal protection regardless of whether their probation period has formally ended.

What does this mean for employers? For a start, this places much greater importance on the first few months of employment. Employers will need to assess performance early, address concerns quickly, and make informed decisions about long-term suitability before that six-month milestone is reached: not always easy.

Also, they will need to set clear expectations and communicate regularly. Setting measurable objectives from the outset gives employees a clear understanding of what is expected, while providing managers a fair framework for assessing performance. Regular review meetings can also help identify training needs, knowledge gaps, or performance concerns early enough for improvements to be made.

Documentation will become increasingly important, too. Keeping accurate records of review meetings, feedback discussions, and performance concerns will help employers demonstrate that any decisions made during probation were reasonable, evidence-based, and properly managed.

It’s also important to note that the change is expected to apply retrospectively. This means employees who already have more than six months’ service by 1st January 2027 are also likely to gain unfair dismissal protection from that date.

In summary

The Employment Rights Act changes represent one of the biggest shifts in workplace rights in recent years. While many of the updates are designed to strengthen employee protections, they will also require employers to take a far more proactive approach to people management, workplace culture, and compliance.

For some organisations, these changes may only require small policy updates. For others, they could mean completely rethinking how absence, probation, well-being, reporting procedures, and workplace conduct are managed day to day.

The key takeaway from this blog is simple. Preparation matters.
Employers who start reviewing policies, training managers, and strengthening internal processes now will be in a far better position when the remaining changes come into force.

Employment law can often feel complex and inaccessible, but understanding the practical impact behind the legislation is what really matters. By taking early action and creating clear, supportive workplace practices, organisations can reduce risk, improve employee confidence, and build a healthier work environment for everyone.